How I Found a $35,000 Utility Billing Error
Most people assume their utility bills are accurate. But even the best-run utilities can make mistakes—and those mistakes can cost you big.
When Load Factor is Too Good to be True
A long time ago, in a Canadian province far, far away, I uncovered an electricity billing error worth over $30,000 for a large facility with multiple meters. Here’s how it happened.
I was reviewing the facility’s bills when one month jumped off the page. The demand (kVA) reading was normal, but the energy consumption (kWh) was an outlier. Because my review included checking the load factor for each bill, I saw it was over 130% that month—an impossibility.
Beware of the Changed Meter
Digging deeper, I noticed the meter number had just changed. The anomalous bill was the first one using readings from the new meter. That was the clue. At first, the utility pushed back on my concern. But when you can show a load factor over 100%, the math is hard to argue. They eventually figured out that the meter tech had misread the old meter before removing it.
I worked with the utility to estimate the a more reasonable kWh reading. Then they issued the client a credit of nearly $35,000.
The Takeaway?
This was a large, sophisticated facility, staffed with smart people. But the mistake still slipped by unnoticed. That’s the reality: big bills, busy teams, and errors that blend into the noise. Don’t just pay your utility bills on autopilot. Errors do happen—and they almost never work in your favor. Even in these days of smart meters which should prevent reading errors, a careful review might save you thousands.
If you’d like help reviewing your historical bills, or if you suspect you’ve been billed in error, GRCL can help. Because if you're not managing your energy, who is?
2-Minute Payback is GRCL’s weekly blog of energy-saving tips and tools for busy building managers. This post was written by Chuck Faulkner.
