I've got two similar cases in Ohio, one with FirstEnergy and one with AEP Ohio, both involving demand ratchet billing errors going back about 6 years. FirstEnergy is saying 4 years maximum under Ohio's general contract statute, but AEP is claiming they'll go back 6 years "as a matter of policy." The amounts are significant - $34,500 with FirstEnergy and $41,200 with AEP. Anyone know why there might be different approaches between these utilities?
Ohio SOL confusion - FirstEnergy vs AEP different approaches
Frank, I've seen this difference too. AEP tends to be more flexible on older cases, maybe because they've had fewer major billing system changes over the years. FirstEnergy went through all those mergers and acquisitions so they might be more defensive about old records. The legal SOL in Ohio is definitely 4 years under ORC 1302.98 for UCC contracts.
Different companies, different risk tolerance. Down here Entergy will sometimes go back 5-6 years on clear billing errors while Cleco sticks rigid to 3 years. It often comes down to their internal legal counsel and how aggressive they want to be. Jim's right about the 4-year Ohio limit being the legal maximum though.
That makes sense about the merger history. FirstEnergy has definitely been through a lot of changes with the Toledo Edison, Ohio Edison, and Cleveland Electric acquisitions. AEP Ohio has been more stable. I guess I should just be happy that AEP is being reasonable and push FirstEnergy harder on the 4-year legal limit.
Exactly Frank. With FirstEnergy, emphasize that demand ratchet errors are ongoing billing mistakes, not one-time contract disputes. Each month they bill the wrong ratchet amount it's a new cause of action. That might get you closer to the 4 years instead of whatever shorter period they're trying to claim.
Update: FirstEnergy came around to the full 4 years after I cited several Ohio court cases about ongoing billing errors. Ended up getting $31,800 instead of the $34,500 but that's pretty close considering the 4-year cutoff. Sometimes persistence pays off with these utilities.