I've been working on what might be the longest statute of limitations case I've ever seen. Large industrial customer in Austin was incorrectly allocated transmission costs under Oncor's wholesale tariff for 72 months. We're talking about $2.3 million in overcharges. Oncor initially claimed they could only go back 24 months but PUCT staff is backing us on the full recovery. Texas has a 4-year statute but we're arguing fraudulent concealment extends it to 6 years. Anyone dealt with transmission allocation errors this complex?
Oncor transmission error - 6 years of overcharges
Nancy, that's an incredible case. Transmission allocation errors are some of the hardest to detect and prove. What evidence do you have of fraudulent concealment? In Tennessee, we need to show the utility actively hid the error or made misrepresentations that prevented discovery. The 6-year extension is tough but possible with the right facts.
Randy, we found internal Oncor emails showing they knew about the allocation error 18 months after it started but decided not to correct it because of the cost impact. They also provided false information during a rate audit that concealed the true transmission costs. PUCT is treating it as intentional misrepresentation which tolls the statute.
Duke Energy tried something similar here in Ohio - they knew about a metering error for 2 years before telling the customer. PUCO ruled it was fraudulent concealment and allowed a 5-year recovery. The key was showing they had an affirmative duty to disclose the error once discovered. Your internal emails sound like smoking gun evidence.
National Grid up here did the exact same thing on a transmission billing case. They discovered the error during an internal audit but decided to wait until the customer found it. The Rhode Island PUC was not amused. We got 54 months of refunds plus penalties. These utilities think they can manage their liability by staying quiet about errors.
Georgia Power pulled the same stunt last year. Internal audit found $400K in transmission overcharges but they buried the report for 14 months. When we finally got discovery, the PSC ordered full restitution plus interest at prime + 2%. The cover-up is always worse than the crime. Nancy, make sure you're asking for penalties too.
Thanks everyone. We're definitely seeking penalties under PUCT substantive rules. The customer relied on Oncor's representations during three separate rate audits where they could have disclosed the error. PUCT staff is recommending $2.3M in principal, $340K in interest, and $150K in penalties. Oncor is screaming but the facts are devastating.
PPL here in Pennsylvania just settled a similar case rather than face a PUC hearing. They knew about billing errors for 8 months but didn't tell affected customers. The settlement included penalties and attorney fees. These utilities are playing with fire when they conceal known errors. The regulators are getting fed up with this behavior.
The pattern is clear - utilities are deliberately concealing errors to limit their exposure. This is fraud, plain and simple. Document every instance where they had opportunities to disclose but chose not to. The extended statutes of limitations are there to prevent this exact behavior. Don't let them get away with it.
Entergy did this to a customer in Shreveport - sat on a $180K error for 10 months until we discovered it during an audit. Louisiana PSC ordered the full recovery plus penalties. These utilities have a duty to act in good faith, and concealing known errors violates that duty. Keep fighting Nancy, you've got them dead to rights.
Final update: PUCT issued their order yesterday. Oncor has to refund the full $2.3 million plus $340K interest plus $150K in penalties. They're also required to implement new procedures for disclosing billing errors within 60 days of discovery. This sets a strong precedent for fraudulent concealment cases in Texas. Thanks for all the support and advice.
Outstanding result Nancy. This case will be cited for years as precedent on fraudulent concealment and extended statutes of limitations. The mandatory disclosure procedures are especially important - other states should adopt similar requirements. Utilities can't be allowed to sit on errors while the clock runs. Congratulations on a huge win for customers everywhere.
This is why our work matters. Nancy just saved a customer $2.8 million that Oncor was trying to keep through deliberate concealment. The ripple effects will help customers across Texas and beyond. When utilities face real consequences for hiding errors, they'll think twice about doing it again. Great work Nancy and thanks for sharing the details.