SENATE BILL REPORT

SB 5037

BYSenator Moore

Limiting the authority of utilities to collect amounts not billed due to the utility's error.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):

Senate Staff:Glenn Blackmon (786-7455)

AS OF JANUARY 13, 1987

BACKGROUND:

Utilities sometimes make errors in metering or billing the consumption of a customer.  If the error goes undetected for a long time, the customer may be held liable for a large bill, even though the undercharge was the result of an error by the utility.

SUMMARY:

If a municipal utility, public utility district, or private utility undercharges a customer by its error, it can collect only undercharges made during the previous six months.  A utility cannot charge interest on undercharges caused by its error.  Gas and electric utilities are subject to the provisions.

Fiscal Note:      requested