Dealing with Duke Energy here in Charlotte on a power factor billing error that goes back 3 years. They're claiming their tariff only allows refunds for the past 12 months even though the error was entirely their fault - wrong CT ratio on the meter installation. Has anyone else run into Duke taking this hardline position lately? The client is out about $85,000 beyond the 12-month window.
Duke Energy NC - refusing refunds past 12 months
Derek, Duke has been getting more aggressive about limiting refunds across their territory. Had a similar fight in Georgia last year. The key is proving they had constructive notice or that the error was due to their negligence. A wrong CT ratio definitely falls into that category.
We see the same thing with other utilities trying to use tariff language to override state contract law. In Texas, we typically get 4 years on utility billing errors regardless of what their tariff says. File a complaint with the NCUC - they don't like utilities playing games with legitimate refunds.
Thanks Angela. The frustrating part is this was a brand new service installation - Duke set the meter up wrong from day one. Customer has been overpaying for power factor penalties on equipment that actually has good power factor. It should have been caught during commissioning.
That's even worse Derek. New installation errors show clear utility negligence. In Connecticut, Eversource has to refund from the service start date when they screw up the initial meter setup. Duke shouldn't be any different.
Exactly Vince. We have the original work order showing they installed 400:5 CTs when the service called for 800:5. It's right there in their own records. I'm putting together the NCUC complaint this week.
Derek, make sure you request the full service file including all inspection records. Sometimes you'll find they had multiple chances to catch the error and didn't. That really strengthens your case for full recovery.
Good point Jack. Already requested everything through discovery. Also found they did a "routine inspection" 18 months ago and somehow missed the wrong CT ratio. Their field tech either didn't do his job or didn't know what to look for.
That's your smoking gun right there. If they had a chance to catch it during inspection and didn't, Duke has no grounds to limit the refund period. The NCUC should rule in your favor.
Following this thread with interest. We deal with MLGW here in Memphis and they're usually pretty reasonable on refunds when they make installation errors. Duke should be held to the same standard.
Thanks everyone for the input. Filed the NCUC complaint yesterday as case E-100, Sub 135. Should hear back within 60 days. I'll post an update when we get a ruling.
Best of luck Derek. These installation error cases should be slam dunks but utilities always want to fight them. Looking forward to hearing how it turns out.
Derek, just saw the NCUC issued an order in your favor! Congratulations on getting the full 3-year recovery. Sets a good precedent for the rest of us dealing with Duke.
Thanks Rachel! Yes, NCUC ruled that installation errors warrant full recovery regardless of tariff limitations. Duke has to refund $127,000 plus interest. Great precedent for future cases.