City Corrects Electric Billing Error

Oct 4 2018 /

Released by City of Milford

The City of Milford is correcting an error that led to residential utility customers being charged approximately seven percent more for electric usage during “summer” months.

“We sincerely apologize for this mistake. We will make this right and reimburse all customers as soon as possible,” stated City Manager Eric Norenberg.

Only residential rates were affected, not commercial or industrial rate schedules.

City staff discovered the error late Friday afternoon and began working immediately to address the mistake. The incorrect usage charge in the rate tariff affected the summer billing period that runs from June 1 to September 30. Utility rates are set by City Council, and they will be asked to correct the rate tariff next week so that refunds can be made can be made as quickly as possible.

An updated three-year rate design implemented in 2017 was designed to lower electric rates. The summer 2018 rate should have been less than the summer of 2017.

City staff is actively working with the billing system provider to calculate the refund due to each individual customer based on their electric usage during the summer period. Depending on their billing cycle, residential electric customers that were overcharged will have refunds appear as a credit on bills arriving in later in October or in November. Any customers that disconnected service during this period will receive a refund by check. The mistake cost a typical customer consuming 750 kWh monthly about $10 each month during the summer billing period.

“We know that this was a pretty hot summer and summer rates are normally higher anyway due to increased demand. This error compounded those effects and we apologize for the mistake and the inconvenience this caused our customers,” stated Norenberg.

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