Citizens Energy: 18K water meter lids not working; using amended rule to recoup costs
INDIANAPOLIS (WISH) — UPDATE: June 24, 2015 – The Indiana Utility Regulatory Commission and Citizens Energy have provided additional information. See update below.
The Indiana Utility Regulatory Commission said Wednesday that it has received three complaints and four inquiries from Citizens Energy customers concerned about water meter pit lids. A regulatory requirement leaves customers shouldering the cost of repairs or replacement.
On Tuesday, I-Team 8 reported on a dispute brewing between Indianapolis homeowners and Citizens Energy over who is responsible for the repair of the cast iron lids that cover water meters. The homeowners contend they don’t service the water meters and shouldn’t be responsible for its maintenance. But the IURC and Citizens point to utility regulations that say otherwise.
Citizens Energy estimates 18,000 pit lid covers are not in proper working order, according to a spokeswoman.
The utility wants homeowners to shoulder the cost of making the repairs themselves within 30 days. If they are unable, a Citizens Energy representative will make the repairs at a cost of up to $68.
Last week, the utility sent out letters to Homewood Park West residents asking that they pay to make repairs to the pit lids that “will not open or close properly,” according to a copy of the letter obtained by I-Team 8.
“Per the Indiana Utility Regulatory Commission, which is the governing body that regulates all utilities in Indiana, it is the customers’ responsibility to maintain the water meter pit lids,” said Sarah Holsapple, a spokeswoman for Citizens Energy.
Holsapple said approximately 100 letters have been sent in the latest billing cycle.
I-Team 8 first reported Tuesday that the rule that stipulates that homeowners are responsible for maintaining their pit lids was adopted by the Indiana Regulatory Commission on March 24, 2014.
Holsapple provided the following language on the rule known as 5.1:
5.1 Ownership and Size of Meter and Pit. All Meters shall be owned, installed, removed and maintained by the Utility. The Utility shall determine the kind and size of Meter to be used in connection with any Service Pipe. Except as provided in Rule 5.3, all Meter pits, Meter pit covers and other materials comprising the Meter pit facilities shall be purchased, owned, installed, removed, and maintained in a safe manner by the Customer. Repair to or replacement of missing or damaged Meter pit lids for public safety reasons shall be made by the Utility, but at the Customer’s expense. Each Customer shall pay a fee for installing a Meter as set forth in Appendix A of the Utility’s Rate Schedules.”
UPDATE:
After our story aired, IURC contacted us Wednesday morning with additional information.
While the rule was made effective in 2014, IURC and Citizens Energy contend similar language has been on the books as far back as 2002. Citizens Energy did not take over the water utility until 2011.
The 2002 language was provided to I-Team 8 by the IURC.
At the time it was known as rule 5(A).
It reads as follows: “All meters shall be owned, installed, removed and maintained by the Department. The Department shall determine the kind of size and meter to be used in connection with any service pipe. Except as provided in Rule 5(C), all meter pits, meter pit covers, and other materials comprising the meter pit facilities shall be purchased, owned, installed, removed, and maintained in a safe manner by the customer.”
But regulatory records reviewed by I-Team 8 show that there was confusion among customers over who is responsible for the pit lid covers when Citizens Energy sought to amend the language in 2014. At the time, Citizens Energy was seeking approval for a rate increase before the regulatory commission.
According to a copy of the records reviewed by I-Team 8, Citizens Energy sought “proposed changes to its Terms and Conditions for Water Service, including the ‘addition of a provision to the Meter Rule that (Citizens) will repair or replace missing or damaged meter pit lids at the customer’s expense.’”
During that petition Korlon Kirkpatrick, Citizens Energy’s Director of Regulatory Affairs, cited the 2002 language but noted “that there was some confusion among customers as to whether they were responsible for repairing or replacing the meter pit lid. The proposed added language clarifies this issue, providing that the ‘repair or replacement of missing or damaged meter pit lids shall be made by the Utility but at the customer’s expense.’”
But after concerns were raised by the Office of Utility Consumer Counselor, the language was changed to read: “repair to or replacement of missing or damaged meter pit lids for public safety reasons shall be made by the utility but at the customer’s expense.” The regulatory board found the changes to the rule were “reasonable,” noting that “these changes, among other things, add definitions and provisions that will provide additional clarity regarding specific issues relating to the Petitioner’s water service.” The language became effective in March 2014.Customers unaware
Despite this, it appears many residents were unaware of the change.
Several residents of Homewood Park West interviewed by I-Team 8 contend they’ve lived there for decades and never received a letter from the utility inquiring about their meter pit lid.
Amal Kafrawi was among those who received a letter last week.
“I’ve been living here since 1974 and I never had problem with the water company or the meter,” she said.
Bowles says many of the bolts and nuts on the water meter lids have rusted because the meter readers have failed to open and close them on a monthly basis.
“We feel that it is the responsibility of Citizens to correct this problem because their employees have caused the problem by not doing their job properly,” said Brent Bowles, the neighborhood association president.
By (the meter readers) not exercising that bolt on a regular monthly basis – that has caused the issue,” Bowles said in an interview with I-Team 8. “By them leaving them (unlocked) with the rain and snow, it’s cause the cast iron lid to rust, which seizes the brass bolt.”
When presented with Bowles’ complaint, Hoslapple said: “Our meter readers would say we can’t tighten the bolts if they are not working properly.”
Charles McDonald, who has lived in Homewood Park West for 51 years, says he’s never received a letter regarding his pit lid cover until now.
“I think they are trying to jam people, is what they’re doing,” McDonald said.
Holsapple denied that, saying: “It’s not a money grab. We would have to pay for it if we replaced it on our own so we would ultimately charge the ratepayers because your meter pit has a bolt that’s not working,” she said. “We are not making any money off of replacing nuts on water meter lids we are simply charging the customers what they need to pay because it is their responsibility.”
Citizens Energy was not responsible for Indianapolis’ water utilities prior to 2011, Holsapple said, but she did acknowledge that the effort to recoup the cost of repairs is something that Citizens Energy has enacted.
“This has been something that we’ve put into place. Yes, it’s been one of our practices. I would not call it an initiative, but I would say it’s something that we regularly monitor and we send out these letters on a regular basis,” she said. “We do it for a couple reasons – first the safety reason – and then I don’t know that a lot of customers know that it is their responsibility. Even though IURC says that’s the case, we understand that people may not know that.”
A link to Citizens Energy’s explanation can be found here.
Citizen’s Energy’s Holsapple said the issue of letters going out is not new. She said the company has sent them out more than 100 in recent weeks, but that it had been a “regular practice” of the company for years.
“We do it for a couple of reasons – the safety reason — and then I don’t know that a lot of customers do know that it is their responsibility to maintain
Even though IURC says that’s the case, we understand that people may not know that,” she said.
Bowles said he has spent the last week using a hammer and a $4 can of rust remover to help unlock pit lids that were rusted over.
I-Team 8 watched as Bowles hammered around the bolts and nut, loosening at least five during our interview.
“I think this is my tenth this week,” Bowles said.
Bowles said he worries not everyone of his neighbors will be physically able to make the repairs, which is why he’s done it.
Daniel Pitmon is among those who received a letter from Citizens Energy. He’s legally blind and said he had a hard time seeing the bolt which was rusted.
Both Pitmon and Bowles said that they’ve filed complaints with the Office of Utility Consumer Counselor.
“The liability on it should be the utility company not the homeowner,” Pitmon said.