Laserfiche WebLink
CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of May 19, 1992 <br />TO: Honorable Mayor and City Council <br />FROM: Gale A. Drews, Electric Utility Direct <br />SUBJECT: Utility Billing Error at Rancho Mediterrania Date: May 12, 1992 <br />Mobile Home Estates <br />BACKGROUND Rancho Mediterrania Mobile Home Estates is served by the City of Colton <br />Electric Utility with a single master electric meter which records electric <br />consumption for all mobile homes as well as common use areas. The City of Colton <br />sends a single electric bill to Rancho on a monthly basis. <br />STATEMENT OF PROBLEM Beginning June, 1990, two electric bills were mailed to <br />Rancho. One bill properly charged for electric service at Rancho. The second bill <br />was based on a reading of a second electric meter which had been installed earlier <br />and was read but not billed before June, 1990. No billings should have been made <br />from this second meter. This error was found in September, 1991. <br />Customer Service Policy 19 of the Colton Electric Utility states "Overcharges shall <br />not be recomputed and credited to any account for a period in excess of six months <br />prior to the discovery of an error, or the date the bill was questioned, whichever <br />occurs earlier." In following this policy, Rancho was credited $72,104.84 for <br />overcharges which had occurred. <br />Overcharges in the amount of $86,798.55 which occurred from June, 1990 to January, <br />1991 were not credited since these overcharges occurred during a period in excess of <br />six months prior to the discovery of the error. Rancho has requested that <br />overcharges occurring during this period be credited to Rancho. <br />ALTERNATIVES The alternatives are to: 1) credit Rancho $86,798.55 for overcharges <br />which occurred from June, 1990 to January, 1991 or 2) not credit Rancho for <br />overcharges which occurred during this period and face probable litigation over the <br />matter. <br />FINANCIAL IMPACT None. The Utility has collected for KWH's that were never used, <br />therefore there was no cost involved in providing that service. <br />RE(`"ffZMATION Overcharges which occurred during the period from June, 1990 to <br />January, 1991 were the result of a second erroneous bill sent to Rancho. Due to the <br />nature of the overcharges, staff recommends that Rancho be credited $86,798.55 for <br />overcharges which occurred during the period from June, 1990 to January, 1991. <br />CITY MANAGER'S CONCURRENCE <br />Attachments: <br />Page t of 1 <br />13 <br />Item No. <br />