Client in Pittsburgh was buying supply from a competitive REP that went bankrupt 6 months ago. The client got switched to PPL's default service rate automatically. But the transition billing is a disaster — there's a partial month on the old REP rate, a gap period with no supply charges at all, and then the default service rate kicked in mid-cycle. The bills for those transition months don't add up. How do I untangle this?
Pennsylvania choice — client's REP went bankrupt, billing is a mess
REP bankruptcies create the messiest billing situations I've seen. The PUC assigns the customer to the utility's default service, but the cutover rarely aligns with the billing cycle. You need to get three sets of records: the final bill from the bankrupt REP (or their assigned successor), the utility's records of when default service started, and the customer's actual bills during the transition. Lay them out on a timeline and identify any gaps or overlaps in charges. I went through this with a Duquesne Light customer when a REP folded in 2015 — found $3,800 in double-billed supply charges during the transition.
Sylvia's timeline approach is the right method. REP transitions — whether from bankruptcy, contract expiration, or voluntary switching — are audit goldmines because the billing system handoffs almost always produce errors. Any time a client has changed suppliers in the past 3 years, check the transition months carefully. Also verify that the default service rate is correct for the client's customer class. Utilities sometimes default returning customers to a residential or small commercial rate even if they qualify for a large commercial rate.
Built the timeline. Found a 12-day overlap where the client was billed for both the old REP's final charges and PPL's default service. Also the default rate class is wrong — they're on GS-1 when they should be on LP based on their demand. Two findings from one messy transition. Thanks Sylvia and Randy.