Background: - George A Koteen Associates

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GEORGE A. KOTEEN ASSOCIATES, INC.
Utility Rate Consultants
Specialists in Refunds,
Credits, Rate Reductions
An Experienced Utility Auditing Service
55 Years of Professional Service...
Electricity – Gas – Water – Sewer
Steam – Telecommunications
Background:
Utility bills were once an easily reconcilable and unquestioned expense in the old days of cheap
energy - but now monthly statements have soared to become the source of the highest fixed
costs in anyone's budget. Utility rates and invoices have become more complex and it is not
the responsibility of the power companies to give the lowest possible rates when more than one
is available. The responsibility rests with the customer. With the deregulation of utilities, some
in addition to their normal utility bill will receive a separate invoice from an inexperienced
Electric/Gas Marketer making matters more complex and the chance of incorrect billing even
greater. With constant rate revisions being implemented by all utility companies, it is an
advantage to your company to have a watchdog, an expert in utilities, to protect you from
overpaying at all times.
GEORGE A. KOTEEN ASSOCIATES, INC. is a utility auditing firm, and our leading experts
in the field specialize in utility rate consulting throughout North America, as well as many
foreign countries. Koteen Associates also has partnerships in the area of telephone auditing and
deregulation consulting. We have been in business since 1953 and have been successfully
lowering utility costs and recovering overpaid utility charges for hundreds of commercial and
industrial customers. Not only do we enjoy a great relationship with our many clients but with
the various nationwide utility companies. All of our services are provided at no cost to you the
client, as are remuneration is derived and paid for entirely from the refunds and savings realized
as a result of implementing our recommendations. We do not ask for a retainer and charge no up
front fees of any kind. If we do not obtain any refunds, adjustments, credits or savings for your
company, there is no fee!
What We Do:
The problems of utility cost control are difficult and there are chances that your operation is
being overcharged on utility bills. Organizations do not have the time, tools or expertise to audit
their own bills.
Through an in depth technical analysis using sophisticated software and 45+ years experience,
our objective is to recover overcharges and obtain any changes that can be made in rates. This
includes implementing riders, special provisions, discounts and other factors that reduce the cost
per unit charged to you on your utility bills. Specifically we will:
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Conduct an extensive technical analysis of all-utility rates, schedules, metering, and bills.
Identify overcharges and obtain refunds of overpayments.
Personally, negotiate on your behalf with the utility companies or energy marketer.
Obtain the proper rates, review your contracts and service agreements, and submit
recommendations for all possible savings to ensure that you are paying the lowest
possible for utility services based on your industry and usage.
Establish and review pre-opening rates *
Our audit is completely non-invasive to your company and does not affect facility operations or
cause a great deal of extra staff work. All of our work is performed off site using utility company
records you provide. To begin, all will need is a signed agreement and copies of the last 12
months of utility bills (electric, gas, water and sewer).
How It Works:
Below is an example of a summer gas rate calculation from one of our clients.
This customer was being billed under the Utility Companies "Rate A".
Block 1
Block 2
Service Chg.
Fuel Adj.
Total Cost
3,550 x $0.23426
3,550 x $0.340967
3,550 x $0.003987
= $831.62
= $1,210.43
= $5.79
= $14.15
= $2,062.00
Koteen analyzed this client’s rates and determined that the client would benefit based on many
factors (hours of use, load factor, etc.) on an alternate rate the Utility Company offered – "Rate
B". We then contacted the client’s utility supplier and implemented our recommendation for cost
savings. We then followed up and verified that the client was realizing the savings due to them.
See the results for the same gas bill below.
Block 1
Block 2
Block 3
Service Chg.
Fuel Adj.
Total Cost
1000 X $0.10577
2,550 x $0.04755
3,550 x $0.359467
3,550 x $0.003987
= $105.77
= $121.25
= $1,276.11
= $53.57
= $14.15
= $1,570.85
As you can see from the comparison above, changing customer’s rates, riders, tariffs or special
provisions resulted in a monthly saving of approximately $500.00. When applied to multiple
facilities and the variety of consumption and demand usage each month, savings can be
correspondingly greater. We continue monitoring the accuracy of future billings, payments and
credits as to insure that as changes occur in your usage, tariffs, and as new incentive programs
become available, your company maintains the lowest possible costs.
Partial Client Reference:
BRIAD GROUP (TGIF’s/Wendy’s)
David Cahill
(973) 369-1307
PANERA BREAD NJ
James Nawn Jr.
(732) 249-0090
INSERRA SHOPRITE
Frank Festa
(201) 529-5900
JERSEY CITY BOARD OF ED
Dr. Emery Konick
(201) 915-6000
DELRAY GRANDE (Luxury Condos)
Andrew Dittoe
(561) 637-9059
What they Say:
State Of New Jersey - “Concerning this matter, the Court in Decisions relating to selection of rate
schedules, have indicated it would be unreasonable to charge a utility with the legal duty of selecting
the rate most favorable and suitable for a particular customer, since this would require prescience and
prophecy on the part of the utility.”
State Of Connecticut - “We wish to state that this Commission has no specific rule or regulation
requirement various utilities to bill their customers on the cheapest sand best rate possible.”
State Of California - “In such cases, the choice rests upon the customer, and no utility undertakes to
do more than explain the advantages or disadvantages of any schedules when a choice may exist.”
New York State Electric And Gas Corporation - “Where more than one Service Classification is
applicable, the applicant shall select a classification upon which his service will be based.”
Michigan Consolidated Gas Company - “The Company does not guarantee that each customer will
be served under the most favorable rate at all times, and will not be responsible for notifying the
customer of the most advantageous rate.”
Central Power & Light Company (Texas) - “the Company does not Assume Responsibility and
will not be responsible for Customer being served under the most favorable rates at all times, and
will not make refunds due to the difference, if any, between the amount of charges under a rate
selected.”
Ralph Nader - “Rather than getting better as a result of computerization, utility bills seem to be
getting worse. They are indecipherable, lack itemization, contain inflated or phony charges, and cost
customers billions of dollars a year.”
Rep. Robert T. Matsui (Dem - CA) - “Utilities overbilled $19 Billion in energy and telephone
charges on incorrect taxes alone. These utilities are so rich with cash that they are buying such
businesses as golf courses, recording studios and even a drug store chain.”
Affiliations:
Koteen Associates is completely independent and has no affiliations with any Utility Companies
or energy provider. However, as outside independent consultants we are liaisons between clients
and their respective Utility Company or energy provider.
We at Koteen Associates Inc., with the majority of staff having over 20 years experience in
the utility auditing field feels that when specialists are needed, nothing can replace years of
experience. We thank you in advance for your consideration in obtaining our services and if you
have any questions please contact us.
GEORGE A KOTEEN ASSOCIATES, INC.
290 Queen Anne Road
Teaneck, NJ 07666
Phone: (201) 457-7400 Fax: (201) 457-7402
www.koteenassociates.com
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