Just got a denial letter from Duke Energy Carolinas on a rate classification claim. They acknowledge the error exists and the client is on the wrong rate, but they're refusing to issue any refund. Their position is that the customer had access to the tariff book and should have identified the error sooner. The customer is a small warehouse operation — the owner has no idea what a tariff book even is. What are my options?
Utility denied claim — says error is past statute of limitations
That's an outrageous position for the utility to take. The tariff book is a 400-page regulatory document written in technical language. Saying a small warehouse owner should have read it and identified his own rate classification error is like saying a patient should have diagnosed their own illness instead of going to a doctor. Push back hard. Send a formal written response citing the duty of the utility to correctly classify accounts. The utility chose the rate when the account was established — it's their responsibility to get it right.
Duke Energy's position is not uncommon but it's also not a strong one. Here's how I would approach this. First, respond in writing and state that the utility, not the customer, bears the responsibility for rate classification. Cite the North Carolina Utilities Commission General Statute 62-133 which establishes that utilities must charge the correct rate. Second, request an informal conference with the NCUC staff. The commission staff will often mediate these disputes and utilities tend to become more cooperative once the regulator is involved. Third, if the informal process fails, file a formal complaint. The NCUC has consistently held that customers are entitled to refunds for utility billing errors.
I had the exact same situation with Georgia Power last year. They denied the refund but corrected the rate going forward. I filed a complaint with the Georgia PSC and within 60 days Georgia Power agreed to a 2-year refund. The regulator is your friend in these situations. Utilities respond to regulatory pressure in ways they won't respond to letters from auditors.
Filing the informal complaint with NCUC this week. Karen and Greg, your experiences are exactly what I needed to hear. Will update the thread when I have a resolution.