Uncovering utility misclassification errors at a national steel company
A publicly traded steel producer already paid an energy manager to handle procurement and auditing. Our independent, contingency-based review found 17 accounts the utilities had placed on the wrong rate class.
Context
The client operates dozens of industrial facilities across the United States. Its energy-management contract with a large provider covered both procurement and auditing. Discovery was engaged to look behind that contract on a contingency basis.
What we tested
For every account, we compared the rate class the utility had assigned with the eligibility criteria in the utility's own tariff: load size, usage pattern, service voltage and facility type. Where an account qualified for a lower-cost class, we calculated the overcharge for the recoverable period and filed documented claims.
What we found
Seventeen accounts across Indiana, Massachusetts, Nebraska, Minnesota, Colorado, Texas and Missouri were on the wrong class. One example: a San Antonio natural gas account billed on general service Schedule G qualified for large-volume Schedule LVG. Moving it saves $33,553.97 a year, 22.40% of that account's cost.
| State | Accounts | Refunds |
|---|---|---|
| Texas | 5 | $106,784.68 |
| Indiana | 2 | $94,730.22 |
| Massachusetts | 2 | $52,901.42 |
| Minnesota | 2 | $50,602.34 |
| Nebraska | 2 | $32,034.88 |
| Missouri | 2 | $24,504.36 |
| Colorado | 2 | $12,768.30 |
| Total | 17 | $374,326.20 |
Refunds arrived as utility and supplier credits. The original case file includes the CPS Energy rate comparison and a Constellation credit invoice.
What it shows
- Rate classes drift. Utilities rarely reclassify accounts when a plant's load changes.
- Having an energy manager is not the same as having every account tested against its tariff.
- Small per-account errors become six figures across a national footprint.