I need to vent about Appalachian Power here in Roanoke. They've started doing these extended billing periods - 35, 36, even 38 days - claiming it's for "meter reading efficiency." But here's the kicker: they're not adjusting the rate calculations proportionally. A client on Schedule IGS got hit with a 36-day period where the demand charge was calculated as if it was still 30 days. Instead of $8.50/kW they paid $10.20/kW effective rate. On 850kW of demand that's an extra $1,445 for six extra days of billing period.
Appalachian Power 35-day billing period madness
Marcus, that's highway robbery. SCE here in California has done extended periods but they always adjust the rate calculations. A 36-day period gets 36/30 = 1.2x proration on all monthly charges. The fact that AEP is keeping the same absolute dollar amounts while extending the period is stealing. Have you calculated the effective rate increase they're imposing?
Gordon, for this particular client the effective rate increase was about 18% on the demand portion. Their monthly demand charge should have been $7,225 (850kW × $8.50) but instead they paid $8,670. All because AEP extended the billing period but kept the tariff rates constant. I've found similar overcharges on twelve other accounts ranging from 15% to 22% effective rate increases. This has to be intentional.
Marcus, document everything and contact the Virginia State Corporation Commission immediately. What you're describing isn't billing period adjustment - it's rate manipulation without regulatory approval. In Washington, Puget Sound Energy tried something similar in 2017 and got slammed with $2.8 million in refunds plus penalties. The SCC won't tolerate utilities implementing unauthorized rate increases through billing gimmicks.
Willa's absolutely right. This is rate making without approval, which violates every state's utility regulations. I dealt with Oncor doing extended periods in Texas but they properly prorated all charges. What AEP is doing sounds like they're using "meter reading efficiency" as cover for implementing stealth rate increases. The SCC will crucify them if you can prove systematic overcharging across multiple accounts.
I've been digging deeper and found AEP's own tariff language that contradicts their billing practice. Section 2.5 of their Schedule IGS states "all charges shall be adjusted proportionally for billing periods other than thirty days." They're violating their own filed tariff! I've now identified 47 accounts with improper extended period billing totaling $67,000 in overcharges just in the last six months.
Marcus, $67K in six months means they're probably stealing over $100K annually from Virginia customers alone. AEP operates in multiple states - this could be a multi-million dollar scheme if they're doing it across their entire territory. You need to contact utility auditors in Ohio, West Virginia, and Kentucky to see if AEP is pulling the same stunt there. This is bigger than one state issue.
Just saw this thread - Westar Energy (now Evergy) in Kansas tried extended billing periods without proper proration in 2018. The Kansas Corporation Commission made them refund $1.6 million and implement automated billing system controls to prevent future violations. The key was proving the systematic nature across multiple rate schedules. Marcus, you've got them dead to rights with their own tariff language.
Carl from Kansas is right about the systematic approach. I'm dealing with National Grid in Buffalo right now on a similar issue - they've been doing 32-34 day periods but only prorating energy charges, not demand or customer charges. The pattern across multiple states suggests these utilities are sharing "billing optimization" strategies that are really just ways to boost revenue without rate case approval. File complaints in every affected state.
Update: Filed formal complaints with Virginia SCC and reached out to auditors in other AEP states. Found similar issues in Ohio (12 accounts, $23K overcharges) and West Virginia (8 accounts, $18K). This is definitely a company-wide billing "enhancement." The Virginia SCC opened a formal investigation yesterday. AEP's response should be interesting - hard to explain away their own tariff language requiring proportional adjustments.
Marcus, excellent work exposing this. I've seen Entergy try similar games but never this blatant. The fact that AEP is violating their own filed tariff makes this an easy win at the commission level. Keep us posted on the SCC investigation - this kind of systematic overcharging needs to be hammered hard to deter other utilities from trying the same tricks.
Marcus has uncovered what might be the biggest billing fraud story of 2019. PG&E does extended periods here in California but they've never tried to avoid the rate adjustments. What AEP did shows they knew exactly what they were doing - stealing money through billing period manipulation while hiding behind "operational efficiency." This deserves national attention from NARUC and other regulatory bodies.
Dan's right about this being a major story. As someone who's worked utility billing systems for 20+ years, what AEP did was absolutely intentional. Billing systems don't "accidentally" forget to prorate demand charges while correctly prorating energy charges. Someone programmed it to work this way. Marcus, I'd be happy to provide technical documentation for your SCC filing if you need expert witness support.
Randy, I'd love to have your technical expertise on this. The more documentation we can provide to the SCC, the harder it will be for AEP to claim this was an innocent mistake. Final update: AEP just agreed to settlement discussions rather than fight the investigation. They know they're caught red-handed. This community's support and advice made all the difference in building a bulletproof case.