Working on a client account with Knoxville Utilities Board and noticed they've started adding a 2.75% 'municipal fee' that wasn't there six months ago. No tariff reference, just shows up as a line item. Client's September bill jumped $127 because of this. Has anyone else in Tennessee seen KUB doing this? Trying to figure out if this is legit or if we need to challenge it.
KUB adding mysterious 'municipal fee' - anyone seen this?
Terry, I've seen similar stuff with Ohio Edison lately. They call it a 'franchise recovery charge' but it's not in their filed tariffs either. Sounds like utilities are getting creative with fee names to avoid regulatory scrutiny. I'd definitely file a complaint with the Tennessee PUC on this one.
We challenged Georgia Power on something similar last year - they were calling it an 'administrative assessment.' Turns out they were double-billing franchise fees that were already embedded in their base rates. Got $23,000 back for my client over 18 months of overbilling. Document everything and demand they show you the tariff authorization.
Rachel's right about the documentation. Duquesne Light tried this nonsense with a 'municipal surcharge' in 2011. We found out they were already recovering franchise fees through their distribution charge. Commission ordered refunds plus interest. These utilities think we're not paying attention to their billing games.
Thanks everyone. I pulled KUB's filed tariffs and there's zero mention of any municipal fee. Going to file with the TN PUC tomorrow. Client has three facilities so we're looking at potentially significant money if this has been going on for months. Will update you all on what we find.
Had FirstEnergy pull the same stunt in Cleveland - called it a 'franchise cost recovery.' Took six months of fighting but we proved they were already recovering these costs in their base rates. Got refunds for eight clients totaling $45,000. Don't let them get away with this double-dipping.
CPS Energy tried something similar in San Antonio but they at least filed it properly with the city. Still bogus in my opinion - these franchise fees are supposed to be part of doing business, not a separate line item to gouge customers. Keep us posted Terry, this could be happening everywhere.
Update from Georgia - just found out Georgia Power is trying to reinstate their 'administrative assessment' under a different name. These utilities never give up. Going to be a constant battle to keep them honest on franchise fee recovery.