Just had AEP Texas try to hit my client with a $47,000 backbill going back 5 years on a demand meter error. I told them Texas has a 3-year statutory limit under PURA 39.107. They're claiming some exception for "fraud or theft" but this was clearly their metering equipment failure. Anyone else dealt with AEP on this? They seem to think they can ignore state law.
Texas 3-year backbill limit - AEP trying to go back 5 years!
Marcus, you're absolutely right on the 3-year limit. I've fought this battle with AEP multiple times here in San Antonio. The fraud/theft exception only applies when there's actual evidence of customer tampering or bypassing the meter. Equipment failure on their end doesn't qualify. File a complaint with the PUC immediately - case number and everything. AEP usually backs down once the commission gets involved.
California has similar issues with PG&E trying to exceed our 2-year limit. The key is documenting that it was utility error, not customer action. Get the meter test records and maintenance logs. If they can't prove the customer caused the problem, the statutory limit applies. Don't let them intimidate you with their legal department threats.
We see this constantly in North Carolina with Duke Energy. They love to claim "customer tampering" without any proof. The burden is on THEM to demonstrate fraud occurred. Simple meter malfunction or incorrect multiplier settings are utility responsibility. Document everything and don't accept their first answer. Most utilities will settle rather than face a formal hearing.
Tennessee Code 65-4-401 gives us 4 years, but TVA tries the same games. Had one case where they backdated a commercial rate change and wanted 6 years of "corrections." Told them to pound sand. The statute is clear - utility errors are limited to the statutory period regardless of how much money is involved.
Arizona gives utilities 3 years under A.R.S. 40-321, but APS and SRP push it constantly. They'll claim the meter was "accessible for tampering" as if that proves anything. Stand firm on the statutory limits. The legislature set these timeframes to protect customers from endless utility fishing expeditions.
Update: Filed the PUC complaint and AEP immediately offered to settle for $18,000 covering just 3 years. Still fighting it because their own records show the CT ratio was wrong from installation. Thanks everyone for the backup on the statutory limits. These utilities count on customers not knowing their rights.
Great outcome Marcus! That's exactly how these cases should go. The fact they settled proves they knew their 5-year claim was bogus. Keep us posted on the final resolution. These precedents help all of us when dealing with utility overreach.