READSBORO- One year ago, Readsboro Electric requested a 30.76% rate increase to cover its operations and maintenance costs. The Public Service Board has given its approval and ratepayers will see a change in their bill payments this month. Despite the go-ahead, the PSB also discovered four billing errors that triggered a Department of Public Service investigation. As a result, Readsboro Electric was held accountable.

On August 14, 2009, Readsboro Electric filed with the PSB proposed tariff revisions requesting an overall increase in its rates in the amount of 24.46% on a service-rendered basis. The selectboard added a nominal 5.06% increase to cover additional costs until the DPS stepped in.

On September 17, 2009, the DPS recommended that the PSB conduct an open investigation into Readsboro Electric’s rate increase request. According to the DPS, they identified missing audited financial statements for 2007 and 2008; noncompliance with generally accepted accounting principles; a lack of information regarding the improper rates and inaccurate refunds under investigation; a need for capital upgrades and system maintenance; and necessary improvements to customer-service policies and procedures.

The PSB investigation found four problems associated with Readsboro Electric’s billing practices. In 2008, Readsboro Electric committed an error when calculating bill credits, which resulted in a partial refund for ratepayers.

In the same year, a calculation error led to a billing undercharge. Readsboro Electric did not correct the error until January 2009 and the PSB ruling noted that “the cumulative impact resulted in an under-collection of $1,741.70.”

Another billing error took place when the sewer department was overcharged. The PSB ruling stated that the sewer department “was supposed to be billed $3,437.75 but was actually charged $38,424.73, resulting in a difference of $34,986.98.”

The PSB found an additional $844.86 overcharge, raising the sewer department’s bill to a grand total of $35,831.84. Readsboro Electric is crediting the sewer department $746.50 per month until the overcharge is repaid.

Residential customers were also overcharged on the first 100 kilowatts of electricity. The PSB ruling noted that “(the) error existed since January 2007” but that Readsboro Electric “could not determine when this error began because it does not have billing records prior to January 2007.” Readsboro Electric fixed the error and residential customers are now paying the correct rate.

Readsboro Electric was cited for a $2,000 fine but the PSB still believed that the 30.76% rate increase met the public interest. The PSB concluded that the rate increase “should result in sufficient funds to substantially complete the system improvements.” The 30.76% rate increase went into effect August 1.

The increase will bring in an additional $92,262 in annual retail electric revenues which will cover the costs of hiring a part-time assistant manager and completing system upgrades; bring the department’s accounting practices up-to-date with generally accepted accounting procedures; and maintain proper cost allocations between shared town facilities.

In other news, the grand list was rejected by town clerk Annette Caruso. She said the grand list was submitted with only one signature, which could not be authorized, and that most of the pages were not legible. Lister Larry Hopkins acknowledged that 175 pages “were of very poor printing quality” and said the listers were dealing with printing issues prior to turning in the grand list. He said Earlene Lefebvre was also the only lister available to sign off on the document because the other listers were on vacation. “The poor printed quality of the grand list was the only issue. That was remedied,” said Hopkins.