Guys, I need some advice. We're auditing a large apartment complex in Tulsa and found evidence of meter tampering on the master meter serving buildings 4-6. OG&E's usage history shows a 35% drop in consumption starting in March 2020, but the tenant count actually increased. Property management swears they don't know anything about it. The monthly bill went from $28,000 to $18,500 average. Anyone dealt with utility theft on this scale?
Master meter tampering at 320-unit complex - OG&E investigation
Rick, that's serious stuff. Duke Energy here in Charlotte has a dedicated theft investigation unit. The penalties for commercial meter tampering can include criminal charges plus back-billing with interest. Have you contacted OG&E's investigation department yet? They usually want to be involved before you document everything.
Wayne's right about contacting the utility first. We had a similar case with RG&E in Rochester - 180-unit complex with bypassed CT cabinet. The utility investigation found $47,000 in stolen power over 18 months. Property owner claimed ignorance but still got hit with the full back-bill plus 25% penalty. Document everything with photos before calling OG&E.
Already got photos and meter readings. The bypass is pretty sophisticated - someone knew what they were doing. There's a jumper wire around the CT secondary that's been painted to match the conduit. You'd miss it unless you were looking for it. Property manager is acting nervous when I ask questions about maintenance access to the meter room.
Rick, be very careful about your liability here. If this turns into a criminal case, your audit documentation could be evidence. Make sure your client understands the potential exposure. OG&E might come after the property owner for the full amount regardless of who actually did the tampering.
Susan's absolutely right about liability. I've seen cases where the auditor got dragged into litigation because they didn't handle the discovery properly. Contact OG&E immediately and let them take over the investigation. Your job is to identify billing errors, not investigate theft. Document what you found, report it, and step back.
Randy, good point. I called OG&E this morning and they're sending an investigator out Thursday. They told me not to disturb anything else at the site. The property management company is probably going to terminate our contract once this hits the fan. At least I'll have done the right thing.
Rick, you definitely did the right thing. Word gets around in this business and utilities remember who cooperates with investigations vs who tries to cover things up. This might cost you one client but it'll build credibility with OG&E for future work. Keep us posted on how the investigation goes.
Had something similar with PacifiCorp in Oregon last year. Property owner got hit with $63,000 back-bill for stolen service. Turned out it was the maintenance contractor who did the bypass to reduce his monthly utility allowance from the owner. Criminal charges were filed. The utility investigation took 4 months but they got to the bottom of it.
Update: OG&E finished their investigation. Maintenance contractor confessed to installing the bypass in February 2020. Property owner is facing a $89,000 back-bill with penalties. They fired the contractor and are considering a lawsuit against him. OG&E investigator said this was one of the most sophisticated bypasses he's seen in residential service.
Rick, thanks for following up with the resolution. That's a costly lesson for the property owner about vetting contractors. $89k is serious money that could have funded a lot of legitimate energy efficiency improvements. Glad OG&E was able to get to the truth. Cases like this make us all look more credible when we find legitimate billing errors.