I've got a client with a mysterious 3% "Service Enhancement Fee" showing up on their MLGW bills starting in July. Can't find any mention of this in the rate schedules or any PSC filings. The fee is being applied to the total electric charges before taxes. Has anyone else seen this fee or know what it's supposed to cover? Client is a small manufacturer using about 200 MWh monthly.
Unauthorized surcharge on MLGW bill?
Amir - that doesn't sound right. MLGW usually provides decent notice for new fees and surcharges. Have you checked with their customer service to get an explanation? Sometimes these mystery charges turn out to be data entry errors or misapplied adjustments. 3% on 200 MWh is serious money.
I haven't seen that specific fee but Cleveland Public Power has pulled similar stunts in the past. They'll add fees without proper notification and hope customers don't notice. Amir, I'd demand a written explanation from MLGW and ask them to cite the specific tariff authority for the charge.
Terry and Frank - good advice. I called MLGW customer service and got three different explanations from three different reps. One said it was for system upgrades, another claimed it was a fuel adjustment, and the third had no idea. Clearly there's confusion even internally. I've requested written documentation and escalated to a supervisor.
Amir - this sounds like a billing system error to me. LG&E here in Louisville had a similar issue last year where a test surcharge accidentally went live on about 50 commercial accounts. Took them 6 weeks to figure it out and issue refunds. Keep pushing for answers and document everything.
Jack makes a good point about billing system errors. CL&P here in Connecticut had a "phantom surcharge" show up on several dozen accounts last spring. Turned out to be a programming glitch during a system update. If MLGW can't provide clear documentation of the fee's authorization, I'd push for immediate removal and refund.
Update: Finally got a call back from an MLGW billing supervisor. The "Service Enhancement Fee" was indeed an error - apparently a test charge that wasn't properly removed from the production billing system. They're crediting back all charges and claim it only affected about 20 commercial accounts. Still waiting for the credit to show up.
Great outcome Amir! This is exactly why it pays to question every line item on utility bills. These "test charges" and system errors happen more often than utilities like to admit. Glad you caught it and pushed for resolution. How much was the total refund if you don't mind sharing?
Terry - the refund was about $1,800 covering July and August bills. Not huge money but significant enough for a small manufacturer. The lesson here is that even established utilities like MLGW can make mistakes. Always scrutinize new charges and don't accept vague explanations from customer service reps.
Amir - $1,800 is definitely worth the effort you put in. Frank here - I always tell my clients that utility billing errors typically favor the utility, not the customer. It's rare to see undercharges slip through but overcharges happen regularly. Good catch and good follow-through on your part.
This is a perfect example of why detailed bill audits matter. Even municipal utilities like MLGW can have billing system issues that result in unauthorized charges. The key is catching them quickly and being persistent with follow-up. Amir did exactly the right thing by escalating when the initial responses were inconsistent.