Got a nasty surprise today - Duke Energy Carolina is trying to backbill my client $18,400 for what they claim was a CT ratio error going back 4 years. I thought NC had a 12-month backbilling limit under their regs. Anyone familiar with NC Commission Rule R8-13? The meter department is claiming this falls under their 'discovery of fraud or tampering' exception but there was clearly no tampering here, just their own metering error.
NC Duke Energy trying 4-year backbill - is this legal?
Karen, you're absolutely right about the 12-month limit in NC. R8-13 is pretty clear on this - utilities can only backbill for 12 months unless there's proven fraud or tampering by the customer. A CT ratio error on their end definitely doesn't qualify. I dealt with Georgia Power on a similar issue last year and they backed down when we cited the specific regulation. File a formal complaint with NCUC if Duke won't budge.
Had the exact same thing happen with KUB here in Knoxville. They tried a 3-year backbill for a multiplier error and we shut it down citing Tennessee's similar 12-month rule. The key is getting them to admit in writing that it was their equipment failure, not customer negligence. Document everything and don't let them intimidate you with their 'standard practice' nonsense.
Wisconsin has the same 12-month protection under PSC 113.0406. WE Energies tried to pull this on one of my industrial clients for $34K and we beat them. The fraud exception is very narrowly defined - has to be willful customer action, not utility error. Get a copy of Duke's tariff filing with NCUC, bet they don't even mention 4-year backbilling authority.
Thanks everyone. I pulled the tariff and you're right Linda - no mention of extended backbilling periods. Filed the NCUC complaint today. Duke's account rep is already backing down, claiming it was just their 'initial assessment'. Amazing how fast they change their tune when you cite actual regulations.
Xcel up here in Minnesota pulled similar garbage last year. They wanted 30 months of backbilling on a demand multiplier that THEY programmed wrong during a meter change. State law limits it to 24 months max, and only 12 for utility error. Sometimes I think they just throw out big numbers hoping customers won't fight back.
IPL tried the same thing here in Indiana - wanted 36 months on a CT error they admitted was their fault. IURC regs are crystal clear: 12 months for utility error, 24 months max even with customer negligence. Filed with the Commission and got it reduced to 8 months actual underbilling. These utilities need to be held accountable for their own mistakes.
Update on this thread - Karen, did NCUC rule in your favor? I've got another Duke Energy case brewing and could use the precedent. They're claiming a 2-year backbill on what's clearly their transformer bank miscalculation. Getting tired of fighting the same battles over and over.