BILLING CORRECTIONS

DPP NUMBER DPP 500 P III-432

EFFECTIVE DATE 05/13/2022 SUPERSEDES N/A

APPROVED BY / s / by Mike Haynes, Assistant General Manager

1.0 PURPOSE

This Department Policy and Procedure (DPP) sets uniform and equitable guidelines for billing corrections for utility service, in accordance with state and local laws and departmental goals and objectives. This policy applies to the City Light Department (Department) retail customer utility service billings.

This Department Policy is not intended to override contractual billing requirements, such as wholesale power sales or court approved settlements. In cases where this policy conflicts with a negotiated contract or an approved settlement, those requirements will prevail.

2.0 POLICY

Upon discovery of a situation where a customer's energy usage was not billed or was inaccurately billed, the Department will issue a corrected bill.

Bill corrections will use the rates and rate schedule in effect during the billing period(s) covered by the corrected bill.

The Department will issue the corrected bill as soon as possible from the date that an underbill or overbill error is discovered. For billing errors which result in a net increase in the amount billed to the customer, the utility will not retroactively correct bills extending beyond three years from the date of discovery. However, in the event of fraud or diversion, the Department may correct for the maximum period allowed by law.

3.0 EXAMPLES

This section describes how this policy would be applied under various circumstances of billing error. These examples are illustrative and not intended to be exhaustive.

Cause Remedy

No meter installed.

For service points where service was erroneously provided with no meter installed, the customer may choose one of the following billing options:

a) Customer will receive a current billing and then, after 6-12 months will receive a corrected back bill based on current consumption. or

b) The customer will receive a bill correction based on a customer-selected usage amount using the rates and schedule for the applicable billing period(s), with a true-up after 12 months based on actual consumption. or

c) At SCL's discretion, the customer may be billed based on an average consumption table if a valid table is approved for use.

Meter is installed without a service agreement .

For service points where a meter was installed but no service agreement was established, the customer will receive a bill correction based upon metered consumption history using rates and the rate schedule in effect during the billing period(s) covered by the corrected bill.

Meter installed with wrong configuration.

For service points where a meter was installed incorrectly (e.g. incorrect multiplier or configuration of Solar production meter), the customer will receive a bill correction based upon metered consumption history adjusted for error using rates and the rate schedule in effect during the billing period(s).

Meter is incorrectly recording usage by more than 2%. For service points where the Department has performed a meter test and the meter is recording usage more than 2% faster or slower than actual usage, the customer will receive a bill correction based upon metered consumption history adjusted for the meter error using rates and rate schedule in effect during the billing period(s).

Meter assigned to the wrong service agreement. For service points where a meter is assigned to the wrong customer, the customer will receive a bill correction based upon the corrected consumption using rates and rate schedule in effect during the billing period(s).

A service agreement was established with an incorrect rate. For service points where a service agreement was established with an incorrect rate, the Department will bill the customer based upon metered consumption history using rates and the rate schedule in effect during the billing period(s) covered by the corrected bill.

Diversion and/or fraud has occurred.

For service points where the Department has discovered tampering, diversion or fraud, the Department will bill the customer based on the Department's estimate of unauthorized use during the infraction period. Nothing in this rule shall be interpreted as limiting the Department's right under applicable law including RCW 9A.61 Defrauding a Public Utility or RCW 80.28.240 Recovery of damages by utility company for tampering, unauthorized connections, diversion of services.

See also DPP III-416 Current Diversion.

No bill is generated because inaccessibility causes more than three estimated meter reads

For service points where the Department is unable to attain a meter read due to an inaccessible yard, locked gate or other barrier, including dogs or uncooperative behavior, the Department will continue to bill the customer based upon estimated reads with a true-up based on actual consumption history using the rates and the rate schedule in effect during the billing period(s) covered by the corrected bill once the meter is made accessible. This does not preclude potential disconnection of service due to lack of access or lack of cooperation. (SMC 21.49.090.N & O)

4.0 EXECUTIVE REVIEW In limited and rare circumstances, when it is in the best interests of the utility, the General Manager/Chief Executive Officer may make exceptions to the time limits, dollar thresholds and other billing requirements. In such instances, the General Manager/Chief Executive Officer will document in writing the circumstances and reasoning for the exception.

5.0 DOCUMENTATION

The Department will maintain documentation of bill adjustment activity in accordance with State record retention guidelines.

6.0 REFERENCES

RCW 80.28.080

SMC 21.49.090 21.49.110

Distribution: Posted online @ http://www.seattle.gov/light/policies

REVISION HISTORY:

DATE CHANGES MADE REVISED BY

04/22/2022 This Department Policy and Procedure sets uniform and equitable guidelines for billing corrections for utility service, in accordance with state and local laws and departmental goals and objectives. Author: Chris Ruffini, Jeff Wolf, Trina Morris

Coordinator: Kim Kinney