Sandra from Baltimore. I know the statute of limitations varies by state and utility but I am curious what people have actually recovered in practice. Not what the tariff allows — what you have actually gotten utilities to pay.
How far back can you realistically recover on a rate class error?
Lucille from Pine Bluff. In my territory the tariff says 3 years but I have recovered 5 years twice when I could show the utility's own records documented the error. If their paperwork shows they knew about an issue and failed to correct it the 3-year limit becomes harder for them to defend.
Derek from Charlotte. I have seen anywhere from 2 years to the full 11 years I mentioned in another thread. The key variables are the age of the error, the documentation quality, and how motivated the utility is to settle.
Do utilities ever offer a partial settlement to avoid a full retroactive correction?
Frequently. A utility might say we will give you 2 years and reclassify going forward. Whether you accept that depends on your client's appetite for a longer dispute and your confidence in the full claim.
Phil from Tampa. I always calculate the full retroactive amount before going into any settlement conversation. You cannot negotiate intelligently if you do not know what the full recovery would be. Some partial settlements are reasonable. Some are lowball offers dressed up as compromise.
Derek from Oklahoma City. State PUC rules sometimes extend recovery periods beyond what the tariff says. Worth checking the regulatory framework, not just the tariff, especially on large claims.
That is a really important point about the PUC. I have been looking only at the tariff. Going to start reviewing the state commission's billing rules as well.