Client got hit with massive demand backbill from Georgia Power going back to 2004. They claim transformer ratio was wrong and demand readings were under-recorded by 50%. Now they want $47,000 for 8 years of underbilled demand charges under Schedule PL-1. I thought Georgia had a 2-year limit on backbilling but their rep is citing some transformer error exception. Anyone dealt with this before? The client is a small manufacturer in Marietta and this could put them under.
Georgia Power trying 8-year backbill - legal?
Derek, Georgia does have the 2-year rule but utilities can go back further if they can prove customer tampering or meter/transformer errors that weren't the customer's fault. The key is whether your client knew about the ratio issue. If they reported problems or had any indication the readings were wrong, GP might have a case. I'd pull all service records and look for any work orders mentioning the transformer ratio.
Had similar case with Duke Energy here in Charlotte. They went back 5 years on a CT ratio error but we negotiated down to 24 months by arguing the customer had no way to know about the utility's equipment error. Document everything showing your client acted in good faith - timely payments, no tampering, reported any service issues promptly. Also check if GP followed proper notification procedures for the billing adjustment.
Georgia's tariff allows extended backbilling for "utility error in metering equipment" but customer has right to dispute. File formal complaint with GA PSC immediately - they're pretty reasonable on these cases. Meanwhile, demand detailed calculation showing exactly how they derived the 50% adjustment factor. Often utilities use rough estimates that don't hold up under scrutiny.
Update: Found the smoking gun in GP's own records. They had a work order from 2006 noting "CT ratio discrepancy requires investigation" but never followed up. Customer had no knowledge of this. Filed PSC complaint yesterday citing utility negligence. Thanks for the advice everyone - will keep you posted on outcome.
Excellent work Derek! That work order is huge evidence. In California we see similar issues with PG&E dragging their feet on equipment problems then trying to backbill customers years later. The utility's own delayed response should limit their recovery period. Hope GA PSC sees it the same way.
Sounds like you've got a solid case. Keep us posted on the PSC ruling - always good to know how different states handle these utility error situations. The precedent could help other members facing similar backbill disputes.