Memphis Light, Gas & Water Division, a Division of the City of Memphis v. Auburndale School System

OPINION

HERSCHEL P. FRANKS, Special Justice.

The issue presented by this appeal is whether a customer is required to pay for all electricity consumed where the utility has, for a number of years, negligently under-billed the customer.

The circuit judge awarded the utility a judgment for $32,316.29. In a split decision, the Court of Appeals reversed, the majority holding the utility was equitably estopped from collecting all but the last six months of the under-billed charges.

The operative facts are not in dispute. In July, 1976, the customer commenced construction of a new building on its…