Chelan adopts utility billing dispute process with protections against shutoff

CHELAN — Utility customers will have a formal process to challenge incorrect bills and protection against service cutoffs over disputed charges while their cases are reviewed under an ordinance approved by the Chelan City Council on Oct. 13.

The ordinance gives the finance director authority to investigate and correct billing errors and allows customers to appeal decisions to the city administrator.

Finance Director Heidi Evans said the city previously lacked clear authority to provide billing relief when equipment or processing problems produced inaccurate charges.

Staff checks unusually high or low consumption readings with the Public Works Department before bills are issued, Evans said. But technical problems can still require further investigation, including recent instances of meters reporting negative consumption.

The city has been working with equipment manufacturers to troubleshoot problems and replacing meters when necessary, she said. The ordinance provides a way to address the billing side while staff resolves those technical issues.

Under the new process, customers generally must submit a written request to the finance director within 30 days after a disputed bill or notice is issued. The request must identify the charge or decision being challenged and explain the basis for the dispute.

Customers facing a scheduled shutoff may request review at least seven days before termination, or later if reasonably practicable.

While a timely review or administrative appeal is pending, the city cannot terminate service, assess delinquency fees or enforce its utility lien for the disputed amount, provided the customer continues paying undisputed amounts when due.

Customers may request an informal hearing in person or by telephone within 10 business days after the city receives the request, or agree to exchange written materials instead. The finance director generally must issue a written decision within 10 business days after the hearing or completion of that exchange.

The ordinance allows corrections when charges were not owed, account information was processed incorrectly or equipment and system errors caused inaccurate consumption records or billing. Corrections can address both overbilling and underbilling, including previously issued bills.

When actual consumption cannot reliably be established because of a technical error, the finance director may estimate use from available evidence, including historical and seasonal consumption, irrigation patterns and information from the equipment manufacturer.

An unusually high or low bill alone does not establish an error. The ordinance also specifies that consumption accumulated while meters were not read, including the first bill after winter, is not by itself a billing error.

Customers who disagree with the finance director’s decision may appeal by filing a written notice with the city clerk within 14 calendar days after the decision is delivered. The city administrator’s ruling is the final administrative decision.

Any disputed amount upheld through the process becomes due within 30 days after the final determination is delivered. Delinquency fees apply only if that amount remains unpaid after the deadline.

The ordinance does not authorize forgiveness of valid charges. It also applies to disputes pending when it takes effect, including those involving earlier bills, provided no final court determination has been entered concerning the charges.

The review procedure must be made available at City Hall and on the city’s website, and shutoff notices must explain how to request review.

Andrew Simpson: 509-433-7626 or andrew@ward.media