GAE just responded to the billing issue with the following

Updates:
        Status: WorkAsIntended

Comment #1 on issue 10108 by jbelmo...@google.com: dedicated memcache 
billed all at once
http://code.google.com/p/**googleappengine/issues/detail?**id=10108<http://code.google.com/p/googleappengine/issues/detail?id=10108>

The billing table in the dashboard reflects the accounting done to manage 
your app's daily spend.  For resources billed in units of time like 
dedicated memcache, for the purposes of daily spend the assumption is made 
that you'll have the resource enabled for the remainder of the day.  Hence 
17.17 hours reflects the time from when you enabled dedicated memcache 
until midnight.

Your actual dedicated memcache usage will be reflected correctly in the 
daily billing usage report on the usage history page.


Once again, GAE missed the point.

By inaccurately showing MEMCACHE billing during the day and declaring works 
as intended, the app is at risk of being stopped when the billing is 
reached.

I had to up my daily billing because of their bug.

While we are on inaccurate real time billing ... they also do not add the 
bandwidth charges during the day ... another bug they will undoubtedly call 
works as intended.

On Sunday, October 6, 2013 11:57:02 AM UTC-7, James Gilliam wrote:
>
> GAE has drastically changed the way MEMCACHE works; as a result my 
> application (ogeekcom) overall usage jumped by approximately 5 times with 
> the same approximate bandwidth output.  Like a 400% increase in price.
>
> Specifically, they are purging shared memcache very aggressively -- 
> possible in an effort to force people to signup for paid memcache.
>
> As a result of this change, my application is using many more datastore 
> reads and many more instances to compensate for the poor memcache 
> performance.
>
> Like always, this was done without any announcement at all.
>
> If they made this change to increase make applications cost more to run, 
> it is illegal.  
>
> There is no problem with them offering a premium service for memcache, but 
> it is illegal to degrade the previous service to force people into the paid 
> model.
>
>

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