Quick question for anyone who's dealt with TVA disputes. I've got a customer in Nashville who was overbilled for 3 years due to an incorrect power factor penalty. TVA is claiming federal law limits recoveries to 24 months. I thought state statutes of limitations still applied to billing disputes even with federal utilities. Anyone know the precedent here?
TVA statute question - federal vs state law?
Ed, I dealt with a similar TVA case about 2 years ago in Knoxville. The federal courts have held that state contract law still applies to billing disputes unless specifically preempted by federal regulation. TVA can't just claim federal immunity from state statutes of limitations. What's the total exposure on the power factor penalties?
Terry's right - TVA tried the same argument with me on a demand billing case in Memphis. I cited Tennessee's 6-year statute for contract claims and they backed down. The key is that billing disputes are contractual, not regulatory. File a complaint with FERC if they won't cooperate - they don't like utilities hiding behind federal status to avoid paying valid refunds.