Just wrapped up a billing audit that'll make your blood boil. 156-unit apartment complex in Springfield has been getting billed on Ameren's Schedule LGS (Large General Service) for THREE YEARS instead of the correct Schedule SGS (Small General Service). The property's peak demand never exceeded 45 kW but somehow got classified as large general service with a minimum demand charge of 100 kW. Overcharge totaled $47,324 and Ameren is only offering to refund 24 months. Anyone dealt with Missouri PSC on billing error disputes?
Ameren Missouri billing error on master-metered complex - $47K overcharge
Elmer, that's highway robbery! Alabama Power tried something similar on a client in Mobile. The key is proving the utility had knowledge of the correct load characteristics. Do you have copies of the original service application or any load studies? If the property management provided accurate load information and Ameren still misclassified it, you might have grounds for full recovery plus interest through the PSC.
This is exactly why I tell all my clients to review their rate schedule annually. Oncor here in Texas has been notorious for "upgrading" customers to higher rate classes without proper notification. Elmer, check if Missouri has any statutory requirements for utility notification before rate classification changes. In Texas, they have to provide 30 days notice for any rate changes that increase the bill by more than 10%.
Nancy's right about the notification requirements. California has similar rules under PUC Section 739.5. Elmer, you should also look at Ameren's tariff language regarding billing error corrections. Most utility tariffs limit refunds to 12-24 months, but if you can prove negligence or misrepresentation, you might get the full amount. The fact that they applied LGS rates to a property that never hit the minimum demand threshold is pretty damning.
Great points everyone. I found the original service application from 2010 where the property manager clearly stated "150-unit apartment complex, estimated demand 35-40 kW." Ameren's own engineer signed off on SGS classification initially. Then in early 2011, they switched it to LGS with no explanation or notification. I'm filing a complaint with Missouri PSC this week. The utility's own records prove they knew the correct classification.
Elmer, that's a smoking gun right there. ComEd pulled similar shenanigans on a client in Chicago - had them on Rate 6L (large commercial) when they should have been on Rate 6S (small commercial). The PSC forced full refund plus 8% annual interest when we showed the original application. Document everything and demand the full three-year refund. Don't accept their 24-month offer.
Following this thread with interest. IPL here in Indianapolis has been aggressively reclassifying apartment complexes to higher commercial rates. Elmer, when you file with the PSC, make sure to request interest on the overcharge. Missouri PSC typically awards prime rate plus 2% on utility billing errors when negligence is proven. That could add another $3-4K to your recovery.
This thread is why I love this forum. Elmer, similar situation here in North Dakota with Otter Tail Power. They had a 48-unit complex on Schedule C-2 (>50kW commercial) when actual demand was only 28kW. The key was proving they had accurate load information from day one. Sounds like you've got that covered. Push for the full refund - utilities bank on customers accepting partial settlements.
Update: Missouri PSC ruled in our favor! Full three-year refund of $47,324 plus interest at prime + 2% = $52,180 total recovery. The key evidence was Ameren's own service application showing they knew the correct rate classification from the beginning. PSC found the utility violated their obligation to bill customers on the most advantageous rate. Thanks everyone for the encouragement to fight the full amount rather than settle.
Fantastic result Elmer! That's a big win for all of us. AES Indiana (formerly IPL) has been pulling the same tricks here in Indianapolis. Your case sets great precedent that utilities can't just "upgrade" customers to higher rates without justification. Mind sharing how long the PSC process took from filing to final order? I've got a similar case brewing.
Greg, the whole process took about 7 months from initial complaint to final order. The utility tried to drag it out but PSC staff was very thorough in their investigation. Key timeline: Filed complaint August 2013, utility response September, discovery through November, staff report January 2014, final order February. Having solid documentation from day one definitely expedited things. Happy to share more details offline if helpful for your case.