Hey everyone, I've got a commercial client in Springfield who just received a backbill from Empire District Electric for 14 months worth of demand charges they claim were missed due to a meter reading error. The total is $18,400 and they're demanding payment within 30 days. I thought Missouri had limits on how far back utilities could go for their own mistakes. Does anyone know the specific statute or PSC rule that governs this? This seems excessive especially since it was their equipment failure that caused the undercharging.
Empire District backbilling 14 months - is this legal in Missouri?
Elmer, you're right to question this. In Missouri, the PSC rules generally limit backbilling to 12 months for utility errors under 4 CSR 240-13.055. Empire going back 14 months is overreach. I'd file a complaint with the PSC immediately and reference that specific rule. Here in St. Louis I've seen Ameren try similar stunts and the commission usually sides with the customer when it's the utility's fault. Don't let them bully your client into paying the full amount.
Pam's absolutely right about the 12-month rule in Missouri. I dealt with a similar case with Ohio Edison where they tried to backbill 16 months. The key is proving it was their error, not customer tampering or negligence. Make sure you document everything about the meter failure and get copies of all maintenance records. The PSC complaint process is your best bet - Empire knows they're pushing the limits here.
What type of meter was involved? If it was an older electromechanical meter that failed, that's clearly their maintenance issue. If it was a newer smart meter with communication problems, that's still their responsibility. Tennessee has similar rules - 12 months max for utility errors. The burden should be on Empire to prove when exactly the error started, not just assume it was 14 months.
Thanks for the responses everyone. It was a digital demand meter that apparently had a CT ratio issue - the meter was reading but not capturing the demand properly. I've requested all the maintenance logs and am preparing the PSC complaint. The client is a small manufacturer who depends on accurate billing to budget their operations. This kind of surprise backbill could seriously hurt their cash flow.
CT ratio problems are definitely utility maintenance issues. We see this with PECO occasionally here in Philadelphia. Document that your client was paying bills regularly and had no reason to suspect undercharging. Also check if Empire provided any notice during their testing or maintenance that might have revealed the problem earlier. If they knew about CT issues and didn't address them promptly, that strengthens your case for limiting the backbill period.
One more thing Elmer - make sure to request interest calculations if they do get to backbill anything. Missouri rules require utilities to pay interest on customer overpayments, so the reverse should apply. Even if you end up owing something, you shouldn't be penalized with interest for their equipment failure. Good luck with the PSC complaint!
Great point about the interest Pam! Filed the PSC complaint yesterday and Empire has already contacted us about "working something out." Sounds like they know they're on shaky ground with the 14-month demand. I'll update everyone once this gets resolved. Thanks for all the help!