Michelle from Phoenix. Had an interesting situation where the rate class error was essentially caused by the client's own actions. They had applied for service years ago, estimated their demand at a level that put them in a lower rate class, and never corrected it when their actual demand came in higher. The utility billed them on what they were told to bill. When I raised the issue the client got defensive — said it was not an error, they just filled out the form the way they did. How do you handle situations where the client is more responsible for the misclassification than the utility?
Rate class error the client caused themselves
Marcus from Charlotte. This is less unusual than it sounds. Businesses underestimate their load all the time when applying for service, sometimes intentionally. The question is whether the current situation is still the correct classification or not.
The current classification is actually costing them more than the correct one would. They are in a schedule designed for lighter commercial use and they have been paying demand charges at a rate that applies to their actual peak, which is higher than the schedule optimally handles. It is a mess.
Rick from Indianapolis. So the fix actually helps them even though they created the problem? That makes the conversation easier.
Yes, correcting it saves them money going forward. But they cannot claim a retroactive refund because the utility billed correctly based on the information given. I had to explain that distinction — we can fix the future but not recover the past in this case.
Marcus from Memphis. That distinction between forward savings and retroactive recovery is important and clients do not always understand it going in. I now address it explicitly in my engagement letter.