Bill auditing

Before shopping a supply rate it is worth checking that the bill in front of you is correct — because the largest recoverable amounts we find are usually not in the supply rate at all.

Most common finding
Wrong utility rate class for how the site now operates
Also checked
Demand, power factor, meter multipliers
Frequently missed
Texas predominant use sales tax exemption
Cost
None

A commercial electricity bill is a compound document: a supply charge from your retail provider, a set of regulated delivery charges from CenterPoint, and taxes. Each has its own logic, and errors in the second two are worth more than most supply savings.

Tariff classification

CenterPoint bills commercial customers under different rate classes depending on load size and characteristics. The class assigned when your meter was installed may no longer match how the business operates — after equipment changes, an expansion, a shift-pattern change or a change of tenant.

This is the most common recoverable finding, and it is not a mistake anyone made. It is a setting that has quietly become wrong, and it can persist for years because there is no mechanism that reviews it.

Demand charges

Demand is billed on the highest fifteen-minute interval in the period. Worth verifying:

  • That the billed demand matches the interval data — occasionally it does not.
  • Whether a ratchet clause applies, under which a single high peak sets a floor for subsequent months.
  • Whether a one-off peak, from a test, a failure or an unusual event, is still driving your charges.
  • Whether operational sequencing could reduce the peak that gets billed at all.

Power factor

Facilities with substantial motor load can drift below the utility's power factor threshold and incur a penalty. Correction is a capital decision — capacitor banks and the like — but knowing the penalty exists and what it costs annually is what makes that decision possible. Many operators have never had it pointed out.

Meter multipliers

Larger services are metered through instrument transformers, and the reading is multiplied by a constant. A wrong multiplier is rare and consequential, because it scales everything on the bill. It is a quick check and worth making.

Contract rate verification

A basic reconciliation: does the supply rate on the bill match the rate in the contract, month after month? Discrepancies appear most often after a contract rolls over, after a supplier system migration, or when a pass-through charge is applied that the contract did not contemplate.

Sales tax

Texas provides a predominant use exemption where more than half the electricity through a meter is consumed in manufacturing, processing or fabrication. Establishing it requires a study, and it applies to considerably more businesses than claim it — particularly smaller fabrication and food processing operations that do not think of themselves as manufacturers.

This is a tax matter, not an energy one. We flag where it looks likely and you take it to your accountant.

What an audit is not

It is not a route to a guaranteed refund, and anyone promising one before seeing a bill is guessing. Most audits find that the billing is broadly correct and the opportunity is in the supply contract or the tariff class. That is still worth knowing, and it costs you nothing to find out.

Bill audit questions

What does a bill audit actually check?
Whether you are billed on the correct utility tariff for your usage pattern, whether the supply rate matches your contract, whether demand and power factor charges are being applied correctly, whether meter multipliers are right, and whether you are paying sales tax you may be exempt from. It is a check of arithmetic and classification, not a sales exercise.
How common are billing errors?
Outright errors are not the common case. Misclassification is — being on a utility rate class that no longer suits how the business operates, which is not an error so much as a setting nobody has revisited since the meter was installed.
Can you recover money already overpaid?
Sometimes. Where a genuine billing error is established, suppliers and utilities will typically rebill, subject to limits on how far back a correction can go. Tariff misclassification is usually corrected going forward rather than retroactively.
Is my business exempt from sales tax on electricity?
Possibly. Texas offers a predominant use exemption where more than half the electricity through a meter is used in manufacturing, processing or fabrication. It requires a study to establish and is claimed far less often than it applies. It is a tax question, so we flag it and you take it to your accountant.
Does an audit cost anything?
No. Reading a bill properly is the first thing we do for any account, whether or not you end up shopping the supply with us.

Send a bill and we will read all of it

We read what you are on now, take it to the providers we hold agreements with, and tell you whether it is worth moving. If it is not, we say so.

Start with your bill Call 832-573-8546

No cost, no obligation. Monday–Friday, 8:00am–6:00pm CT.