Seeking Refunds for Misapplied Utility Rates

An issue first unearthed by the Cutrale debacle of Leesburg, Florida, is dredged up once again for over a dozen companies served by Duke Energy Florida.  The utility is admitting that some business customers are paying higher rates than they should, but Duke is refusing to compensate those companies for what they overpaid. Tampa Bay Times Article Here.

A number of factors go into creating these situations, but they all stem from a business not having knowledge and personnel needed to choose the correct rate. Investor Owned Utilities (IOU’s) like Duke Energy Florida, Florida Power & Light, and Tampa Electric offer a slew of different rates for the electricity they provide based on a number of factors like, how much you use, when you use it, how you use it, and many more. In an effort to try and simplify the convoluted choices, the different types of business rates can be placed in a 40×15 matrix as seen to the left.

For buildings like the First Baptist Church of St. Petersburg in the Times article above, who had been placed into the wrong rate structure, the matrix did little to help their billing department know something was wrong. As a result, they paid over $20,000 more than they should have and they are not alone. This is such a big problem that former employees of the IOU’s are leaving and starting businesses that review customers’ utility bills, save them money by getting on the right rate, and split the savings.

There are many companies that exist to monitor utility bills so that businesses can focus on their own industry and not worry about their energy bills. In fact, Hill York’s Energy Solutions group has energy service agreements that benchmark energy use, analyze utility bills, and monitor equipment while identify deficiencies that might cost you money. These services range in price depending on the customer, but like the aforementioned shared savings agreement, you could pay nothing upfront.

This case study describes the efficiency offerings we have while also singling out two instances where Hill York discovered discrepancies in utility bills with a value of over $80,000 and $18,000.

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