If billings for electric service are found to differ from the Cooperative’s lawful rates for the service being purchased by the member, or if the Cooperative fails to bill the member for such service, a billing adjustment shall be calculated by the Cooperative.
If the member is due a refund, an adjustment shall be made for the entire period of the overcharges. If an overcharge is adjusted by the Cooperative within 3 billing cycles of the bill in error, interest shall not accrue. Unless otherwise provided in this section, if an overcharge is not adjusted by the Cooperative within 3 billing cycles of the bill in error, interest shall be applied to the amount of the overcharge. The interest rate shall be based on average of prime commercial paper rates, for the previous 12-month period. Interest on overcharges that are not adjusted by the Cooperative within 3 billing cycles of the bill in error shall accrue from the date of payment, unless the Cooperative chooses to provide interest to all of its affected members from the date of the bill in error. All interest shall be compounded annually. Interest shall not apply to budget billing plans or estimated billings. Interest shall not apply to undercharged amounts unless such amounts are found to be the result of meter tampering, bypass, or diversion by the member. Interest on undercharged amounts shall also be compounded on an annual basis and shall accrue from the date the member is found to have first tampered, bypassed or diverted energy from the meter. If the member was undercharged, the Cooperative may backbill the member for the amount which was underbilled. The backbilling is not to exceed 6 months unless the Cooperative can produce records to identify and justify the additional amount of backbilling or unless such undercharge is a result of meter tampering, bypassing or diversion by the member. However, the Cooperative may not disconnect service if the member fails to pay charges arising from an underbilling more than 6 months prior to the date the Cooperative initially notified the member/consumer of the amount of the undercharge and the total additional amount due, unless such undercharge is a result of meter tampering, bypassing or diversion by the member. If the underbilling is $25 or more, the Cooperative may offer the member a deferred payment plan option for the same length of time as that of the underbilling.