The Georgia PSC approved Georgia Power's rate increase last month and the implementation has been a disaster. They're supposed to phase in the new Schedule PL-1 rates over six months but I'm seeing accounts billed at full new rates immediately. The tariff clearly states that existing customers should receive graduated increases of 8% in month one, 15% in month two, etc. Instead, several of my Atlanta clients got hit with the full 23% increase right away. One shopping center's bill jumped from $31,000 to $38,100 in September when it should have been $33,480 under the phase-in schedule. Anyone else seeing this problem?
Georgia Power rate case creating billing nightmares
Rachel, I'm seeing the exact same thing in Birmingham with Alabama Power. They implemented similar rate increases in July and completely botched the billing transition. The phase-in schedule under Rate Schedule LPL was ignored for at least 40% of my commercial accounts. I think these utilities are using the rate case approvals as cover to implement full increases immediately, hoping customers won't notice or complain. I've filed formal complaints with Alabama PSC on six accounts so far. The documentation clearly shows they violated their own approved tariff schedules. Total overcharges I've identified exceed $67,000 just in the past three months.
This is why I always maintain copies of the actual PSC orders, not just the utility's summary letters. FirstEnergy did something similar in Ohio in 2011 and it took six months of fighting to get proper refunds. The key is documenting exactly what the commission approved versus what the utility implemented. Rachel, do you have copies of the specific Georgia PSC order language about the phase-in schedule? If the utility is violating explicit commission directives, the PSC usually responds quickly once you point it out with proper documentation.
Jim, I have the complete PSC Order No. 125847 with all exhibits. Section III clearly mandates the six-month phase-in for existing customers on Schedule PL-1. I've already sent detailed letters to Georgia Power's regulatory affairs department with bill-by-bill documentation showing the violations. They responded with form letters claiming their billing is correct, but the math doesn't lie. I'm preparing to file complaints with the PSC this week. The pattern is too widespread to be accidental - this looks like intentional non-compliance to boost revenue during the transition period.
I can confirm similar issues with Nashville Electric Service, though their rate increase was smaller. They were supposed to implement a 12% increase over four months but applied the full amount immediately to about 30% of commercial accounts. The billing department blamed it on "system conversion issues" but offered immediate corrections once I provided documentation. Rachel, you might have better luck going directly to Georgia Power's commercial customer service manager rather than regulatory affairs initially. Sometimes they can fix obvious errors faster than the formal complaint process. I recovered $23,400 for one client just by showing them their own tariff language.
Update: Georgia Power finally responded to my complaints and acknowledged "billing system errors" affected approximately 2,300 commercial accounts statewide. They're issuing credits on December bills for overcharges dating back to August. My clients are receiving total credits of $94,200, which validates the audit approach. Ed's suggestion about contacting customer service first was good advice - they expedited the review once they realized the scope of the problem. This reinforces why we need to stay vigilant during major rate transitions. Utilities often struggle with implementation and hope customers won't notice the errors.