Client here in Tampa got moved to TECO's new TOU rate structure last month and the bills are all over the place. They used to be on a standard commercial rate and now they're on Schedule GS-2 TOU. The problem is TECO applied the new TOU rates to usage from before the rate change effective date. So they're getting charged peak rates for February usage that occurred before the March 1st TOU effective date. Has anyone else seen utilities retroactively apply new rate structures? This seems wrong but I'm not sure of the best way to challenge it.
TECO TOU Rate Transition Confusion
Vernon, that's definitely not right. Rate changes should only apply prospectively from the effective date, never retroactively unless it's a refund situation. Here in Arizona, APS tried something similar during a rate case transition and the Corporation Commission made them rebill affected customers correctly. You need to file a complaint with the Florida PSC immediately. TECO cannot legally charge new rates for usage that occurred under the old rate structure. This is basic regulatory law.
Sarah's absolutely right about the regulatory issue. Here in Louisiana, Entergy tried retroactive rate application during a major rate restructuring and got slapped down hard by the PSC. Vernon, make sure you have copies of all the bills showing the retroactive charges and document the exact dates when usage occurred versus when the new rates became effective. The utility has the burden of proof to show why retroactive billing would be appropriate, and I can't think of any legitimate reason for it in this case.
Vernon, I'd also suggest checking if other TECO customers who transitioned to TOU rates around the same time are experiencing similar retroactive billing. If this is a systematic error in how they're handling rate transitions, you might have a stronger case with multiple affected accounts. Here in Tennessee, TVA distributors have occasionally made similar mistakes during rate changes, but they've always corrected them once the error was pointed out. Document everything and don't let TECO drag their feet on the correction.