The utility agreed my client was on the wrong rate and corrected it going forward. But they're refusing to issue a refund for the overcharge period. Their position: "We corrected the rate as requested. Our tariff doesn't require us to issue retroactive credits." The overcharge was $2,100/month for 3 years — that's $75,600 the client was overcharged. How do I fight this?
Utility agreed to correct rate but won't issue refund
Which utility and state? The answer depends heavily on the regulatory framework. In most states, the utility IS required to issue retroactive credits for billing errors. Check the state PUC's rules on billing adjustments — there's usually a specific provision requiring refunds for overcharges. The utility can't just say "we fixed it, you're welcome" when they've been overcharging for 3 years.
Phil N. is right — the utility's position is almost certainly wrong. In virtually every state, the utility has an obligation to charge the correct rate and to refund overcharges when errors are identified. The tariff may not explicitly say "we must issue retroactive credits" but the PUC's general rules or state utility law almost always requires it. File a formal written request for the refund citing the specific PUC rule. If the utility still refuses, file a complaint. Utilities that correct errors going forward but refuse refunds are trying to minimize their financial exposure. Don't let them.
It's Dominion Energy Virginia. Checking the Virginia SCC rules now for the refund requirement.
Found it — Virginia SCC Rule 20 VAC 5-312-90 requires refunds for overbilling. Sent a formal demand citing the rule. Dominion's tone changed immediately. Now they're processing a 24-month refund. Having the regulatory citation makes all the difference.