Client in Lexington had their 1970s General Electric mechanical meter replaced with AMI unit. Electric usage jumped 40% overnight. Kentucky Power claims the old meter was running slow. Bill went from $3,200/month to $4,800/month. Can they back-bill for the under-registration?
Kentucky Power mechanical meter was under-registering for years
Check Kentucky regulations. Most states allow back-billing for meter errors but usually limited to 6 months. PSC Order should specify the rules.
Louisville Gas & Electric had similar situation with my client. Old meter was 25% slow. They back-billed for 4 months but we negotiated payment plan. Kentucky PSC allows back-billing under 807 KAR 5:041.
I've seen this a lot. Mechanical meters slow down over time due to bearing wear and magnetic drag. Smart meters are calibrated electronically so they stay accurate longer.
Always request meter test reports when usage increases dramatically after meter replacement. If the old meter was outside accuracy tolerances, you may be able to negotiate the back-billing amount.