Working with a restaurant chain here in San Antonio and CPS Energy is trying to backbill 5 years worth of demand charges totaling $180,000. They claim the meters were under-reading due to tampering but my client swears they never touched anything. Texas statute 186.007 says maximum 4 years but only with clear evidence of tampering or fraud. CPS is being really aggressive on this. Anyone fought CPS Energy on backbilling recently?
Texas backbilling limits - CPS Energy claiming 5 years on commercial account
Jorge - Vivian from Corpus Christi here. AEP Texas pulled similar nonsense with one of my clients last year. The key is making them prove actual tampering versus meter malfunction. Demand forensic analysis of the meters and review their maintenance records. If they can't show physical evidence of tampering, fight the fraud allegation hard. Texas PUC usually sides with customers when utilities can't prove their case.
Different state but we see this with Portland General Electric too. Oregon limits backbilling to 3 years maximum. The burden is always on the utility to prove tampering occurred. Get copies of all meter reading records, maintenance logs, and inspection reports. Look for gaps or inconsistencies that suggest utility negligence rather than customer fault.
Jorge, have you checked if CPS followed proper notification procedures? Tennessee Valley Authority here has to notify within 60 days of discovering underbilling or they forfeit rights to extended backbilling. Many Texas utilities have similar tariff requirements they often violate.
Good point Paula. CPS discovered the issue during a routine inspection in March but didn't notify my client until June. Their tariff Schedule B-6 requires notification within 30 days. That could limit their backbilling to just discovery date forward. Also getting a forensic analysis of the meters - initial report suggests mechanical failure, not tampering.
Jorge, Alabama Power tried this same tactic with a client in Huntsville. They claimed 6 years of underbilling due to tampering but forensic analysis showed meter gear wear, not deliberate tampering. We got it reduced to 18 months and they had to eat the rest. Document everything about meter condition and maintenance history.
The notification delay alone should kill most of their claim. Here in Kansas, Westar Energy lost a major backbilling case because they waited 5 months to notify after discovery. Judge ruled they waived right to backbill beyond notification date. Texas PUC has similar precedents.
Jorge, also check CPS Energy's inspection and maintenance records for that location. FPL down here in Miami got caught in a similar case where they hadn't inspected meters in 8 years then claimed customer tampering. Judge threw out the whole backbilling claim due to utility negligence.
Solid advice here. Xcel Energy in Colorado has tried similar overreach. The forensic analysis is key - most meter 'tampering' cases are actually equipment failures or installation errors. Make CPS prove intent to defraud, not just underbilling occurrence.
Update: Forensic analysis came back showing bearing wear in the meter mechanism, not tampering. Combined with their notification delay, we're demanding they limit backbilling to 6 months from discovery date. CPS is now trying to negotiate rather than fight it. Thanks for all the advice - the notification angle was key.
Great outcome Jorge! These utilities count on customers not knowing the rules. The notification requirements are in most tariffs but rarely enforced until someone pushes back. Good precedent for future CPS Energy cases.