Ken from Lincoln. Utility acknowledged a rate class error, agreed the recovery amount is $31,000, but now says they will issue the refund as a credit applied to future bills over 24 months rather than as a lump sum. My client wants the money now. Is this a standard practice and what leverage do I have to push for a lump sum?
Utility admitted the error but wants to spread the refund over 24 months
Lee from Rochester. It is standard practice for some utilities — they hate large lump sum payments because of accounting and regulatory optics. But standard does not mean required. Check the tariff for language about how refunds are issued.
The tariff is silent on refund method. Just says the utility shall issue a refund.
Then the tariff is on your side. A credit applied to future bills is not a refund — it is a credit. If the tariff says refund and the utility wants to give a credit, that is a distinction worth raising formally.
Andy from Columbus. Also look at your state PUC's billing rules. Many commissions have rules about refund timelines and methods that supersede individual tariff silence. If the PUC rules require cash refunds within 30 days that conversation with the utility becomes very short.
I did not think to look at the PUC rules separately from the tariff. Going to check that today.
Donna from Oklahoma City. I had a similar situation. Utility offered 12-month credit spread. I cited the PUC rule requiring cash refunds within 45 days of a confirmed overbilling. They issued a check within two weeks. The rule existed, they just hoped nobody would look it up.
Lee again. Always look up the PUC rules. The tariff is only part of the regulatory framework. The commission's billing regulations often have more teeth than anything in the tariff itself.