I've got AEP Texas trying to collect 5 years of alleged undercharges from a industrial customer in Corpus Christi. They claim transformer ratio error that went back to 2008. PUCT Subst. Rule 25.28 allows collection of "all charges that would have been made" but doesn't specify time limits. Has anyone successfully challenged extended backbills under Texas rules? This is $340,000 they're demanding.
Texas PUCT backbill rules - AEP trying 5 year collection
Vivian, Texas doesn't have specific backbill time limits like California does. However, PUCT has applied "reasonableness" standards in contested cases. Five years seems excessive unless there's evidence of customer tampering or fraud. What caused the transformer ratio error initially? Was it AEP's equipment failure or installation mistake?
Dan, it was AEP's error during a 2008 meter upgrade project. They installed the wrong CT ratios and apparently never verified the installation. Customer had no way of knowing the ratios were wrong. I'm thinking of arguing that AEP should have discovered the error much sooner through normal quality control processes.