From Deseret News archives:

Energy drain: Overbilling by utilities siphons education funds

Published: Monday, Aug. 16, 2004 11:55 a.m. MDT
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Weber officials also found Lakeview Elementary's meter — located in a locked boiler room — was read nine times in 30 months, or 30 percent of the time, Questar confirmed. But since the district started looking into the matter in January, the meter has been read every month, Shepherd said.

"That certainly wouldn't occur with a residential customer," Shepherd said. "It's rare to even have one month calculated."

District energy managers wish estimates would stop — especially on power.

Schools pay a special "demand" charge, based on the 15-minute period during the month when power use peaks (typically, around lunchtime). The charge is expensive and volatile.

For instance, in June, Albion Middle School in Jordan District was charged $4,300 for demand — nearly half the $9,100 bill. Any other month, that charge would look right. But not when school's out for the summer.

Devey found meter readers for six months had not broken a color-coded seal, as they must to reset the demand meter. Energy management software, which several districts use, also showed the bill far exceeded previous Junes'.

Devey in late July secured a $1,249 credit.

Such stories lead Orchard to believe that improvements are needed.

They also pique one legislator's interest.

Story continues below
Rep. Stephen Urquhart, R-St. George and chairman of the House Public Utilities and Technology Committee, says the situation might be worth examining, but notes there are two sides.

"Where utilities are given broad exclusive powers, there's a public trust involved in that. They need to be careful with that and honor the trust the public puts in them," Urquhart said. "The public (schools) too need to take care of the public resources they've been entrusted with.

"It sounds like both sides need a little course correction."

Utilities are working to improve billing accuracy.

Technology helps.

Questar, Utah Power and Granger Hunter Improvement District, for example, are using data receivers to read meters. The receivers prevent misplaced decimals, transposed numbers and other human error.

Salt Lake City Corp. clerks review bills before they go out, catching perhaps half the potential errors, Lewis said.

Questar and Utah Power account managers work out kinks with big clients; Questar says it will work to resolve billing issues beyond the two-year recovery limit.

Utah Power offers districts financial incentives on energy-saving technology and experts to help them build more efficient schools.

"I honestly don't think the utilities have a mask and a gun," McLeod said. "I don't think they're doing this on purpose. I think they're trying to do the best job they can."

Districts say things are getting better.

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Ryan Long, Deseret Morning News

Michael Cote, head custodian of the Jordan School District Auxiliary complex, demonstrates how he checks the electric meter to make sure the district is not being overcharged.

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