Found some serious demand billing errors on a client's FirstEnergy account going back to 2005. The overcharges are substantial - maybe $40K total. Ohio has a 4-year statute for contract claims but I've heard some auditors have gotten utilities to go back further on their own billing errors. Anyone had success pushing FirstEnergy beyond the 4-year mark? This is a manufacturing facility in Youngstown with multiple meters under Schedule TOU-P.
Ohio statute of limitations - can I go back 8 years on FirstEnergy?
Jim, in my experience FirstEnergy will sometimes negotiate on older claims if you can show gross negligence or fraud. The key is proving they knew about the billing error and continued charging incorrectly. Four years is the safe zone but I've gotten settlements for 6-7 year lookbacks when the documentation was solid. What type of demand billing error are you seeing?
Derek, it's a classic case where they're billing coincident demand instead of non-coincident under the TOU-P tariff. The tariff language is crystal clear but they've been doing it wrong since the customer switched to this rate in 2005. I have all the interval data showing the actual peaks versus what they billed. Difference averages about $800/month.
That's exactly the type of case where you might get them to go back further. If the tariff language is unambiguous and they've been consistently applying it wrong, that could be considered systematic billing error rather than just a contract dispute. I'd document everything thoroughly and present it as a billing correction rather than a refund claim. Sometimes the framing makes all the difference.
Jim, I'm also in Ohio and had a similar case with AEP last year. They initially refused anything beyond 4 years but when I threatened to file with PUCO they agreed to 6 years. The regulatory threat sometimes works better than legal arguments. FirstEnergy has been pretty reasonable in my dealings with them, especially if you can show pattern billing errors.
Thanks everyone. I'm going to compile a detailed analysis showing the systematic nature of the error and present it as a billing correction first. If that doesn't work, I'll mention the PUCO option. The customer is patient since we're talking about real money here - even 4 years gets us $38,400 in overcharges.
Keep us posted on how it goes. Always good to know what FirstEnergy's current position is on older claims. Good luck!