Colleagues, I'm dealing with a frustrating situation where NorthWestern Energy is bundling water and sewer charges on the same bill but applying different rate schedules and billing periods. The water portion is monthly while sewer is quarterly, but they're calculating late fees on the combined total. Customer can't figure out what they actually owe each month. Anyone else seeing this kind of bundled billing confusion?
NorthWestern Energy Montana water/sewer bundling issues
Marilyn, that's a common problem with utilities that provide multiple services. Here in Memphis, MLGW does gas, water, and electric on one bill but at least they use consistent billing periods. The key is making sure they're applying the correct tariff for each service type. Bundled billing shouldn't change the underlying rate structures or payment terms for individual services.
Randy makes a good point about consistent application. We've had issues here in Missoula where different service components have different due dates but the utility applies late fees to the entire bill if any portion is late. That's usually a violation of their own tariff provisions. Each service should stand alone for billing and collection purposes.
Noel, that's exactly what's happening! They're treating it like one big bill but the water and sewer have completely different terms and conditions. The sewer portion allows 45 days to pay while water is standard 30 days, but late fees kick in at 30 days for everything. Seems like they're picking and choosing which terms to apply based on what generates more revenue.
This is interesting because up here in Alaska with municipal utilities, we see similar bundling issues but usually with electric and heating fuel. The solution is usually requesting separate billing for each service type. Most utility commissions require utilities to offer separate billing if customers request it, even if there's a small administrative fee involved.
Oscar brings up a good option. Separate billing eliminates the confusion but some utilities charge extra for multiple bills. In this case, the administrative fee might be worth it if the customer is getting hit with incorrect late fees or having trouble tracking payments. Also makes auditing much easier when each service has its own clear billing statement.
Great suggestion Oscar! Requested separate billing and NorthWestern agreed without any additional fees. Turns out they were incorrectly applying the shorter payment terms to both services when bundled. Customer is getting a refund of $890 in late fees that were improperly charged over the past year. Sometimes the simple solutions work best.
Excellent outcome Marilyn! This is a perfect example of why bundled billing can create more problems than it solves. When utilities try to combine services with different terms and conditions, something usually gets lost in translation. Separate billing might seem like more paperwork but it's often cleaner and more transparent for everyone involved.