An 11-plant food manufacturer
A food manufacturer recovers $672,000 in tax and rate errors
11 plants, 63 meters, 8 utilities, 6 states
- overbilling identified across 24 claims
- $750,000overbilling identified across 24 claims
- refunds and credits received to date
- $672,000refunds and credits received to date
- utilities updated exemption records
- 6 of 8utilities updated exemption records
- median time from claim filing to credit
- 47 daysmedian time from claim filing to credit
The challenge
Each plant paid its own utilities, and corporate finance reviewed totals only. Several plants had been added through acquisitions, and nobody was sure the tax exemption certificates had reached the utilities.
Production lines had been added and moved over the years. The plants' rate schedules had not been reviewed since the accounts were opened.
What we did
Collect bills and tax records
We gathered five years of bills where available, plus exemption certificates and the tax status each utility had on file.
Run the predominant-use review
We documented how much plant usage supported production and prepared exemption filings where the state rule required it.
Test industrial eligibility
Plant load patterns were compared against the eligibility terms of each schedule available to them.
Audit demand and metering
Demand and ratchet charges were recalculated from interval data, and multipliers were checked against instrument transformer records.
Findings
| Error | What we found | Amount |
|---|---|---|
| Sales tax on exempt usage | Tax charged on production energy at plants whose certificates had not reached the utility. | $344,000 |
| Wrong rate schedule | Plants billed on a general schedule after load changes made an industrial schedule available. | $228,000 |
| Demand ratchet errors | Ratchets set by commissioning loads and carried into normal operation. | $119,000 |
| Meter multiplier errors | Multipliers that did not match instrument transformers after plant expansions. | $59,000 |
Find out what your utilities owe you.
Connect bills for up to 50 meters. Get the findings report in about three weeks. Pay nothing unless money comes back.
- from bill access to first findings report
- 21 daysfrom bill access to first findings report
- of filed claims accepted by the utility in full or in part
- 94%of filed claims accepted by the utility in full or in part