Louisville Gas & Electric has been hitting commercial accounts with "fiber optic connectivity fees" ranging from $234-$892 per month. They claim it's for "enhanced grid communication infrastructure" but I've confirmed with three clients that no fiber optic equipment was ever installed at their facilities. This appears to be pure revenue generation disguised as infrastructure investment. Anyone else in Kentucky seeing this?
LG&E fiber optic billing scam - watch out Kentucky folks
Jack, I'm not seeing this with Tennessee Valley Authority here in Knoxville, but your description sounds like the "smart meter communication fees" that some utilities tried to sneak through a few years back. Have you checked if these charges were approved in LG&E's last rate case?
Terry, great question. I've been digging through Kentucky PSC filings and can't find any approval for these specific fiber charges. LG&E's 2014 rate case mentioned "communication infrastructure investments" but nothing about billing customers directly for fiber connectivity they're not receiving.
That's your smoking gun right there. If the PSC didn't specifically approve these charges as part of their rate structure, LG&E is operating outside their authorized tariffs. I'd file complaints for all affected clients immediately.
Filed complaints with the Kentucky PSC for seven accounts totaling $67,400 in questionable charges. LG&E's response was that they're "updating billing systems to better reflect infrastructure investments." That's utility-speak for "we got caught making stuff up."
Jack, document everything they tell you about "updating billing systems." That's basically an admission that their current billing is incorrect. Should help your case significantly.
Update - Kentucky PSC ruled in favor of my clients. LG&E has to refund all fiber optic charges going back 24 months plus 6% interest. Total recovery was $89,200 across seven accounts. Sometimes the system actually works! Thanks for the encouragement Terry.