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