Minneapolis Water Works has been issuing estimated bills for a client, then when they finally read the meter they're backdating the actual usage to previous billing periods and charging penalties. Customer got hit with $1,400 in retroactive charges plus late fees. This seems wrong but I can't find anything in their tariff that prohibits it. Anyone dealt with this before?
Water utility backdating meter reading estimates - legal?
Donna, Seattle Public Utilities tried this exact same thing with us in 2016. We fought it through their appeals process and won. The key argument was that estimated bills create a contract - you can't retroactively change the terms. Also check if they sent proper notice about the meter access issues. Most tariffs require 30 days notice before penalties kick in.
This is total BS. Salt Lake City tried something similar and we threatened legal action. You can't estimate low, then true up with penalties. That's not how utility billing works. File a complaint with the Minnesota PUC immediately. Document everything - dates, amounts, who you talked to. Don't let them steamroll your client.
Connie's absolutely right about documenting everything. I had a similar case with Raleigh water where they were backdating corrections without proper notice. The city attorney backed down when we showed the pattern of improper billing. Key is proving they didn't follow their own tariff procedures. Most water utilities have weaker legal departments than electric companies.
Thanks everyone. I've been digging into the Minneapolis tariff and found something interesting - Section 4.2 says estimated bills become final after 90 days if the customer had reasonable access to the meter. My client has been providing access for two years. This might be the smoking gun we need.
Donna, that's exactly the kind of language you need to hang them with. Atlanta does something similar - estimates become binding after 60 days with proper access. Water utilities bank on customers not reading the fine print. Push hard on this and make them prove the access issue was legitimate. Most of the time it's just lazy meter readers.
The access issue is huge. Nashville Water had a habit of marking meters as "inaccessible" when they were just behind a fence. We started requiring photos and GPS logs from their meter readers. Amazing how many suddenly became "accessible" again. Don't let them use vague excuses to justify bad billing practices.
Terry brings up a great point about documentation. I always tell clients to take monthly photos of their own meters if access has been an issue. Creates a paper trail that's hard for utilities to dispute. Also check if they're using AMR or still doing manual reads - different rules often apply.
Bobby, they're still doing manual reads which is part of the problem. I've advised the client to start photographing the meter monthly. Filed the PUC complaint yesterday with all the documentation. Will update everyone on how it goes. This forum is invaluable for these kinds of issues.
Donna, curious how this turned out. Dealing with something similar in Tulsa where PSO is doing the same thing with water submetering at apartment complexes. The property management company is getting killed with retroactive adjustments. Thinking about using your case as precedent if you won.
Rick, I've handled several of these water utility backdating cases and they're usually winnable if you have good documentation. The key is proving the utility didn't follow their own procedures. Most state PUCs will side with customers when utilities try to retroactively change billing terms without proper notice. Happy to share some template complaint letters if it would help.