Heads up for anyone with clients who have taken utility efficiency rebates.
Client received about 14,000 in rebates in 2021 for high-efficiency washers under a prescriptive
program. Machines had problems, manufacturer disputes, and they were pulled and replaced in 2024 with
a different brand.
Utility is now clawing back a prorated portion of the rebate, citing a five-year measure life
provision in the program terms the client signed and clearly never read. Amount is about 5,600.
Two things worth knowing. First, these clawback provisions are in most prescriptive program
agreements and almost nobody reads them, including me until this week. Second, the replacement
equipment is also high efficiency and appears to meet the same program spec, but the utility's
position is that the specific units that earned the rebate had to remain in service, not equivalent
units.
I think the client loses this on the contract language. Where I think there may be room is arguing
the replacement satisfies the intent of the measure life provision. Anyone fought one of these?
Client received about 14,000 in rebates in 2021 for high-efficiency washers under a prescriptive
program. Machines had problems, manufacturer disputes, and they were pulled and replaced in 2024 with
a different brand.
Utility is now clawing back a prorated portion of the rebate, citing a five-year measure life
provision in the program terms the client signed and clearly never read. Amount is about 5,600.
Two things worth knowing. First, these clawback provisions are in most prescriptive program
agreements and almost nobody reads them, including me until this week. Second, the replacement
equipment is also high efficiency and appears to meet the same program spec, but the utility's
position is that the specific units that earned the rebate had to remain in service, not equivalent
units.
I think the client loses this on the contract language. Where I think there may be room is arguing
the replacement satisfies the intent of the measure life provision. Anyone fought one of these?