Got a client here in Cleveland dealing with FirstEnergy trying to backbill 18 months of demand charges they claim were missed due to a meter malfunction. The underbilling is around $47,000 on their industrial account. I thought Ohio had a 12-month limit but FirstEnergy is claiming they can go back 18 months under their tariff Schedule IGS-3. Anyone dealt with this recently? My client is pushing back hard but I want to make sure I have the regulations right.
Ohio backbilling question - FirstEnergy hitting me with 18 months
Frank, you're dealing with PUCO rules here. Ohio Revised Code 4905.30 generally limits backbilling to 12 months, but there are exceptions for meter tampering or utility error that wasn't customer fault. FirstEnergy has to prove the extended period is justified. I'd file a complaint with PUCO if they can't provide solid documentation. Had a similar case in Pennsylvania with PPL where we got it knocked down from 24 months to 6 months.
Frank - Cecilia here from Cincinnati. We see this with Duke Energy Ohio too. The key is whether FirstEnergy can prove customer knowledge or negligence. If it was purely their meter issue and the customer had no way to know, stick to that 12-month limit. Document everything about when the problem was discovered and by whom. The utility has burden of proof on extending beyond statutory limits.
Different state but similar issue - Oklahoma limits to 36 months but only if there's proof of customer fault or knowledge. OG&E tried pulling this on one of my clients for $23K. We fought it down to 8 months by proving they delayed notifying the customer after discovering the meter problem. Documentation timeline is everything in these cases.
Thanks everyone. The meter malfunction was discovered during a routine inspection by FirstEnergy, not reported by customer. Customer had no way of knowing the demand multiplier was wrong. I'm going to push hard on the 12-month limit and threaten PUCO complaint if they don't back down. Will keep you posted on how this plays out.
Frank, also check if FirstEnergy properly followed their own tariff notification requirements. Here in Missouri, Ameren has to provide written notice within 30 days of discovering underbilling or they lose the right to backbill beyond discovery date. Many utilities mess this up and it's an easy way to limit exposure.
Good point Elmer. Georgia Power has similar notification rules under their Schedule GS-4. Frank, if FirstEnergy delayed notification, that could be your ace in the hole. We won a case last year where they waited 4 months to notify after discovery and judge limited backbilling to just 2 months instead of the full year they wanted.
Update on this would be great Frank. These FirstEnergy backbilling cases are getting more aggressive lately. Need to establish some precedents to push back on their overreach.