20160127Complaint.pdf

YES Mortgage
Locol Mortgoge Experts
A'lU-E - lo'o)-
ldaho Public Utilities CommissionooT.%P,gT'so,
December 29,2ots
ldaho Public Utilities Commission
472W. Washington
Boise, lda ho 837 2O-OO7 4
Attn: Ms. Jean Jewell, Commission Secretary
JAN 0 I 20t6
Boise,ldaho
RE: Avisto Utilities / Vio USPS Priority Mail
Dear Ms. Jewell,
I would like to file a formal complaint against Avista Utilities for incorrect billing with respect to our utility
bills from the period of April 2008 to August 2015.
Although I realize that the time period for remediation of billing errors is typically 35 months, as detailed in
IDAPA 37.27.07, Section 204 whereby the maximum amount of time a Utility Company may seek restitution
from a customer is establishedfor "Errors in Preparation lof billing statements] - Mallunctions [in
equipmentl - Failure to Bill, in this particular situation, there are exigent circumstances that I would like to
take this opportunity to address:
This is not a situation of a simple billing error, a malfunction in the meter/other equipment,
or a failure to bill but rather it is a situation where we have been billed for another
company's usage for over seven (7) years.
ln this situation, after several months of high bills, I contacted Avista in August of 2008 to
address my concerns regarding what I considered to be extremely high bills. Avista
responded by sending a technician out to investigate the situation and lwas assured that
everything was in order,
ln September 2015, the neighboring office, North ldaho Home Health, vacated their office
when they moved to another location and our utility bills dramatically decreased. lt was
obvious that there was an issue and we contacted Avista. Avista came out and once again,
advised that there were no issues; the meter and equipment were performing correctly.
ln October 2015, we AGAIN contacted Avista and asked that they look at this situation
further as there was obviously an issue. They scheduled a time to come out and inspect
both office suites on October 27,2075. lt was discovered that the two (2) meters were
incorrectly registered at Avista whereby our usage was being billed to North ldaho Home
Health and their usage was being billed to us. As you will note below, there is a significant
difference in not only the office square feet, but in the number of employees; therefore, this
error negatively affected us for over seven (7) years.
1.
2.
3.
4.
5. lf Avlsta had properly researched the irsue back in 2008 when it was first brought to their
attention, this situation could have been resolved back then; therefore, we should not be
penalized due to their failure to properly address the situation.
To fufther dorifu above item.#l snd #2:
Our building is set up as a commercial duplex in the River*tone Complex and as such has two {2} separate
office suites with {2}two separate meters for utilities. The overall building has 4,951sguare feet and our
particutar suite is substantially smaller than the adjacent suite with only 1,458 sq. ft. (or 29.5% of the overall
building space) and the adjacent suite hal 3,483 sq. ft. (See Exhibit A). To put the space differentlal ln
prospective, the adjacent suite, North ldaho Home Health, had a staff of 20'25 people and they were open 7-
days a week. Our understanding is that they also held monthly company meetings with sometimes up to 30+
people in attendance.
Our businest, Your Equity Source, LLC, has a much smalter staff which consisted of four (4) people from 2008
until2014andonlyfive(5)peoplein2015. Notonlyarewenotopenonweekends,butwewereonlyopen%
days on Fridays.
As mentioned above, the utility bills seemed extremely high for such a small space with limited equipment
and employees which is why we asked Avista to research the situation back in 2008. When Avista advised us
that everything was correct, we then contarted the owner of the building, MICA CREEK ttc and expressed
our concerns. As a result, they had extra insulation put in to see if this would help with the high utility bills.
The utility bills never changed and now wB can see why since the benefit was likely realized by the
neighboring office.
To further clarifv ahove ltem #3 ond lH:
ln September, 2015 North ldaho Home Health vacated their office suite when they relocated to another
location and when we received our October 2015 statement, our average billing went from $200+/- per
month to $so+/- per month. we again contacted Avista Utilities to exprels our concerns.
On Thursday, October 22, 2015, they sent their utility personnel out to check the meter. At that time, they
again verified that the meters were in working order and once again advired that everything was in order.
Easically, it was the same response we received from them in 2008.
I strongly disagreed with their analysis and we once again contacted Avista and expressed our concerns - they
scheduled a second inspection for Tuesday, October 27,2OLS whereby the Avista utility personne! conducted
a test of the meters in both suites (our suite and the now vacant suite which was formerly occupied by North
ldaho Home Health). They instructed us to shut all our elertric equipment off prior to their coming out in the
morning and upon their arrival and we had our staff member-Amy Adkinron on sight to assist and confirm
that the test was actually conducted. They instructed her to ltay uprtairs in our offlce while they activated
the electrical panel.
It was determined by this physical testing of the meters that in fact, the meter to our business and the
business next door to us (North ldaho Home Health) were crossed; thereby, creating a major billing error.
We were assured that they would correct the issue and that we would be adjusted for any overpayments.
