READSBORO- The saga of Readsboro Electric continues. In the past week, The Deerfield Valley News Web site was abuzz with conversation about the upcoming Public Service Board meeting. The “Board plans hearing on Readsboro Electric” article from the November 5 weekly edition had over 50 comments, and it seemed that residents had a lot to say about the utility and the upcoming meeting. But when state officials came to hear what the public had to say, only two people spoke up.

Wednesday’s public hearing gave residents the opportunity to provide input regarding Readsboro Electric’s 24.46% rate increase and the current investigation regarding a possible deviation from approved rates and accuracy of refunds. Andrea McHugh, utilities analyst and PSB hearing officer, and June Tierney, PSB attorney, listened to testimony provided by Readsboro residents. Teddy Hopkins was the first to speak.

Hopkins said he “reluctantly” supported the current rate increase, due mostly to increased power supply and repair costs associated with the operation and maintenance of Readsboro Electric’s transmission lines. However, Hopkins expressed concern regarding an overbilling of the town’s sewer plant, which may be affecting Readsboro utility users. Hopkins understood the selectboard would pay back the sewer plant in increments over the next year, but he disagreed with the set-up. “The Readsboro sewer users and the Readsboro electric users in town are not the same group of individuals,” said Hopkins. “There are dozens more people on the electric grid than on the sewer collection system. Thus, for a period extending back to January 2003, the sewer plant users are subsidizing the electric ratepayers.”

Hopkins asked the PSB who is going to keep track of the debt, “especially when elected selectboard members come and go?” He added the selectboard also received a petition to have another vote on the Readsboro Electric sale. The vote would take place on Town Meeting day in 2010. Hopkins said if they approve the sale, the PSB “may lose legal jurisdiction over the town of Readsboro activities” and “have no legal recourse to ensure PSB-approved payback schedule.” Hopkins suggested the PSB insist that Readsboro Electric seek a loan to pay back the sewer plant in full.

Hopkins added it wasn’t the first time Readsboro Electric overcharged its customers. Hopkins said, in 2002 Tom Dente, of the Readsboro General Store, was overcharged and had to be compensated for the billing error. Hopkins said the same problems are happening again. “This same type of error raised its ugly head again in 2009 concerning the sewer plant billings,” said Hopkins.

Hopkins asked the PSB to conduct an independent review of Readsboro Electric meter readings, data entry, billings, and accounts receivable. He also asked the PSB to instruct Readsboro Electric to perform a yearly audit of wholesale kilowatts purchased vs. kilowatts billed. “This yearly audit along with the proper amount of line loss should assist the electric department in discovering any future miscues and should be made public,” said Hopkins.

The second and last person to testify was Larry Hopkins. Like his brother Teddy, Larry Hopkins questioned Readsboro Electric’s refunding mechanisms. Hopkins claimed Readsboro Electric required PSB approval prior to issuing credits or rebates to utility users, but the town issued them anyway, without the PSB’s approval. “Did local officials not comply with (PSB mandate) and not supply (the PSB) with its plan prior to issuing credits? What type of follow-up was required by PSB? This may have never come to light,” said Larry Hopkins.

Hopkins also expressed concerns regarding the $35,000 overcharge to the sewer department. According to Hopkins, town attorney Eli Emerson told the town that the $35,000 billing error was discovered in July 2009. However, Hopkins claims that Green Mountain Power and Central Vermont Power Supply knew about the problem much earlier. “Green Mountain Power and CVPS indicated in 2007, when they were doing their evaluations to purchase the utility, that there was something drastically wrong with the billing,” said Hopkins.

Hopkins also queried whether the Vermont Public Power Supply Authority’s raw power costs had anything to do with the 24.46% rate increase and the decision to keep Readsboro Electric in the town’s hands. Hopkins claims VPPSA’s power costs increased 17.46% after the re-vote was defeated. “Does anyone find it odd that VPPSA’s untimely increase in power costs just happens to coincide with the vote to sell the electric company?” asked Hopkins.

Rod Caruso didn’t officially testify before the PSB, however he asked the PSB if there was any money left over in the electric company coffers. “If so, then I don’t see why we need an increase, you should look into that,” said Caruso.

The hearing adjourned after ten minutes. McHugh and Tierney could not comment on the hearing because the case is pending before the PSB.