Rate schedules: the commercial overcharge nobody is selling you a fix for

What a rate schedule is

Your utility does not have one commercial price. It has several rate schedules, each a distinct combination of fixed charge, volumetric rate, demand rate, time-of-use structure and eligibility conditions. All of them are filed with the state regulator and all of them are public documents.

Your account sits on exactly one. Which one was chosen when the account was opened, and in most cases it has never been revisited since.

How accounts end up on the wrong one

Rarely through anyone's mistake. The usual story is drift:

• The schedule was chosen by whoever opened the account, sometimes years ago, sometimes by a previous tenant whose operation was entirely different.
• The business then changed. Equipment was added, shifts were extended, a unit next door was taken over, refrigeration was upgraded, a kitchen was expanded.
• The schedule stayed where it was, because nothing in the billing process triggers a review.

The result is an account being billed under assumptions that stopped describing it some time ago.

The signals worth checking

Four patterns suggest a mismatch is worth investigating:

• A low load factor on a demand-heavy schedule. The account is paying a high demand rate for capacity it rarely uses. Calculate yours.
• A high load factor on a volumetric-heavy schedule. The reverse: steady consumption paying a premium per kilowatt-hour that a demand-metered schedule would have priced lower.
• Crossing an eligibility threshold. Many schedules have demand or consumption thresholds. An account that grew past one may now qualify for a schedule it could not use before — and nothing will tell it so.
• A flat load with no time-of-use schedule, or a shiftable load sitting on a flat rate where a time-of-use schedule exists.

How the check is actually done

It is arithmetic, not judgement. Take twelve months of your actual usage and demand, and re-bill it under each alternative schedule you are eligible for, using the rates in the currently filed tariff. Compare the totals.

Because both inputs are yours or public, the result is fully verifiable. You can reproduce it, your accountant can reproduce it, and so can the utility. That is a materially different kind of claim from a projected saving on a future supply contract.

Two cautions. Some utilities restrict how often an account may change schedule, or impose a minimum term on the new one — so check before switching, because a change you cannot reverse for twelve months deserves more than one month of data behind it. And a schedule that wins on last year's usage may not win on next year's if the operation is changing.

Why this works everywhere

Rate schedules are set by the regulated utility. They exist in every state, including the majority of US states with no competitive retail supply market at all. An account in Georgia or Florida has exactly the same opportunity here as an account in Texas.

It is also work no supplier competes with, because there is no supply commission attached to it. That makes it one of the few genuinely non-conflicted services available in this category.

Common questions

How do I know if I am on the wrong electricity rate schedule?

Compare your actual twelve months of usage and demand against the alternative schedules your utility offers, using the currently filed tariff rates. If another schedule you are eligible for produces a lower total, the current one is a poor fit.

Can I change my utility rate schedule?

Usually yes, subject to eligibility conditions in the tariff. Some utilities restrict how often a schedule may be changed or impose a minimum term, so confirm the conditions before switching.

Does rate schedule optimisation work in regulated states?

Yes. Rate schedules are set by the regulated utility and exist in every state, including those with no competitive retail supply market. The work is identical.

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