Every commercial account sits on a rate schedule: the price list in the utility’s tariff that sets the service charge, the energy price and any demand charge. The schedule is usually picked when the account opens, by whoever set up the service, from what they knew about the site that week.
Sites change. Hours get longer, equipment gets added, a tenant moves out. The schedule stays where it was.
What “wrong rate” means
Two different problems travel under one name.
A misapplied schedule is a billing error. The account is on a schedule it does not qualify for, or one you never requested, perhaps after a billing system change or an account transfer. That is the utility’s to correct, and its tariff rules decide how far back.
A poor fit is not an error. The site qualifies for more than one schedule, and the one it sits on costs more for its actual load than another would. Nobody did anything wrong; the load simply moved.
Both start the same way: find the schedule on the bill and read what it says.
Find the schedule on the bill
The schedule appears as a code or short name, usually near the usage figures or in the account details. Our bill anatomy guide shows where it sits on a typical commercial bill and how it connects to the other lines.
Write the code down for every account. Then look it up in the utility’s tariff book and read two sections: availability, which says who may take the schedule, and the monthly rate, which lists every charge.
Do the same for every other schedule in the same customer class. You now have a short list of the schedules each site could be on.
Six signs worth checking
None of these proves a site is on the wrong schedule. Each one is a reason to run the numbers.
- The site changed since the account opened. New hours, a heat pump, a server room, EV chargers, a new tenant or a vacant floor.
- A low load factor on a demand-heavy schedule. The site peaks briefly and runs light the rest of the time.
- Demand sits near a threshold. Many schedules set eligibility by peak kW. A site that has crossed a line, in either direction, may now qualify for another schedule.
- The site runs seasonally or part of the week. A summer-only operation or a weekday-only office can pay a demand charge sized for its busiest month.
- Most of the load falls off-peak. A site that runs overnight or on weekends may fit a time-of-use schedule better than a flat one.
- Similar sites sit on different schedules. If two stores of the same size and hours carry different codes, one of them is worth a look.
Why demand-heavy schedules matter
The schedule decides how much of the bill rides on demand. A 2017 National Renewable Energy Laboratory analysis of more than 10,000 utility tariffs in 48 states found that demand charges “can account for anywhere from 30% to 70% of a customer’s electricity bill.”
That is why fit matters. Two schedules can price the same load very differently by shifting cost between the demand charge, the energy charge and the fixed charge. A site with a sharp short peak pays heavily on one and less on another. A site with a flat load may see the opposite.
What to gather first
A rate check is only as good as its inputs. Before running any numbers, collect these for each account:
- 12 months of bills, with kWh, metered and billed kW, read dates and the schedule code on each.
- Interval data for the same 12 months, if the site has an interval or smart meter.
- The current tariff sheets for the schedule the account is on and every schedule it could move to, including rider sheets.
- A note from the site team on what changed in the last two years and what is planned for the next one.
- The service voltage, because some schedules are available only at certain voltages.
The site team’s note is the item most often skipped and the one most likely to change the answer. A schedule that fits last year’s load may not fit a site that is adding a second shift in March.
Rerun 12 months, not one
The only honest test is to recalculate the site’s actual bills on every schedule it qualifies for. One month is not enough, because demand and seasonal prices swing. Use 12 months of bills, and interval data if the alternative schedule prices by time of day.
Here is the shape of the result, with illustrative round numbers.
| Schedule | Fixed charges | Demand charges | Energy charges | Annual total |
|---|---|---|---|---|
| Current | $1,200 | $36,000 | $30,000 | $67,200 |
| Alternative | $2,400 | $24,000 | $36,000 | $62,400 |
In this example, the alternative carries a higher fixed charge and higher energy prices but a lower demand charge. On this site’s last 12 months, it would have cost $4,800 less. On a different site with a flatter load, the same comparison could go the other way.
Keep every formula visible. Finance should be able to check the math line by line, and you will want to rerun it if the site changes again.
Include the riders
A rerun that prices only the base schedule can mislead. Riders apply per kWh, per kW or as a share of the bill, and some apply to one schedule and not another.
Price each rider that applies to each schedule, on the same 12 months. If a rider is charged per kW, a schedule with lower billed demand carries less of it. If a rider is charged per kWh at one price for the whole class, it drops out of the comparison. Some riders set a different price for each schedule, so check the rider sheet rather than assuming.
Read the switching rules first
Before you request a change, read the schedule’s terms. Tariffs commonly set rules on:
- Minimum stay. How long the account must remain on a schedule before it can switch again.
- Switching back. Whether you can return, and when, if the new schedule turns out worse.
- Metering. Whether the new schedule needs a different meter, such as an interval meter for time-of-use pricing, and who installs it.
- Effective date. Usually the next read date after the utility processes the request.
- Commitments. Some schedules require a minimum billed demand or a service agreement.
A change that would have cost less last year can still be a poor choice if the site is about to add load or close a wing. Ask the site team what is planned before you sign.
When the utility got it wrong
If the account sits on a schedule it does not qualify for, or one you never requested, treat it as a billing error. Write to the utility with the account, the schedule on the bill, the schedule you expected and the tariff section that sets eligibility. Ask for a correction and a rebill of the affected periods.
How far back the utility will go is set by its tariff and the state commission. Keep a copy of every letter and the utility’s reply, and check the next bill to confirm the schedule changed.
How often to recheck
Fit is not settled once. A schedule that suits a site this year can stop suiting it after a change in load or a change in the tariff.
Recheck an account when any of these happens:
- The site adds or removes major equipment, such as a heat pump, a chiller or EV chargers.
- Operating hours or shifts change.
- A tenant moves in or out on a shared meter.
- The utility finishes a rate case or redesigns a schedule.
Without any of those, a yearly look at load factor and peak kW is usually enough to tell whether a full rerun is worth the time.
Check the fit on every account
The Rate Fit Review reruns 12 months of bills for up to 20 accounts on every schedule each one qualifies for, shows the math in a workbook, notes the switching rules and drafts the change requests for your signature. It is one part of our tariff analysis work. For a first look at whether any of your sites deserve a rerun, send three bills for a free Three-Bill Read.
