Hey everyone, I've got a situation with Southern California Edison that's got me scratching my head. Found a rate classification error on a manufacturing facility in Santa Clarita that goes back to 2014 - they should have been on TOU-8-B instead of TOU-8-A. The difference is about $340,000 over the 10 year period. I know California has some unique recovery rules but 10 years seems like a long shot. Anyone had luck with really old SCE errors?
Edison SCE - 10 year old billing error, any hope?
Gordon, that's a tough one. Most utilities cap refunds at 2-4 years regardless of when the error started. But California does have some consumer protection provisions that might help. Did SCE have any reason to know about the classification error? That could extend your recovery period.
Good point Noel. The facility load profile clearly shows they qualified for 8-B from day one - their demand factor and usage patterns are textbook 8-B. Plus they filed several service requests over the years about high bills that should have triggered a rate review.
I'd definitely pursue this one Gordon. California Public Utilities Code Section 454 gives you some leverage on utility errors, especially when they had constructive notice. File a formal complaint with the CPUC - they're generally more customer-friendly than most state commissions. Document every interaction where the customer questioned their bills.
Randy's right about the CPUC being customer-friendly. I had a case in New Hampshire where we got 6 years on a similar rate misclassification. The key was showing the utility should have known better. $340K is definitely worth fighting for.
Thanks Randy and Yvonne. I'm putting together the CPUC complaint now. Found email records showing the customer complained about summer bills being double what neighboring facilities were paying. SCE's response was just "rates vary by usage patterns" - never actually reviewed the rate schedule.
That's golden evidence Gordon. Shows they had multiple opportunities to catch the error and didn't do their due diligence. Make sure to calculate the interest on the refund too - California allows it from the date of each overcharge.
Already on it Noel. With interest we're looking at over $400K. The manufacturing company is a 40-year customer too - you'd think SCE would want to make this right without a fight.
You'd be surprised Gordon. I've seen utilities fight tooth and nail over obvious errors just because of the dollar amount. But you've got a solid case here. Keep us posted on how the CPUC complaint goes.
Filed the complaint yesterday. CPUC assigned it case number C.24-02-007. Should hear back within 30 days on their preliminary review. Fingers crossed!
Best of luck Gordon. That's a career-making recovery if it goes through. The precedent would help all of us dealing with old rate classification errors too.