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Bad Estimate Fever Is Spreading

10/27/2014

5 Comments

 
An Indiana utility is apologizing to its customers after failing to read electric meters for months, then issuing gigantic "catch up" bills when finally performing an actual meter read.

Remind you of anyone?

Vectren's excuse is that its meter reading contractor simply quit reading meters at the end of its contract period when it knew it would not be receiving a new contract.  The company says that the 400 customers affected can pay their gigantic bills in smaller increments, without interest.

The company has "put a formal communications plan in place."  This means they're spinning and trying to downplay the true magnitude of the problem.

The Courier Press says the problem is much bigger than Vectren has admitted.
The Courier & Press began investigating this issue after receiving a call from a local business owner on Friday concerned that her bill had tripled without warning.

Vectren initially said that more bills than usual were estimated over the summer because the company switched meter reading contractors, and it was changing the readers’ routes.

“Without getting into specifics, there are challenges that happen with any contractor transitions,” Hedde said Tuesday morning. She added that the anonymous caller’s high bill was likely atypical.

“I don’t want to give the impression that that is normal,” Hedde said. “She is experiencing something hopefully that is an anomaly.”

But response to a Courier & Press’ Facebook post showed the issue was widespread. Hundreds of people replied to the post with stories of bills that were several times what they expected.
The Courier & Press characterizes the problem as affecting "thousands" of customers.

The Indiana Regulatory Commission doesn't seem to see this as a problem.
But mistake or no, customers whose bills were underestimated must pay up, said the Indiana Utility Regulatory Commission.

“They are responsible for it,” said Natalie Derrickson, a spokeswoman for the Indiana Utility Regulatory Commission. “At this point, if a customer feels like their bill was estimated and they have larger bills than they were expecting, their first step should be to contact Vectren. If the customer feels like the issue is not resolved, they should contact us.”
This utility failure probably couldn't come at a worse time of year for struggling families.  No Christmas this year, kiddies, Mommy & Daddy have to pay the electric bill instead!

Seems to me that if the problem was caused by a contractor that did not live up to its legal obligations, then Vectren and/or the affected customers have a clear course of action.  Unless... maybe Vectren isn't being honest about this and is scapegoating a contractor they no longer do business with?

You'd think the Indiana Regulatory Commission would at least want to get to the bottom of this.

At any rate, the Courier & Press wants to know what the people think -- Should utilities be permitted to estimate customers’ bills for periods longer than one month?

As we found out here in West Virginia when thousands of customers were abused in exactly the same fashion by FirstEnergy, meters should be read every month.
5 Comments
Incompetence is our friend
10/28/2014 12:54:35 am

Perversely, the worse these jokers perform the more likely the whole corrupt system of captured by regulated may come crashing down.

Reply
Captain Trips
10/28/2014 03:10:05 am

waaa waaaa.

Where were all the complaints when electricity bills were LOWER than expected. Clearly there's a problem with timing and accuracy. But people shouldn't expect that they'd get their power for free.

No Christmas this year, kiddies, Mommy & Daddy spent the money they should have saved from the lower power bills on beer and cigs.

And, as in the First Energy situation, be careful of what you ask for. If you ask for monthly meter readings, you'll have to cover the extra expense in your power rates.... (although 17.2% seems a bit high for meter readers). Smart meters would be the way to go. No estimates, no meter readers.

And the company said that they could pay what they owe in smaller increments - interest free! So they get an interest free loan that they have to pay back. Sign me up!

So, to summarize:

waaaa waaaa.

Reply
Keryn
10/28/2014 03:26:38 am

Now, now, Cap'n, I expected better from you. Did you read the linked article? Some folks were truly "in the dark" about how much they should owe. Consumers depend on their monthly bill amount to tell them how good they're doing with their power use. Most never bother to look at the kWh consumed, or match the estimate with an actual read they do themselves. These consumers were getting incorrect signals from Vectren, but when it's less than expected, nobody wants to question it. It's only when it's higher than expected that the examination begins. I know this probably doesn't apply to you, but the vast majority of Amerika lives from paycheck to paycheck, or social security check to social security check. When their bill is lower, they may attribute cooler summer weather, deployment of energy efficiency measures, less time at home, new appliances, new lightbulbs, whatever. They think they've done something good... and the money they would have spent gets applied elsewhere. That money is long gone (whether beer and cigarettes, or diapers and medications, or maybe just a night out). Now they are faced with outrageous bills they cannot pay. That's a problem for many people on fixed or low incomes. The utility failed here, and it probably violated its tariff when it did. I don't think anyone is asking for free electricity here, however, this problem needs to be investigated to stop it from recurring.

Nobody asked for monthly reading at consumer expense in the WV case. We asked for monthly readings at company expense for one year to expunge inaccurate data upon which future estimates would be based. The monthly reading mandate at consumer expense came from our captured PSC.

Consider yourself fortunate that monthly electric bills that can vary hundreds or thousands of dollars (surprise!) wouldn't cause a financial hardship at your house.

Reply
Comrade Tripsky
10/28/2014 03:50:47 am

et tu, brute?

Really? "Amerika". Really?


Oh, and yeah, many of your comments are probably fairly accurate, more or less, give or take. And here in America we're allowed to voice our opinions.

Reply
Keryn
10/28/2014 04:59:37 am

Well, in Amerika, you pay what the electric company bills you and you never ask question. You're not entitled to fair and accurate bills.

BTW, I do like your idea for smart meters. Unfortunately, when that was brought up in the WV case, the Commissioners were like deer in the headlights. But, but, but... that would mean RATE INCREASES to pay for smart meters (never mind rate increases for monthly reads), and if they were truly smart meters then consumers might take control of their consumption with real-time pricing and make smarter choices to use less electricity during peak. That would cut into the utility bottom line! Horrors! So, here in WV, we're going to rely on dumb meters and just barely above minimum wage contract meter readers using their own personal hoopties to traverse our narrow roads and mountain communities... well for as long as they stick around, which is usually not long past the training period, as soon as something else comes along.

So, shall we move on to topics we can agree on... oh, like maybe how power markets are failing consumers?

Reply



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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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