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Matters

ESCOs: New York Utility's "Systemic" Billing Problems Have Led to "Chaos", Require PSC Action

December 10, 2014

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Copyright 2010-14 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Small Customer Marketer Coalition has asked the New York PSC to resolve the "continuing inability" of KeySpan New York and KeySpan Long Island (collectively referred to as National Grid) to provide, "adequate, consistent and accurate billing services in connection with National Grid's ESCO customer billing program."

"During the past year, the billing services provided by National Grid have been plagued with numerous and continuous errors, omissions and defalcations. The pattern of error has been systematic, continuous, and comprehensive. This has redounded to the severe detriment of the participating ESCOs directly by negatively impacting their financial operations and customer relations. This has also created material negative impacts for ESCO customers," SCMC said.

SCMC alleged that the billing errors identified by ESCOs over the past 12 months include the following "unacceptable" situations.

• All system generated invoices in NY and LI for the month of October 2014 were flawed and corrected system invoices had to be issued.

• National Grid has directed ESCOs to round up usage on the 810 invoice even though the meter reading is for a specific non-rounded amount.

• National Grid provides required 867/810 files outside the accepted time frame.

• National Grid provides corrected 867 read files with read dates and usage that do not match previous reads and usage.

• There are many missing payments.

• National Grid rejects timely and correctly filed 810 files resulting in consolidated bills issued without the ESCO charges.

• After the billing system change in LI in December 2013, National Grid issued numerous erroneous files and bills, applied double charges to certain customers, failed to include ESCO charges on several bills and then issued multiple charges on one bill.

• There transmission problems between National Grid (LI) and their vendor which has led to multiple problems

• Billing files sent by the ESCO were rejected or not processed in a timely manner leading to "A13 rejections"

• After paying the ESCO numerous times for the same bill and each POR account, National Grid did not take back the money and reissue the correct payment; instead it sent ESCOs "zero" payments for the next few months. This created chaos for ESCOs.

• ESCOs have received numerous customer calls and complaints that payments they made are not reflected on the ESCO bill. This problem has arisen because National Grid has not paid ESCOs for these customers' accounts. The responses to our numerous inquiries and follow-ups are that they are looking into it. This has been going on since April 2014, with no resolution.

• There is issuance of multiple bills for the same period without issuing a bill credit to the customer to offset the erroneous double billing.

• There have been failures to remit the appropriate POR payment for accounts that were timely billed through EDI.

• There have been failures to meter and bill large accounts.

"The magnitude and systemic nature of the problem cannot be addressed by the filing of individual billing complaints either directly with the utility or the Commission," SCMC said. "What is required is for the Commission to direct National Grid to immediately rectify the errors in its billing system, provide a comprehensive listing of the actions National Grid will expeditiously implement and resources it will deploy to ensure that the billing system is operating at an acceptable and reasonable standard, and the steps it will take to ensure that the integrity of the billing system will be maintained in the future. Such a comprehensive process is required in order to provide ESCOs and their customers with accurate, just and reasonable billing services."

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