Town catches billing error, seven years later
by Christian Avard
2 years ago | 1279 views | 6 6 comments | 10 10 recommendations | email to a friend | print
READSBORO- It took a while to find the error, but they did it. Now the town sewer department is getting some financial relief since an ongoing billing error was discovered, albeit inadvertently.

On June 30, the Public Service Board launched an investigation into Readsboro Electric Utility. The PSB wanted to know why Readsboro Electric billed customers at unusually low rates. When the town began the investigation, they discovered a major discrepancy in the electric department’s billing system.

According to a letter submitted to the PSB, town attorney Eli Emerson wrote that a billing problem occurred from September 2002 to July 2009. During that time “the town sewer department was overcharged for electric service.” Emerson wrote the problem occurred when one of the town’s electric meters “was calculated incorrectly.” The town has six electric meters that measure consumer demand.

During the overcharge period, Emerson wrote that the sewer department was charged $38,424.73, but it was supposed to be charged $3,437.75, a $34,986.98 discrepancy. “The demand meter for the sewer department is read in tenths of kilowatts, but the software was programmed to read the meter in full kilowatts. Thus, the sewer department was overcharged by a factor of ten,” wrote Emerson.

Readsboro’s computer services contractor, the New England Municipal Resource Center, was responsible for the error. Emerson wrote that NEMRC rectified the software problem and the sewer department is now billing for the correct amount. Emerson added the town is currently investigating how the overcharge was dealt with within the the sewer department, and the town will report to the PSB as soon as the investigation is complete.

Deb Kelly was shocked at the length of time it took to find the billing discrepancy. “They didn’t check their own numbers that whole time?” asked Kelly. Selectboard member Craig Bartosewcz said they had no idea “they were chasing kilowatt hours.” He assured Kelly the software is now reading the meter in tenths of kilowatts. “We’re going to do it the fairest way possible now,”

In other news, the selectboard continued their previous discussion with the town listers. At the last selectboard meeting, selectboard chair Raymond Eilers raised a concern about the town listers working overtime. The town listers’ salary budget was set at $16,770 for 2009. According to Eilers’ numbers, the town has spent over $21,516.48 on listers’ salaries. The selectboard asked the listers to cut back on hours, but lister Holly Caruso said that state law does not permit the selectboard to cut listers’ hours.

Eilers explained to Caruso again that the town does not have the money to cover overtime. But due to the recent reappraisal, Caruso said she and town lister Arlene Lefebvre fell behind in their work. Caruso presented the selectboard with a list of all the things the listers need to complete by April 1, 2010. The list includes water and sewer, powerline, and land inspections; updating all computer work in the NEMRC program; fixing errors in the grand list; inputing updated information regarding 2009 land transfers; sorting grievances, record cards, and cost sheets; and transcribing tapes during grievances. “If we don’t do this, we’re derelict in our duties. If we don’t get paid, we can’t do our job,” said Caruso.

The selectboard said they did not know how they would pay the listers. Eilers said all they could do is review the situation. “We still need to tighten our money belts,” said Eilers.

Caruso understood the selectboard “has a budget to protect” but argued “someone has to give.” As of now, Caruso won’t let up. “If you cut back our hours, I’ll need the selectboard to submit a written letter to the state. If the grand list fails, they will shut us down and it will come back (to the selectboard),” said Caruso.

Eilers said the selectboard will respond to Caruso’s concerns at a later date.
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Hop
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September 10, 2009
At last night's Selectboard meeting they revealed their plan to repay the $35,000 overpayment. They plan to pay the Sewer Dept back over four (4) years....The first year will see a payback of $747 a month and that money is to come from the Electric Acct Money Market....In years 2,3 and 4 they will be applying for an additional rate increase of about 3% a year just to generate the $9000 they have to pay back on this issue alone.This does not count any other increase deemed to be needed to keep the Elec Co operating.

1) This payment has to be approved by the Public Service Board.....The Electric Co had to rebate about $10,000 to its users last year, so do you think the PSB will allow this repayment to the Sewer Dept under these conditions? Under this plan, the users get no cash back but the Sewer Fund grows....we should be rebated in the same manner as the Electric rebate was mandated.

2) I feel the Electric Co should take out a $35,000 loan, repay the Sewer Dept and the Sewer Dept then rebate its users for any overcharges paid.

3) Who will be responsible to make sure the Selectboards plan is executed fully and accurately?.....I have my doubts.
Hop
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September 05, 2009
The article alledges that NEMRC software was responsible for the error....take that with a grain of salt. Those services cost the town thousands of dollars annually. Every time somethings entered wrong, calculated wrong or something needs to be adjusted or corrected, they are called in and the last I knew that cost was $90.00 per hour. Their software and services are more of a liability to the town than any help.

For instance, look at surrounding town reports who do not use the NEMRC system and compare it to the mess we have to decipher here in Readsboro every March before Town Meeting.

I dont believe for one second NEMRC is at fault, but their system is not user friendly, not easy to understand and consequently, no good for Readsboro and we should change to another sytem ASAP......oh wait, maybe thats why we dont want it?
Hop
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August 29, 2009
Nothing will be done voluntarily. State agencies will have to be involved, investigate the situation and make mandates to the Town of Readsboro. Will sewer users get reimbursed by the Elec Co?.....not without a mandate and a forced plan for the Elec Co to generate that revenue from their users.

Do you really think the Selctboard will "handle disciplinary actions "? Look at the Board's makeup and personnel that may be involved or accountable and ask yourself if that would ever become a reality?
Debi Kelly
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August 29, 2009
I think at this point we the taxpayers need to request an official investigation into all the meters by an independent outside contractor. Obviously letting the system work just will not do in this case. Past practice has proven that it is not accurate or dependable.

We also must step aside and let the elected Select board handle disciplinary actions that may result from this newly discovered information. However, our voice as taxpayers must be heard. We must present our questions and concerns. I hope to see many more residents at the next Select Board Meeting. The mismanagement of our tax dollars is escalating and more participation is required to encourage our elected officials to act.

Reads Citz
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August 28, 2009
Hop makes a good point. Why didn't the overpaid clerk and her overpaid daughter pick up on this?
Hop
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August 27, 2009
A very interesting article indeed.....but a few points to clarify. The "Town" was NOT responsible for finding this error by any means. I believe this outrageous billing had been questioned for quite some time? The problem is, there was a reluctance on behalf of the town to persue the issue and get to the bottom of it....why? ( your guess is as good as mine ). When there was an indepth evaluation of the Electric Co by both CVPS and GMP when they were submitting proposals to buy, each indicated there was a major problem at that meter. This was back in the early / mid 2007.Was cost a reason not to have the problem checked out? I doubt the fix would have cost $35,000.....What resulted was an exaggerated, inflated local electric cost to operate the Sewer Plant if the Electric Co was sold....was that the reason to sweep it under the carpet? If it wasnt for the intervention of the Public Service Board, nothing would have been addressed to date. So where does that leave us now? If the Sewer Plant's users were overbilled $35,000 by the Elec Co,and the Elec Co is basically operating month to month with no cash flow, how will that $35,000 be reimbursed back to the sewer users from the Elec Dept? According to my calculations, each sewer user would have been overbilled about $19.00 a year for eight (8) years and be due a rebate of approximately $152 plus any penalty or interest that might be added on.....will the Elec Co have to add on another 12% to their increase of 24.46% to pay everyone back?.....Another issue I have is if the Sewer Plant motor was overcharged by a factor of 10X.....was someone undercharged by that same 10X factor to "make the books balance"?.....time will tell !