I've got a client in Chicago with what looks like a massive rate classification error going back to 2009. They've been on Schedule D-1 instead of D-3 and we're talking about $180K in overcharges. ComEd is claiming they can only go back 24 months per their tariff. Anyone know if Illinois has a statutory limit that overrides utility tariffs? I've seen some states where you can go back further if fraud is involved.
ComEd statute of limitations - how far back for rate errors?
Yuri, in Illinois the general statute is 5 years for contract claims under 735 ILCS 5/13-205. The key is proving the utility had knowledge of the error. If you can show they knew or should have known about the misclassification, the tariff limitation doesn't apply. I've successfully recovered 4+ years on similar ComEd cases. Document everything showing when they should have caught it.
We Energies up here in Wisconsin has the same 24-month tariff language but I've pushed back 42 months on a billing error case. The PSC sided with us because the utility failed to properly monitor the account. What's the load profile look like? Industrial customers have more leverage on classification disputes.
FirstEnergy here in Ohio tried the same 24-month BS on me last year. I filed a complaint with PUCO and got 52 months of refunds. The commission said utility tariffs can't override state law on contract disputes. Your client needs to file a formal complaint with the ICC to preserve their rights while you negotiate.
Thanks everyone. The load is about 2.8 MW peak with 85% load factor so definitely should be D-3. I found meter test records showing ComEd knew the demand was consistently over 1000 kW since 2010. Filing the ICC complaint this week. Jim, did you have to go to hearing or did FirstEnergy settle once you filed?
They settled about 6 weeks after I filed. Once the commission staff started asking questions about their meter reading procedures, they got real cooperative. Make sure you calculate interest too - FERC rate plus 1% in Ohio. Could be another $15-20K on your case.
IPL here in Indiana has been much more reasonable lately. They've been voluntarily going back 36 months on clear errors. But ComEd is notorious for fighting everything. Document the hell out of it and don't take no for an answer. The money is too big to walk away from.
Update: ICC ruled in our favor. ComEd has to refund 54 months back to when they first had actual knowledge of the load characteristics. Total recovery was $197,400 plus interest. Thanks for the advice everyone. The key was proving they had the data to make the correct classification but failed to act on it.