City to issue more than $532,000 in credits after electric billing error

The City of Whitesboro will issue more than $532,000 in credits to electric customers after discovering a billing error that resulted in customers being overcharged through the city’s Power Cost Adjustment (PCA).

According to a statement released by the city on Tuesday, the error affected both residential and non-residential electric accounts, although the overcharges were calculated differently for the two groups. 

The city corrected the billing calculation Sept. 18 and plans to credit eligible customers for applicable charges during the previous 24 months.

According to an analysis prepared for the city, credits to active accounts are expected to total $532,169. 

The review covered 44,344 bills representing nearly 61 million kilowatt-hours of electricity and more than $10.4 million in electric charges.

The error involved the PCA portion of customers’ electric bills and was not related to meter readings, according to the statement. 

For residential customers, an additional 30 kilowatt-hours were included in the monthly PCA calculation. The amount of the overcharge varied because the city’s PCA rate changed during the period based on the cost of purchased electricity.

A residential customer who maintained continuous service throughout the full review period is expected to receive a credit of approximately $15.30. 

Individual residential credits may differ depending on how long an account was active and other circumstances.

The error had a larger financial impact on non-residential accounts. 

According to the city’s analysis, the billing system calculated the electric charge using the base charge, electric usage and PCA, then billed the PCA again as a separate line item. 

That resulted in commercial, industrial, institutional and municipal customers being charged the PCA twice.

The city’s analysis identified 2,321 active accounts eligible for credits. Of the $532,169 in anticipated credits, $128,217 is attributed to fiscal year 2025 billings and $403,952 to fiscal year 2026 through August.

The city said 42,812 of the 44,344 bills reviewed,  about 96.5%, were successfully reconciled to the amount originally billed. Those bills account for $430,275 in credits.

Another 1,532 bills, or 3.5%, could not be reproduced exactly and were flagged for review. Credits associated with those bills are estimated at $101,894.
Interest is not included in the credit calculations.

The city’s review also identified 723 closed accounts involving 5,231 bills and $14,766 in overcharges. Those amounts were excluded from the automatic credit calculation because the initial scope, based on guidance from the city attorney, covered active accounts.

However, the statement said former customers who had an electric service account during the 24-month review period may request consideration for a credit. 

Former customers should provide the name associated with the account, service address and current contact information so city staff can review the account history.

Current customers with eligible active accounts do not need to take any action. Credits will be applied directly to their utility accounts.

According to the statement, the city has consulted with its attorneys and obtained an independent review of the corrected billing methodology after identifying the discrepancy.

As an additional safeguard, the city’s independent auditor will review other utility billing calculations to verify their accuracy. 

City Administrator Phil Harris also plans to present an ordinance to the City Council that would require periodic independent validation of water, sewer, garbage and electric utility billing. 

Results of those reviews would be made available to the public under the proposed ordinance.

“The City acknowledges the error and takes responsibility for correcting the issue,” the city said in its statement.

Customers with questions about individual accounts may contact Whitesboro Utility Billing at 903-564-3311 or [email protected].