SPRING LAKE, Mich. — Money doesn’t grow on the trees outside of Dorothy Rose’s Spring Lake house.
“I mean, if I had Bucco bucks, I probably wouldn't care, but I don’t have Bucco bucks,” she said.
The 82-year-old woman contacted FOX 17 after she received a series of bills from Consumers Energy this month which said she owed hundreds of dollars more on bills she already paid in full over the winter.
“I was scared to death,” said Rose. “If [I] paid all of these, I'd be dead broke because we live on social security.”
After a phone call and a visit to the utility company’s office in Grand Rapids, Rose learned she was charged because she was billed an estimated amount during that time.
In a statement, a spokesperson for Consumers Energy told FOX 17 they began issuing estimated bills after Verizon disabled its 3G network at the end of 2022.
The move meant about 180,000 of the utility company’s electric meters, which were linked to the network, lost service and could no longer get an accurate read on usage.
Consumers Energy says its workers tried to upgrade all of the meters before they were disabled but were unable to because of supply chain issues.
A spokesperson for the company gave FOX 17 the following statement:
“Consumers Energy is working to replace 3G electric meters which were affected when the Verizon 3G network was disabled as part of their planned upgrade. While Consumers Energy and its meter contractor are replacing meters as quickly as possible, a nationwide supply chain issue is causing delays.
"As a result, a number of these impacted customers have been receiving estimated bills based on their past use. If the auto-generated estimates based on past use are higher than actual use, customers receive an adjustment. If estimates are lower than actual use, customers are billed for the difference once the meter can be read. Ensuring customers have affordable energy and accurate bills is one of our top priorities. While we strive to have estimated bills match actual use, many variables such as weather, changes within homes and participation in some products or services can impact current use compared to past use. If bills reflecting actual use are higher than expected, Consumers Energy is here to help. We encourage customers to call us to set up a payment arrangement that works for them.
"As we continue to transition remaining customers to upgraded meter models, Consumers Energy and its contractor will manually read the meters. All meters are expected to be upgraded by August. Consumers Energy apologizes for this inconvenience and appreciates our customers’ patience as we work to serve our customers despite these global supply chain shortages.”
It’s unclear how many customers have not had their meter upgraded, but the company says “hundreds of thousands” were replaced over the past two years in preparation for the change.
“What if a lot of these people are automatic pay, and they're old folks like me? Who don’t pay attention?” asked Rose. “Are they getting gouged? And don't know it?”
According to the Michigan Public Service Commission, there are rules which govern utility company billing practices.
They include:
- A utility company shall provide all residential customers with an actual monthly meter reading and can only estimate the bill if an actual reading cannot be obtained.
- An estimated bill must be clearly identified as an "estimated bill."
- When a bill is estimated for two or more consecutive months, the customer must be given the same number of months to pay the bill when an actual reading is obtained. However, the customer must provide access to the meter or provide a reading, if requested by the utility.
- A utility, unable to gain access to a customer's home or yard to read the meter, shall use reasonable alternative measures to get an actual reading, including providing a postage-paid, pre-addressed postcard for a customer to record the reading.
- An estimated bill generated because the actual read is outside the range for the premises usage, shall not be issued in consecutive months.
- If a utility shuts off service for nonpayment, the utility must complete a final read. Reasonable attempts to read the meter must be made before the utility can estimate the bill.
- A utility that cannot obtain an actual meter read shall keep records of the efforts made to obtain an actual meter read and reasons for failing to obtain an actual meter read.
- A utility may render estimated bills to seasonally billed customers in accordance with MPSC approved rules.
At a customer’s request, a utility company is required to provide the customer with an opportunity to read the meter on a regular basis and accurately report energy basis.
However, the utility must obtain an actual meter reading at least once every 12 months to verify the accuracy of customer-reported readings.
If someone thinks their utility company has violated a filing rule regarding estimated bills, they should contact MPSC at 1-800-292-9555.
