Question for the Tennessee folks - I'm seeing different approaches to statute limitations between MLGW here in Memphis and utilities in TVA territory. MLGW seems to follow standard 6-year contract statute but some TVA distributors are claiming federal preemption limits them to shorter periods. Anyone have experience with statute issues in TVA territory? Trying to figure out if there's actually a legal difference or if some utilities are just being difficult.
Tennessee statute question - MLGW vs TVA territory differences
Randy, I've dealt with this in Knoxville with KUB (TVA distributor). They tried the federal preemption argument but it doesn't hold water for billing errors. TVA's federal charter doesn't override state contract law for distributor-customer relationships. I successfully got KUB to go back 5 years on a demand ratchet error just last month. The key is distinguishing between rate challenges (which might have federal issues) and billing corrections.
Terry, that's exactly what I was thinking. This is a straightforward billing error where they applied the wrong rate schedule for 3 years. Customer should have been on Schedule MSB instead of GSB, difference is about $2,800/month. No rate challenge involved, just wrong tariff application. Which KUB department did you work with on your case?
I worked directly with their Revenue Services manager. Skip the regular customer service folks - they don't understand the legal issues. Present it as a tariff misapplication requiring correction under Tennessee contract law. I also referenced similar cases with other TVA distributors to show it's standard practice.
Interesting discussion. I'm in Huntsville with Huntsville Utilities (also TVA) and they've never given me the federal preemption argument. Always honored the 6-year Alabama statute. Maybe it depends on the individual utility's legal counsel? Some might be more aggressive in trying to limit exposure than others.
Albert, that's a good point. Could be utility-specific rather than a systematic TVA territory issue. I'll try Terry's approach and go straight to Revenue Services with the contract law argument. Appreciate the insights from both of you - always helpful to know what's working in similar situations.
Just wanted to add that in West Virginia, our TVA-adjacent utilities (not direct TVA but similar federal connections) have tried the same preemption arguments. It's usually just a negotiating tactic. Stand firm on state contract law and most will cave when they realize you know what you're talking about.
Wanda, good to know it's not just a Tennessee thing. Sounds like utilities nationwide are trying various arguments to limit their exposure on older billing errors. The federal preemption angle is creative but legally questionable for standard billing corrections.
Update on my KUB case - they approved the full 5-year correction this week. Total refund of $67,000 plus interest. Definitely worth pushing back on their initial 2-year offer. Randy, I'd be happy to share my documentation approach if your case is similar.
Terry, that's fantastic! $67K is definitely worth the extra effort. I'd love to see your documentation approach - my case is very similar with the wrong rate schedule application. I'll send you a PM with my contact info. Thanks for sharing the success story.
Randy, PM sent with my case summary and key documentation points. The Revenue Services manager at KUB was actually pretty professional once I presented everything properly. Good luck with your case!