Small commercial customer was incorrectly billed on Schedule LGS instead of Schedule SGS for 6 months. Alabama Power caught the error and wants $3,200 in additional charges. Alabama has a 2-year backbill limit under Alabama Code 37-4-104, so they're clearly within bounds. Customer is upset but seems like they have to pay. Anyone know if there are exceptions for utility rate schedule errors versus meter problems?
Alabama Power wants 6 months of backbill for rate schedule error
Albert, rate schedule errors are usually treated the same as meter errors under most state statutes. The 2-year limit applies regardless of the type of billing mistake. However, you might check if the customer qualified for SGS based on their actual usage pattern. If Alabama Power misclassified them initially due to incomplete information, there might be grounds to challenge the "correction."
I agree with Cecilia. In Pennsylvania, we've seen cases where the utility's own records show they had the customer's load data but still assigned the wrong rate. If Alabama Power had access to interval data or demand readings that should have triggered proper classification, they might bear some responsibility for the error. Worth investigating before paying the full amount.