Dealing with a nightmare situation in Sioux City. MidAmerican Energy claims they've been underbilling a manufacturing client since 2018 due to incorrect demand billing. Now they want $47,000 in back payments going back 6 years. Iowa Utilities Board rules seem to allow only 2 years for billing errors. Has anyone successfully challenged MidAmerican on backbilling limits?
Iowa backbilling laws - MidAmerican Energy wants 6 years of back payments
Dana, that's a huge amount! Here in Michigan, DTE can only go back 2 years for billing errors under MPSC rules. Six years sounds way beyond Iowa's limits. Have you checked Iowa Code Chapter 476 and the IUB administrative rules? I think you'll find they're exceeding their authority.
I'm not familiar with Iowa specifically, but here in Texas we see this a lot where utilities try to go beyond statutory limits hoping customers won't challenge them. Oncor tried to backbill a client 5 years when our limit is 4. Always worth fighting these excessive claims. What's MidAmerican's justification for 6 years?
They're claiming it falls under Iowa Administrative Code 199-19.4 which allows collection of "unpaid bills" rather than billing errors. But this wasn't an unpaid bill - it was their mistake in applying the wrong tariff schedule. The client paid every bill they sent. I think they're misinterpreting their own rules.
Dana, that sounds like a stretch on their part. In Illinois, ComEd tried similar logic - claiming underbilling due to tariff errors were "unpaid amounts" rather than billing corrections. The ICC shot that down fast. Iowa's 2-year limit for billing adjustments should apply here.
I'd file a complaint with the Iowa Utilities Board immediately. Black Hills Energy tried something similar here in South Dakota and our PUC made them reduce it to the statutory 2-year limit. Utilities often try these aggressive interpretations hoping customers won't know their rights.
Update: Filed the IUB complaint last week. MidAmerican's response was interesting - they're now claiming they can go back to 2018 because that's when the current tariff took effect. But they still haven't addressed why they think 6 years is allowable under Iowa law. Anyone know the specific citation for Iowa's backbilling limits?
Dana, I think you want Iowa Administrative Code 199-19.4(8) which limits adjustments to 2 years from discovery of the error. There might also be something in Iowa Code 476.20. Pennsylvania has similar language in our PUC code - utilities can't just go back indefinitely on their own billing mistakes.
Following this thread with interest. Entergy tried to pull something similar here in New Orleans - 5 years of backbilling on a rate classification error. Louisiana PSC limited them to 2 years and made them prove when they actually discovered the mistake. The burden should be on MidAmerican to justify their timeline.
Great news! IUB ruled in our favor today. Limited the backbilling to 24 months from discovery (March 2022) which cuts the amount from $47,000 down to $18,500. Still painful but much more manageable. They specifically cited Iowa Admin Code 199-19.4(8) that Sylvia mentioned. Thanks everyone for the help!
Excellent outcome Dana! This is exactly the kind of case study we need more of. Utilities banking on customer ignorance of backbilling limits is way too common. Glad the IUB saw through MidAmerican's overreach. I'm adding this to our reference database - Iowa Admin Code 199-19.4(8), 2-year limit from discovery. Well fought!