Attachment A
Decision Memorandum
Page 2 of7
ln Sunlmorv:
The end result is that we were being billed for North ldaho Home Health't usage for the entire time we
occupied our office starting April,2W8, The utility personnelsaid they would report this to their billing
department and request that we be reimbursed for the overages we had been charged.
We received a letter dated November lji,2015 from Avista Utilities stating that a recent investigation of the
electric metering equipment revealed that the meter was rnixed with another address. Our account was
credited in the amount of $1,866.20 for 18510 kwhs billed between LOlzl2O]-z and 8/3120t5. (See attached
Exhibit B). There war nothing included to show how they arrived at thelr calculations and they only went
back 36 months.
Although |DAPA37.27,07,ieaion 2(M snd Section 61-642 indicate the timeframe for restitution is 36
months, this appeare to be more in line with the maximum amount of time a Utility Company may seek
restftution from a customer for "Errars in Preparotion lof billing statementsl - Mallunctlons fin equipmentl
- Foilure to Bill. Not only b thir not the cate in this situation, but the fact of the matter is that we did bring
this to Avista's attention back in 2008 and they did not take the time or the initiative to properly research
this situation. They had complete control of the situation with fullaccess to evaluate the meter wiring and
the ability to compare the two office ruite billing data upon our initial request in 2008. lnstead, their only
initiative was to check for the functionality of the meter itself.
Slnce Aprilof 2@8, we have paid a total of 519,219 to Avista which actually represents the adjacent space's
billing and as detailed below, their space is 70* of the overall square footage.
It would appear that such problems are not uncommon and State Utility Commissions and Governing officiats
do have the ability to allow for remediation beyond the typical period established within state statutes.
For exomple, in Gracc Edttotds vs. Conaectlcut Llght ond Powe4 the consumer wos owarded rcstitution tor E yeors
of ovcrchorges when lc was dctermlncd that odditionol ltams were lnconedfi connected to her Meter.
As onother example, there have heen so mony such lnstonces ln ahe Stale of New Yor* wheteby contument $,eure
harmed by Utillty Compony cfiors that the laws were chonged to give consumer thc obility lo seek rcrtitution lor
the octuol omount ol tila,e thsl were tlaonclolly honncd. ln thelr stotement:
Eilling arrors coused by laulty wlrc connections, lncorrect computotiont, lnstollotloa mishops or othcr mi$okes often
coatinue tor ycan without detectian, the blll soys. Even whcn o utllity compony odnowlcdges the error and can
account tor the amount of thc mlxokc, the llobtlity ls tor [o llmlted period, according ?o cu'rcnc stote stotlrt s.
'lhis couses on lnequitable situotion wherehy o ctstom.l oan prove the werchargc tor o longer period of tine, but
cannot be compcnsoted lot his aotat toss," thc meorurc says, "lhis legislotlon chonges the statutc of limitations lor
thesc utility compony bitling crrors .-, thcreby providlng o folrcr bask io seft e thesc motte*"
Anachment A
Decision Memorandum
Page 3 of7
Exur6i?
L1 /Qa-:- \) /'+ (J \)
locoieC in
squcre foot Closs A office spoce
becuiiful Merriit Creek Cffice Pork
with in Riverstone
Br.lilt-in reception oreo
Copy / Supply Room
Breok rocm
4 lorge privote offices
Lorge office oreo for cubicols
Lower level conference room
Secured {ile storoge
Cosey Brczil
208.7-;0.2595
cosey. brozil @khco.com
Josh Beebe, SIOR
208.699.7980
iosh. beebe{@khco.com
KIEMLE &
HAGOODCOMP.,\NY
208 774.2590
k i^ :,., .:cnr
IE
4i:-;i,lr;::;
F.eqtF!-sffi
i{**
-; ll--.j,:!:)r iilr
r;. fl Fu ia?-n?-:' Itrl.: '18?i": IE= I,"L
i ffi*'llltttrtc {SIf M Eli Ii i{ei IgHi rs
,.
I - -,
2426 Nl Merritf Creek Loop
E;Fltorft
Secure
Storoge
+ 392 5F@'A@@iraE@arere*Eft$:s&oA@mr 1,197 SF
Ccsey Brqzil
208.770.2s95
cosey. brozil @ khco. com
Josh Beebe, SIOR
208.699.7980
iosh. [e-mail]
KIzuI,E-&
HAG-O-Q"DCOlV{P.{NY
208.770 259A
khco.con':
IE
Our request is simple. We have, in eood faith. substantially overpaid for our utility services since 2008 when
Avista failed to properly research the problem after our initial complaint; therefore, we feelwe should not be
encumbered by the 36 month period. We are requesting that Avista Utilities make available the actual billing
information from April 2008 to December 2015 for our actual usage 49! we are requesting for the
commission to set aside the 36 month review period due to the unique circumstances and require Avista
Utilities to promptly refund to us the full amount overpaid. We not requestinB interest on the amount due;
however, we are requesting that they issue us a refund check lnstead of a credit on the account.
