Need some advice from the veterans here. MLGW in Memphis missed actual meter reads for one of my clients for 4 straight months (March through June 2024). They were estimating based on prior year which was way low because the business expanded. Now they want $18,500 in catch-up charges all at once on the July bill. Client can't afford that kind of hit to cash flow. The usage is legitimate - I verified the actual meter readings myself. What's the best approach to negotiate a payment plan or spread this over several months?
MLGW missed reads for 4 months - now huge catch-up bill
Bobby, I know this situation well working with MLGW clients. First thing - verify they're not charging any late fees or interest on the catch-up amount since this was their error, not the customer's. MLGW usually offers payment arrangements for large true-up bills. Call their commercial customer service and ask for a 6-month payment plan. Document that the missed reads were due to their error.
Chris here, also Memphis based. Randy's right about the payment plan option. I've had good success with MLGW on these situations. Also check if the estimates they used were "reasonable" under their tariff. If the estimates were way below actual usage due to known business changes, you might have grounds to argue they should have adjusted the estimation method.
Been dealing with MLGW for over a decade. The key is showing the hardship the lump sum would cause. Get a letter from the client's accountant or banker explaining the cash flow impact. MLGW is generally reasonable about payment arrangements when the error was on their end. Also verify the actual meter readings they're using - sometimes they make errors in the catch-up calculation too.
Had similar issue with Montana-Dakota Utilities up here in Bismarck. Four months of missed reads, then a huge true-up. The utility agreed to spread it over 12 months with no interest since it was their fault. Key was documenting that we requested actual reads multiple times during the estimation period.
Bobby, also make sure MLGW isn't double-billing any portion. I've seen cases where utilities mess up the catch-up calculation and bill some usage twice. Get a detailed breakdown showing exactly what periods are being trued up and verify against your own records.
Payment plan is definitely the way to go. Here in St. Louis, Ameren usually offers up to 24 months for large true-up bills caused by their errors. The key is showing good payment history and that this is a hardship situation. Don't let them treat it like a normal past due balance.
Document everything about when you first noticed the estimates and any attempts to get actual reads. Rocky Mountain Power here in Utah has similar policies - they'll work with customers when the billing delay was utility error, not customer fault.
Bobby, also check MLGW's tariff on estimated billing. Most utilities have maximum time limits for estimates before requiring actual reads. Four months might exceed their own policy, which gives you more leverage in negotiations.
Thanks everyone for the great advice! Met with MLGW commercial services yesterday. They agreed to a 8-month payment plan with no interest or penalties since it was their error. Also confirmed no double billing issues. The key was showing our payment history and the cash flow impact letter from the client's CPA. Really appreciate this forum - saved my client's business!
Excellent outcome Bobby! This is exactly why we do this work - protecting clients from utility billing errors and their financial impact. Great job documenting everything and pushing for a fair resolution. MLGW generally is reasonable when you present the facts professionally.