860-036-1440 Adjustment of Utility Bills (1) If a water utility determines that it incorrectly billed a current or former customer for tariffed services, the water utility may take corrective action depending upon the time the billing error occurred and the date the water utility discovered the error. (2) If the utility billed and collected more than the amounts stated on its tariff for services, the water utility must refund or credit amounts incorrectly collected during the 12-month period ending on the date on which the water utility issued the last incorrect bill. However, if the incorrect billing occurred more than three years before the incorrect billing is discovered, no refund or credit is required. For example, if the water utility discovers in July 2016 that it over collected amounts from January 2013 to January 2015, the utility must refund or credit amounts over collected for the period from January 2014 to January 2015. However, if that billing error occurred from January 2013 to January 2014, the water utility is only required to refund or credit amounts over collected from July 2013 to January 2014. (3) If the utility billed and collected less than the amounts stated on its tariff for services, the utility may issue a bill to collect amounts owing for the 12-month period ending on the date on the water utility issued the last incorrect bill. However, the utility may not bill for services provided more than two years before the date the utility discovered the billing error. For example, if a utility discovers in July 2015 that it under collected amounts from July 2012 to July 2014, it may bill the customer or former customer for amounts owed for the period from July 2013 to July 2014. However, if the water utility discovered that billing error in January 2016, it may only collect amounts incorrectly billed during the period from January 2014 to July 2014. (4) Notwithstanding section (3) of this rule, if the utility’s under collection for tariffed services was the result of fraud, tampering, diversion, theft, misinformation, false identification, or other unlawful conduct on the part of the customer or former customer of the water utility, the water utility may collect full payment for any amount owed without limitation. (5) When a water utility issues a bill to collect under collected amounts, a current or former customer of a water utility may enter into a time-payment agreement as provided in OAR 860-036-1420. If the customer is already on a time-payment plan, the utility must offer to renegotiate the payment plan to include the billing error. If the customer and utility cannot agree upon payment terms, the Commission will establish terms and conditions to govern the customers’ obligation. This section does not apply if the corrected billing is the result of the conditions listed in section (4) of this rule. (6) When a water utility requires payment for amounts previously under collected, the utility must provide a written notice that explains: (a) The circumstance and time period of the billing error; (b) The corrected bill amount and the amount of the necessary adjustment: (c) The Commission’s consumer complaint process; and (d) The right for a current or former customer to enter into a time-payment agreement with the utility. (7) A billing adjustment is not required if a water meter registers less than a two percent error under conditions of normal operation. (8) The water utility may waive rebilling or issuing a refund check when the costs make such action uneconomical. Statutory/Other Authority: ORS 183, 756 & 757 Statutes/Other Implemented: ORS 756.040 & 757.077 History: PUC 1-2017, f. & cert. ef. 1-24-17