Got a nasty surprise in the mail yesterday. KUB (Knoxville Utilities Board) is trying to backbill me for $3,847 claiming a meter read error from 2003. They're saying the CT ratio was wrong and I've been underbilled for 8 years. I know some states have limits on how far back utilities can go. Anyone know what Tennessee's law says about this? This seems excessive to go back that far without any notice.
KUB trying to backbill me 8 years - is this legal in Tennessee?
Terry, I feel for you. Arizona has a 2-year limit under A.R.S. § 40-285, but I'm not sure about Tennessee. That's a huge amount to spring on someone after 8 years. Have you checked if they gave you proper notice when they discovered the error? Most states require utilities to notify customers within a reasonable time of discovering billing errors.
In Texas, our utilities can only go back 4 years under PUCT rules, and that's only if the customer was aware of the underbilling. Eight years seems way too long. I'd definitely fight this Terry. Did KUB provide documentation showing when they actually discovered this meter error?
I dealt with something similar with Gulf Power here in Florida. They tried to go back 6 years but Florida law limits it to 2 years for meter errors. Check Tennessee Code Annotated Title 65 - I think there might be something in there about utility billing limits. Don't just pay this without researching your rights.
Terry, I looked this up for you. Tennessee Code § 65-4-301 limits backbilling to 2 years from discovery of the error, not from when the error occurred. If KUB just discovered this in 2011, they can only go back to 2009, not 2003. You need to demand proof of when they actually found this CT ratio problem.
Elmer, you're a lifesaver! I just called KUB and they admitted they only discovered the CT issue during a routine meter inspection in July 2011. So by their own admission, they can only go back 2 years to July 2009. That cuts my bill from $3,847 down to about $960. Still stings but much more reasonable.
Great outcome Terry. This is exactly why we need to know these state limits. Nevada has a 3-year rule but it's from discovery, not occurrence. NV Energy tried to pull the same thing on one of my clients last year. Knowledge is power in this business.
Excellent work Elmer! This is why I love this forum. In Texas, Oncor tried something similar with a commercial client - they wanted to go back 7 years on a transformer billing error. But our 4-year limit saved the client about $15K. Always check your state's specific statutes, folks.
Adding this to my reference file. In Texas we also have that provision that if the customer should have reasonably known about the underbilling, the utility can go back the full 4 years. But if it's the utility's error (like a wrong CT ratio), the clock starts from discovery. Very important distinction.