Quick question for the group - I'm working on a case here in Memphis with MLGW and found some potential overcharges going back to 2007. The client wants to know how far back we can reasonably expect to recover. Tennessee law seems murky on this and MLGW's tariff doesn't spell it out clearly. Anyone dealt with similar situations with municipal utilities in Tennessee? The potential recovery is around $45K so worth pursuing if we can get more than just 2-3 years back.
Tennessee statute question - how far back for MLGW?
Amir, municipal utilities are tricky because they often aren't subject to the same state commission rules. In Arizona, our municipal utilities typically follow a 3-year limitation but it varies by city ordinance. For MLGW specifically, I'd check their customer service regulations - they should have something filed with the city council. Also worth checking if there's a state law that applies to municipal electric utilities generally. Don't give up on that $45K without a fight!
I had a similar case with Indianapolis Power & Light a few years back. Indiana law actually allows up to 6 years for contract claims, but the utility tried to argue their tariff limited it to 3 years. We ended up settling for 4 years back which was about $32K recovery. The key was proving the overcharge was an ongoing billing error, not a one-time mistake. Document everything showing it was systematic.
Down here in Charlotte, Duke Energy's tariff specifically states 2 years for billing disputes, but North Carolina law allows longer for certain types of claims. The trick is characterizing it properly - is it a billing error, breach of contract, or something else? Amir, I'd also check if MLGW has any specific customer complaint procedures that might extend the timeline. Municipal utilities sometimes have different rules buried in city ordinances.
ComEd up here in Chicago has a 2-year limitation in their tariff, but Illinois law provides for longer periods in certain circumstances. The Illinois Commerce Commission has ruled that systematic billing errors can go back further. I'd suggest filing a complaint with whatever regulatory body oversees MLGW - sometimes that process has different time limits than just asking the utility directly.
Thanks everyone. I found MLGW's customer service regulations and they do limit billing adjustments to 24 months unless there's fraud or meter tampering. However, I'm arguing this was a systematic misapplication of their Schedule GSA rate which should fall under contract law. Filed a formal complaint with the city council yesterday. Will keep you posted on how it goes.
Good strategy Amir. Here in Dallas, Oncor has similar language but we've had success going back 3-4 years when we can show the utility knew about the error but failed to correct it. Document any correspondence where they acknowledged the issue. That can extend the limitation period significantly.
Update us when you hear back from the city council. This could set a useful precedent for other MLGW cases. Municipal utilities often think they can hide behind short limitation periods, but contract law usually trumps tariff provisions when there's a systematic error involved.