* "Also, Avista Utilities bills us not only for the electrical portion of our utilities, but also for the gas portion
of our utilities. We have asked for the gas meter to also be checked and thus far, this has not been
addressed. We are requesting that Avista check to ensur€ that the gas meters are not also incorrectly wired.
As a small business owner, I can assure you that keeping every expense in line is critical, especially for a small
business in the Mortgage tndustry (such as ours) whlch has endured decreased revenue overthe past 10
years due to the real estate market. I appreciate your time and consideration in this mafter and should you
have any questions or need any additional information, please do not hesitate to contast me.
Daniel Klein, ldaho Utilities Compliance lnvestigator (via email)
Ra0l Rafael Labrador, ldaho Congressman l't District (hand delivered)
CC:
YOIJR EQWTY SOURCE
YN Mortsage, NMIS #3079
2426 N. Menitt Creek Loop, Suite A
Coeur d'Nene, n $814
208-664-9260 PHONE
208-667-8s16 FN{
Attachment A
Decision Memorandum
Page 4 of7
Exntbtr B
November t3,20Ls
Your Equity Source
2426 N Merritt Creek Loop Ste A
Coeur d'Alene lD 83814
Re: AccountNumber5558810000
Dear Your Equity Source,
A recent investigation of the electric metering equipment at2426 N Merrh Creek Loop Ste A
revealed that the meter was mixed with another address.
We have credited your account S1865.20 for 18510 kwhs billed between t0/2/20L2and
813/201s.
lf you have any questions, please contact our office. Avista Customer Service Representatives
are available to assist you Monday through Friday 7:00 a.m. to 7:00 p.m. and Saturday 9:@ a.m.
to 5:00 p.m. at lSAOl227-9187. You can also visit us at www.avistautilities.com.
Sincerely,
Ti''*1 o nl''1 trtol"recl
3 qefr(s- l.De'JL
bten h41-L 3in {-r-
kPr; t L0A8
5o t+*r,r.r- SlvJ olbe
Fr Cred.'r 6 ( d"'!' o+l^tL
Lt l snrS .
ft{r, , *lnt'sr-ilrtl
lnW 51 /- lfio.
iJ[ich is o ci cl 5i',a'
*,",k- .hy.. a3- Pffa,e
tr^";:,'fr:,1'^ b
T lVre in o,.ur olti <1.
ArtachmenrA
Decision Memorandum
Page 7 of7
UTILITY CUSTOMER RELATIONS RULES IDAPA 3I.2T.OI
204. INACCURATELY BILLED SERYICE TINDER CORRECT TARIFF SCHEDULE _
FAILURE TO BILL FOR SERVICE (Rule 204).
01. Errors in Preparation - Malfunctions - Failure to Bill. Whenever the billing for utility
servlce was not accurately determined for reasons such as a meter malfunctioned or failed, bills
were estimated, metering equipment was incomectly installed or programmed, or bills were
inaccurately prepared, the utility shall prepare a corrected billing. If the utility has failed to bill a
customer for service, the utility shall prepare a bill for the period during which no bill was
provided. (4-2-08)
02. Rebilling Time Period.(4-2-08)
a. If the time rvhen the malfunction or error began or the time rvhen the utility began to fail to
bill for service cannot be reasonably determined to have occurred within a specific billing period,
the corrected billings shall not exceed the most recent six (6) months before the discovery of the
malfunction, error, or failure to bill.(4-2-08)
b. If the time when the malfunction, error, or failure to bill began can be reasonably determined
and the utility determines the customer u/as overcharged, the corrected billings shall go back to
that time, but not to exceed three (3) years from the time the error or malfunction occurred as
provided by Section 6l-642,ldaho Code.(4-2-08)
c. If the time when the malfunction or error can be reasonably determined and the utility
determines the customer was undercharged, the utility may rebill for a period of six (6) months
unless a reasonable person should have known of the inaccurate billing, in which case the
rebilling may be extended for a period not to exceed three (3) years. Utilities shall implement
procedures designed to monitor and identify customers who have not been billed or who have
been inaccurately billed.(4-2-08)
03. Refunds. The utility shall promptly prepare a corrected billing indicating the refund due to
the customer and issue a credit on the customer's next bill. Any remaining credit balance shall be
credited against future bills unless the customer, after notice from the utility, requests a refund.
The utility shall advise the customer of the option to have any remaining credit balance refunded
to the customer.(4-2-08)
04. Additional Paymcnts. The utility shall promptly prepare a conected billing for a customer
who has been undercharged indicating the amount owed to the utility. An unbilled or
undercharged customer shall be given the opportunity to make payment anangements under Rule
313 on the amount due. At the customer's option, the term of the payment iurangement may
extend for the length of time that the underbilling accrued or the customer rvas not billed.
(4-2-08)
[Adopted as Rule 8.2 and 8.3, O.N. 17744; amended and recodified, G.O. 177.]
Statutory Reference: Idaho Code $ 6l-642.
Cross-Reference: Rules 005, 203, 3 13.
Attachment B
Decision Memorandum