Opinion ID: 2237187
Heading Depth: 1
Heading Rank: 13

Heading: Refund Recipients: Historical v. Current Customers

Text: We next consider that portion of the May 1986 stay order which required Edison to pay refunds to the customers who actually paid the illegal Rate Order I rates (historical customers) to the extent practicable. We conclude that, in view of the unique facts present here, the trial court abused its discretion in ordering Edison to pay the refund to historical customers. The evidence in the record persuasively demonstrates that it is neither economical nor efficient to pay the refunds to historical customers. Before Edison could issue refund monies to historical customers, it would be required to determine which customers actually paid the overcharges, the amount which should be refunded to each customer, and the last known mailing address of each customer. According to the evidence, at any given time Edison has approximately 3 million customers. Since mid-1986, approximately half of the historical customers have moved, some more than once and some to locations outside of its service area. Edison would therefore be required to process approximately 378 million records to ascertain the information necessary to award a refund to historical customers. Edison would then be required to issue and mail approximately 2 million refund checks to historical customers at their last known address. Many, however, may not live at their last known address and, therefore, would not even receive the refund checks. Thus, awarding refunds to historical customers would be inefficient, time-consuming and extremely costly, and would provide no guarantee that many of the customers who paid the Rate Order I rates will receive their portion of the refund. Furthermore, the cost of administering a refund in this manner would have to be taken out of the refund amount, thereby reducing the amount available for refund to ratepayers. In light of the above, we agree with the appellate court that the illegal overcharges should be refunded to current, rather than historical, customers in the form of a credit. Awarding refunds to current customers would entail minimal administrative expense and would ensure that the refunds are made as promptly as possible. In balancing the equities of this case, we conclude that the portion of the stay order which required Edison to pay refunds to historical customers is inequitable not only to Edison, but also to ratepayers and will not necessarily protect ratepayer interests. Accordingly, we reverse that portion of the order and remand to the circuit court with directions to order the refunds to be paid to current customers in the form of a credit.