You've hit on a common frustration. While it sounds absurd from a purely technical perspective, the POCO's resistance likely stems from a mix of regulatory, economic, operational, and historical reasons. Here's a breakdown

1. Regulatory Hurdles and Tariffs:
Jurisdictional Rules

Public Utilities Commissions (PUCs) heavily regulate POCOs. These regulations often dictate how services are metered and billed. Some jurisdictions explicitly discourage or prohibit multiple services to a single property under common ownership.

Tariff Structures

POCOs design tariffs to recover their costs of service. Multiple meters can complicate this, potentially allowing customers to arbitrage between rate classes or avoid demand charges, ultimately eroding the POCO's revenue stream. For example, one meter could be used as a "primary" load, qualifying for a lower rate, while a secondary meter picks up peak demand at a higher rate.

Meter Proliferation and Data Management

Every meter represents a cost: installation, maintenance, reading, data management, billing. Multiple meters significantly increase these overhead costs for the POCO.

2. Economic Considerations



Infrastructure Duplication

Setting up two transformers, two meter bases, and associated infrastructure (lines, switches, etc.) is more expensive than a single, larger service. Even though you say they'll pay for the padmount, they are still responsible for its maintenance, monitoring, and future replacement.

Load Balancing and Grid Stability

POCOs strive to balance load across their distribution network. Multiple services from relatively small transformers can be harder to manage for voltage stability and fault current coordination, particularly if loads are highly variable (which is likely in a theatrical setting).

3. Operational Challenges



Safety Concerns

Multiple services introduce complexity for maintenance and emergency response. Workers need to be aware of all possible sources of power before working on any part of the electrical system. This increases the risk of accidents.

Coordination and Control

In the event of a fault or outage, managing multiple services to the same property is more complex than dealing with a single service.

Future Expansion and Upgrades

Multiple smaller services might limit future upgrade options compared to a single, larger service.

4. Historical Practices and Inertia



"That's Just How We Do It": Sometimes, policies are simply based on historical precedent and haven't been reevaluated, even if the rationale behind them is no longer relevant. Uniformity and Standardization

POCOs prefer standardized practices to streamline operations and training. Deviating from these standards requires extra justification and internal approval.

5. Potential for Abuse and Misuse



Avoidance of Commercial Rates

The POCO might worry that your client is trying to avoid higher commercial rates by splitting the service and claiming part of the property is residential or subject to a different rate structure.

Negotiation Strategies and Possible Solutions

Given these obstacles, here's how you might approach the situation:

Escalate to a Higher Level

If the initial contacts are unhelpful, try escalating to a senior engineer or management level at the POCO. Explain the specific needs of the theater and the technical limitations preventing a single, larger service.

Document Everything

Keep detailed records of all communications with the POCO, including dates, times, names, and the substance of the conversations.

Offer a Compromise

Perhaps you can agree to a higher demand charge on one of the services, or accept a more expensive meter type that provides better data for the POCO's load management.

Third-Party Review

Consider hiring an independent electrical engineering consultant to review the situation and provide a technical justification for multiple services. A well-documented, unbiased report can be persuasive.

Legal Counsel (Use Sparingly)

If all else fails, a letter from an attorney specializing in utility regulations might prompt the POCO to reconsider. However, this is generally a last resort, as it can damage the relationship.

Submetering (Check Local Regulations)

Even if the POCO only allows one meter, you might be able to install submeters internally to track energy consumption for different buildings and allocate costs accordingly.

Demand Response Programs

Explore if the POCO offers any demand response programs. Participating in these programs can sometimes provide incentives or rebates that might offset the cost of a second service.

Consider "Critical Load" Designation: Since it is a theater, inquire if they can designate the Theater's load as a "Critical Load" which may allow for a second service and/or preferred status during outages. Investigate Load Management Strategies

Work with your client to identify opportunities to reduce peak demand, such as using energy-efficient lighting, staggering loads, or implementing a power management system. Reducing the overall load might make it possible to fit within the POCO's single-service limitations.

Explore Local Government Support

If the theater is a significant part of the local community, enlist the support of local government officials. They might be able to advocate on your behalf with the POCO.

Feeder Size Limits

Ask if they are limited to the feeder size. It is possible a larger transformer is available, but the feeder isn't rated for it.

The "Wholly Owned Subsidiary" Approach

While this might seem like a bureaucratic workaround, it could work if the POCO's rules specifically prohibit multiple services to the same entity. However, be prepared for potential pushback and scrutiny, especially if the subsidiary is clearly a sham designed solely to circumvent the rules. Also, be aware of the potential legal and tax implications of creating a separate entity.

Important Note:

The specific regulations and policies vary significantly from one POCO to another and from state to state. It's essential to thoroughly research the applicable rules in your jurisdiction and tailor your approach accordingly.Good luck! Flag for review