Fellow auditors, wanted to alert everyone to changes in Oklahoma's backbilling rules that took effect January 1st. The Oklahoma Corporation Commission updated their regulations to explicitly limit backbilling to 24 months for utility errors and 12 months for billing errors not involving fraud. This affects PSO, OG&E, and other Oklahoma utilities. Has anyone tested these new limits yet?
Oklahoma backbilling statute changes - heads up PSO customers
Rick, that's great news! Oklahoma was one of the few states without clear backbill limits. Do you have the specific regulation citation? I've got several Oklahoma clients who could benefit from this if PSO tries any shenanigans. Steve, you're in Tulsa - have you seen PSO acknowledge these new rules?
Steve, it's OAC 165:35-21-31 if you want to look it up. The key distinction is "utility error" (equipment failure, meter problems, etc.) gets 24 months, while "billing error" (rate misapplication, calculation mistakes) gets 12 months. Fraud still allows unlimited backbilling but requires clear evidence.
This is huge for Oklahoma customers! I've been dealing with OG&E trying to collect 4+ years of undercharges from a rate schedule error. Filed a complaint last month under the old rules, but this new regulation should apply retroactively to pending cases. Time to amend my filing with the OCC.
Susan, be careful about retroactive application. The regulation says it applies to "bills rendered after January 1, 2022" not necessarily to errors discovered after that date. If OG&E's backbill was issued before January 1st, you might still be under the old rules. Worth checking the exact wording and timing.
Tom, you're absolutely right. OG&E issued their backbill demand in November 2021, so it predates the new regulation. However, they haven't filed any formal collection action yet, so I'm arguing the new limits should apply to any OCC proceeding initiated after January 1st. We'll see how the Commission interprets it.
Keep us posted, Susan. The OCC hasn't issued any interpretive guidance yet on transitional cases. Your case could set important precedent for other customers caught in the timing gap. The utilities are definitely going to push for narrow interpretation of the effective date.
Great discussion everyone. This is exactly the kind of state-specific intelligence that makes our forum valuable. Rick, thanks for the heads up on the Oklahoma changes. I'll add this to our regulatory updates database so members can stay current on backbill developments nationwide.