WORST GUESSTIMATE - BGE under fire for overestimating bills

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By Stephen Janis

When Johns Hopkins grad student Blake Aftab opened up his BGE bill for January, he – along with many other customers throughout Maryland – was shocked.

“I live in a 600-square-foot apartment, so I was pretty surprised when my bill for January was $251 – triple my normal bill.”

But the sticker shock turned into a mystery that Aftab, who is working on his Ph.D in oncology, had to unravel.

“I looked at my past bills and it just didn’t add up. I had never used close to that amount of electricity,” he said.

A series of phone calls to BGE seeking a reason for his unusually high bill yielded little more than frustration.

“It was always the same explanation: It was cold, I used more electricity, and the billing period was longer,” he lamented.

But then, during Aftab's roughly fifth call to the utility company, a BGE supervisor let a key piece of information slip.

“They told me part of my usage for the month was estimated, which wasn’t what my bill said. I knew right then something was wrong.”
BGE sent this letter to Blake Aftab saying his bill was accurate just before a BGE investigator admitted it was in fact, inaccurate.
At Aftab's request, the supervisor sent him the two meter readings taken during January, along with the estimate for the remaining six days. That’s when Aftab discovered what he thinks may be behind some of the unusually high bills that prompted the recent calls for re-regulation of BGE.

“My average use for the month was 36 kilowatt hours per day, but for the six days they estimated at the beginning of the billing period I was supposedly using 106 kilowatts hours per day.” In other words, Aftab said, BGE estimated he used more electricity in the first six days of the 34-day billing period than he used for the remaining three weeks, even though the average temperature for the days BGE estimated his use was actually 15 degrees higher than in the ensuing weeks.

“So I used three times more energy when the temperature was on average 15 degrees higher. That doesn’t make any sense,” said Aftab, who noted the errant estimate could not be corrected by a future meter reading. “They back-ended it; basically it was a retro-estimate.”

But even though Aftab was armed with proof that he had been overcharged, BGE was stubborn.

“They sent me this form letter. It basically gives the same reason they’ve been saying publicly: that my bill was because of cold weather and a longer billing period.”

But Aftab was undaunted, finally reaching a BGE investigator who didn’t put up much of a fight when confronted with the evidence.

“I explained to her how out of whack the estimate was, and she immediately took 40 percent off the bill,” he said. “She didn’t admit they did anything wrong, but I think there are some serious problems with estimated billings.”

BGE representatives said they could not respond to questions about specific cases, citing customer confidentially. But they did defend estimated readings as accurate.

“When meters are not read…a bill is generated based on an estimated reading. Usually estimated readings are conducted due to operating conditions or safety concerns (storms, icy roads, etc.) Estimated readings are based on previous usage at that location and the weather,” BGE spokeswoman Linda Foy wrote in an e-mail Tuesday to Investigative Voice.

But officials of the Public Service Commission, the regulatory body that approves BGE rate hikes, said they are investigating multiple consumer complaints about inaccurate estimated readings.

“Our Office of External Relations received 23 calls, in which the main point for calling was BGE bill estimates in January and February,” PSC spokeswoman Karen Gatzke wrote in an e-mail.. However, Gatzke said she did not immediately know how the number of complaints compared with last year.

EMT dispatcher Christina Kane, 39, said she was distraught when her January electricity bill for January mushroomed to $1,000 a month for her three-bedroom Cecil County home, and thinks an inaccurate estimate may be the cause.

“I just read it and cried,” said mother of three daughters and wife of an EMT. “Our house is heated by oil, so our average electricity bill has been $300- $500 per month. But according to the bill, we doubled the amount of electricity we used in the month, which doesn’t make sense," Kane said January snowstorms may have prevented meter readers from visiting her home. But instead, of fighting escalating utility bills, she has taken a second job at a private ambulance company.

“I start work today, " she said. "What else can I do? We’re honest hard-working people, but now we're working just to pay our BGE bill.”

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Comments (9)
overcharging
9 Sunday, 19 July 2009 20:01
james
Yes BGE has confirmed they do this, and woe to the customers who aren't paying attention. I also had a problem when my meter was broken and they "estimated" my electrical bill for a couple months as 3-4x as high as normal. When confronted, the customer service department basically told me sorry, live with it.

Of course I didn't, and I suggest you do exactly what i did, which had BGE begging me very soon to pay me back money.

Contact your local Consumer protection agencies. As a regulated company your utility companyes are watched over by the consumer protection board. Send the board a email filing a complaint with all the info, letting them know BGE is overestimating your bill and trying to make you pay. Believe me, once the consumer protection board contacts them, BGE WILL start groveling to cover up the mistake.

