Has anyone dealt with Montana-Dakota Utilities on statute of limitations issues? I have a client in Fargo who's been getting billed under the wrong rate schedule for over 3 years. Should have been on Schedule C-2 but they've been on C-1, resulting in about $15,000 in overcharges. MDU is claiming they can only adjust back 12 months per their tariff. This seems unreasonably short compared to other utilities.
Montana-Dakota Utilities refusing to go back more than 12 months
Anita, that does seem short. Here in Idaho, Idaho Power typically goes back 2-3 years for billing errors. Have you checked North Dakota PUC rules? Sometimes state regulations override utility tariff limitations, especially for utility mistakes vs customer disputes. Rate schedule errors are definitely utility responsibility.
I've had similar issues with Black Hills Energy here in South Dakota. They initially claimed 1 year limit but when I escalated to the PUC, they found state law allows 3 years for utility billing errors. Check NDCC Chapter 49-02 - that's where most utility statutes are in North Dakota. Don't let them get away with arbitrary tariff limitations.
Thanks Joanne and Warren. I found NDCC 49-02-22 which says utilities can collect back billing up to 4 years, so the reciprocal should apply for refunds. Filed a complaint with the ND PSC citing this statute. MDU's 12 month limit seems to violate state law.
Good find on that statute Anita. Here in Oklahoma, we've successfully used similar arguments with OG&E and PSO. If they can back-bill you for years, they should be able to refund for the same period. The reciprocity argument usually works with commissioners who understand fairness.
That's exactly right Susan. Alabama Power tried the same thing with a client in Huntsville - claimed 18 months was their limit. But Alabama PSC rules clearly state 4 years for utility errors. These companies hope customers and even auditors won't know the actual law. Always research state regulations, not just tariffs.
Update: ND PSC staff agreed with my interpretation. MDU is now reviewing bills back to October 2015. Should recover around $18,500 total. The key was citing the specific state statute that allows 4 years for utility collection, therefore same period should apply for refunds.
Great outcome Anita! I'm dealing with Pacific Power in Oregon on a similar issue. They're claiming 24 months but Oregon PUC rules say 3 years for billing adjustments. These utilities really count on people not knowing the actual regulations vs their internal policies.
This is why I love this forum - practical advice that saves real money. I had Duke Energy in Ohio try to limit me to 2 years last year, but after reading similar threads here, I researched Ohio law and got them to go back 4 years. Knowledge is power in these negotiations.
Clyde, you're absolutely right about utilities counting on ignorance. Here in Arizona, APS tried to tell me 2 years was "industry standard" until I showed them their own tariff actually says 4 years for billing errors. Always read the fine print and know your state regulations better than they do.
One more tip - keep detailed records of when you first discovered the billing error vs when it actually started. Some states start the statute clock from discovery date, not error start date. This can add significant time to your recovery window, especially for complex billing mistakes that take months to identify.