Just finished a nightmarish case with Duquesne Light here in Pittsburgh. Client got estimated bills for 8 straight months on their commercial account. When they finally read the meter, the actual usage was 40% lower than estimates. We're talking a $3,200 overcharge on Schedule GS-2. Has anyone else seen this kind of systematic estimation abuse? The utility claims their meter reader couldn't access the location, but my client was there every day and says nobody ever attempted to read it.
Duquesne Light estimated me for 8 months straight - $3,200 overcharge
Walt, that's brutal but not uncommon. FirstEnergy does the same thing here in Youngstown. I had a manufacturing client get estimated for 6 months, then hit with a massive true-up. The key is documenting every attempt they claim vs. actual access availability. Did you check if they have photos of blocked meters or access denial? Sometimes they estimate out of laziness and then fabricate the justification after the fact.
This is exactly why I always tell my Alabama Power clients to photograph their meters monthly. When the utility claims they couldn't read it, you have proof of accessibility. Walt, did Duquesne provide any documentation of their attempted reads? In my experience, if they can't produce work orders or photos, it's usually just poor route management.
Sacramento Municipal Utility District has been getting worse about this. They're supposed to read monthly but I've seen 3-4 month gaps regularly. The estimates are always high because they use the same month from prior year plus a percentage increase. It's a cash flow scheme, plain and simple. Walt, make sure you demand interest on that overcharge - Pennsylvania allows it under their tariff.
Here in Memphis with MLGW, we see this constantly on industrial accounts. The meter readers get behind schedule and rather than work overtime, they just estimate half the route. I've started requiring clients to submit monthly meter readings themselves to create a paper trail. When the utility's estimates are way off, you have documented proof of the actual consumption.
Lloyd from Akron here - Ohio Edison pulled this on a hotel client last year. Six months of estimates averaging 15,000 kWh, actual usage was only 9,200 kWh. The problem is their estimation algorithm uses weather data but doesn't account for business changes. This hotel had reduced occupancy but the utility kept estimating based on historical peaks.
Walt, you might want to file a complaint with the Pennsylvania PUC. I did that for a similar case with Nashville Electric Service and got a much faster resolution. The utility hates regulatory scrutiny and will often settle quickly to avoid formal proceedings. Document everything - the estimated bills, the actual readings, and any communication about meter access.
Eugene here from Columbus - AEP Ohio does this systematically in certain areas. I think they're understaffed and using estimates to manage workload. The real crime is they don't adjust the estimates downward when consumption patterns change. Your $3,200 overcharge sounds about right for 8 months of inflated estimates on a GS-2 account.
Georgia Power tried this nonsense with one of my Savannah clients. Eight months of estimates on a retail store that had clearly reduced hours during the recession. I demanded they physically verify the meter readings for the entire period and recalculate. Got back $2,800 plus interest. The key is being aggressive and not accepting their first settlement offer.
Update: Filed with PA PUC as Ed suggested and got a call from Duquesne's customer advocacy department within 48 hours. They're reviewing the entire 8-month period and have agreed to recalculate based on actual degree days and business operations. Looks like we'll get the full $3,200 back plus interest. Thanks for all the advice everyone!
Excellent news Walt! This is why I love this forum - we all learn from each other's battles. I'm keeping your PUC strategy in my playbook for future Alabama Power estimation disputes. The threat of regulatory involvement really gets their attention fast.