Also contact who ever else you feel might help, like the Better business bureau of maryland. This fixed my problem with minimal work. The consumer protection board is in existance to confront BGE with problems like this when BGE tells you to jump off a bridge. And pretty much most of the time, BGE will relent from their distain for their customers.
OUTRAGEOUS PRICES
8 Tuesday, 14 April 2009 13:25
BRANDY
I LIVE IN A FAIRLY LARGE SINGLE FAMILY HOME.. MY BILL IN MARCH WAS $ 650.00 ( INSANE ) THIS MONTH I HAVE A BILL FOR $ 350.00 ( MUCH BETTER... BUT I HAD TO FREEZE.. ) IM GOING TO CHECK INTO THIS ESTIMATED COST THOUGH.. FOR SURE.
I second that!
7 Friday, 10 April 2009 21:59
Sweetback
I have learned so much here. I have been in a courtroom, realized what the connection were with the witness murdered and Harris's murder. Man, this a great on-ine newspaper.
Yup
6 Sunday, 05 April 2009 15:20
Tim George
Our most recent bill for March was about $220, and it was well over $300 the mont before. In March though, we literally turned the heat on one or two nights, and kept it below 70 when we did. We have a 2 bedrrom apartment in Columbia.
frustrated!!!!
5 Monday, 23 March 2009 22:08
Eva O'Croinin
We have replaced the doors and windows with expensive upgrades specifically for energy reasons. We replaced our HVAC through BGE with the promise of saving at least 41% on our heating and cooling costs. We replaced every appliance including our hot water tank with energy star rated appliances. We have insulated and replaced the thermostat with one that BGE is suggesting everyone use. We replaced our light bulbs with LED and CFL bulbs. WE keep the heat around 66 and 67 degrees. We were preparing ourselves for this winter after we saw what our bills were like last winter. It did not help. Our Jan. bill estimated 2447 kWh with an all time high of 85.6 average daily use. I plug appliances into power strips and turn them off when not in use. How can that be so high? I called BGE Jan. 2008 because I suspected an error in their billing method. I think this investigation needs to go back to 2008 winter as well.
Something is not right.
Me too!
4 Monday, 23 March 2009 20:22
Linda Turner
I had a similar issue. My February bill was sky high at $460.00. To some this may seem not so high, but I had just dumped $10,000 into a whole new gas furnace and hot water heater. I used to have a 28 year old heat pump and electric hot water heater. I spent the $10,000 thinking it would really cut my monthly bill. I thought the culpret were the old systems. My new high efficiency units should have really reduced my bill. Of that $460.00, $75.00 of it was for my gas which now heats my house and my water. That means I spent nearly $400 on lights, TV and refridgerator usage. My house is only 1,700 sq feet.! How can that be??? Anyway, so March comes and my bill is only $260.00! OK... good news, right? But where is the $200 difference? So I realized that my Feb. bill said "estimated"... so I called BGE. They explaind to me that if it's estimated, the next month when they get the actualy they compare it to what was estimated and make the adjustments. In my case they adjusted my March bill down. But there is NOTHING on your bill that explains all of this... so I have to take her word for it or else I'll never know what I used in February. Anyway, she told me that if you see your bill says "estimated" you can go out and call in your meter reading to adjust the rate. I think I'm going to be reading my meter the 5th of every month now to be sure they aren't robbing me. I have a sneaky suspicion that they are! And I wonder for how long have they been doing this? If so many people have had a problem this winter, why isn't there a commission looking into this??? Any answers???
BGE
3 Thursday, 19 March 2009 07:40
Maria Allwine
Is anyone really surprised that BGE is doing this? It's fraud pure and simple and that's what deregulation has brought us. BGE and its parent, Constellation, are getting away with fraud in this state and our alleged representatives do nothing about it. It costs about 3 cents per killowat hour to produce 70% of the electricity we use in this state - and we are currently paying almost 12 cents. Where is this profit going? Constellation has built ZERO new plants in the 10 years of deregulation yet their executives are getting $32 million in bonuses. Oops, too bad about those laid-off employees. BGE is robbing us blind and the fact that people are angry and our lawmakers do nothing has emboldened Constellation (which is the holding company for BGE) to the point where this kind of fraud is normal business practice.

What is it going to take for people to take their anger and get active? Join the MD Coalition for BGE Reregulation - we've been working on this with the very few lawmakers in the legislature, such as Jill Carter, Melvin Stukes, Jim Rosapepe and EJ Pipkin, who are on the right side of this issue. But we can't do it alone - we need angry ratepayers to get in lawmakers' faces and let them know we're not going to go anywhere until we get reregulation and rate relief - NOW!
BGE is a rip off
2 Wednesday, 18 March 2009 13:03
Debbie Rumsley
If we had more consumers like the young man in this article we could give BGE a lot of flack but like most consumers I too called BGE when my electric went up & was given the same bullcrap story, however after reading this item I am going to re-examine my past bills & contact BGE again. Your article just might save us working stiffs a few dollars & cause BGE to re-think the bullshit they hand out over the telephone.
I was told too the "cold winter, ect ect.. but I donot have gas heat so my bill should not have more than DOUBLED as it did.
I wish the PSC would have more guts to stand up to BGE & the other utlities on behalf of the consumers.! Keep up the good work, I fully intend to forward this to all my family here in the Md area!
Thank You Investigative Voice
1 Wednesday, 18 March 2009 10:26
Dennis Robinson
Stated bluntly: this is an impressive piece of journalism. I have yet to see such thoughtful introspection into the price-spike from any other news organization. Thank you, and please continue to provide pieces which speak to this issue.

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