Norm from Des Moines here. I'm working on a case where MidAmerican Energy apparently didn't physically read a commercial meter for 18 months. They kept sending estimated bills based on historical usage, but the business had shut down after 6 months. The final true-up bill was zero usage, meaning they collected $14,000 in payments for electricity that was never consumed. How is this legal? Don't utilities have an obligation to read meters within a reasonable timeframe?
MidAmerican Energy missed reads for 18 months - how is this legal?
Susan from Oklahoma City - OG&E has similar issues but usually catches up within 6 months. Eighteen months is outrageous. In most states, utilities are required to read meters at least quarterly for safety and accuracy reasons. The Iowa Utilities Board should have regulations about maximum estimation periods. Did MidAmerican provide any explanation for why they never read the meter?
They claim the meter was 'inaccessible' but can't provide any documentation of attempted reads. The business owner says nobody ever contacted them about meter access issues. I suspect it was just poor route management and the account fell through the cracks. The $14,000 refund should be straightforward, but I'm also pushing for interest and penalties for their negligence.
Definitely pursue the interest - 18 months of collecting money for services not provided is essentially an interest-free loan they took from your client. Most state regulations require utilities to pay interest on overcharges beyond a certain threshold. The Iowa Utilities Board website should have the specific requirements for refund interest calculations.