Conway Corp. customers undercharged since June
Conway Corporation, the city-owned utility service, sent letters to all customers Wednesday advising that an error in electricity billing resulted in residential and small commercial accounts being underbilled since June.
The letter explained that Conway Corp. had inadvertently charged the lower winter rate since June and that customers would be asked to repay the difference at a rate calculated to make up the difference over the next three months. The extra payment will be added onto customer bills by Conway Corp.
Conway Corp. CEO Richard Arnold said Wednesday that the error was caused when an employee “just forgot to change the rate.”
For the average customer, Arnold said, the difference will come to about $50. If customers wish to make the payment all at once, he said, it can be arranged, also saying that “we do recognize that the economy’s tough, so if there are extenuating circumstances that mean a customer needs more time to make the payments, we’ll look at that.”
Arnold added that the latest consumer price survey conducted by Entergy Arkansas shows Conway Corp. electric service to be the fourth-cheapest in the state, behind Jonesboro, Mississippi County and West Memphis utility services.
Does anyone else find this a
Does anyone else find this a little shady? It seems to me that it was their mistake so it should be their responsibility at least to some extent.
Let's say Conway has 50,000 people. Divide by 3 or 4 for a common household. If their average of 50 dollars is correct that mean this was around a 750,000 dollar mistake.
All those great employees I'm hearing about probably shouldn't be happy with this blunder.
Conway Corp. underbilling.
I agree with jcam61 about this not being the customers responsibility. This situation is like buying a new car and after you have paid it off the finance company tells you that you still owe them because they didnt charge you the right price when you purchased the vehicle.
I think this is what happens when you toot your own horn and publicly brag about your own performance and that of your employees.
I agree. Conwaycorp should
I agree. Conwaycorp should have to eat this. They probably need the money to pay for all the advertising time they are using to try to convince us how good they are.
How is it that Conwaycorp can come after us because of their mistake. If you go to a store and buy something that has been mis-priced, they can't come to you afterwords and charge you the difference.
As usual, Conwaycorp could care less about their customers. They know you can't go anywhere else, so they feel free to pad their pockets.
Its Not Right.....
I agree that Conway Corporation should not be charging the difference to their customers as it was their mistakes. There are some people that live on a month to month basis and just simply will not have the extra cash to pay. They need the money for their kids....not for Conway Corps mistake.
What if?
... the error had been overbilling instead of underbilling?
Fuzzy Math
It seems as though Conway Corporation is thowing this explanation against the wall just to see how much of this bull sticks with the residents of Conway.
Hey Mr. Arnold:
I received a bill yesterday that I owe $80.00 dollars more than I have already paid for my electricity in May and June, and your explanation of why stinks.
Why isn't the actual "billed amount" for summer rates or winter rates shown each month on our bills already?
Also,if your employee can't remember when to change the rate, then why don't you let the residents of Conway know ahead of time that our costs per kwh rate will change on a certain date, and we'll call you or your employee to remind them to change it.
Would you have corrected the rates for all of the residents if that meant sending a refund?
Are the residents paying additional fees as well for any of the following items that showed up in June and July in the electric usage portion of our bill:
CUSTOMER CHARGE fees?
COST OF POWER ADJUSTMENT fees
ELECTRIC FRANCHISE fees
and finally TAXES
None are so blind as those that will not see. We must always remember the Lu'ser.
For once I agree with arbear.
For once I agree with arbear.
I agree with Arbear
ConwayCorp...please explain:
According to a ConwayCorp representative the more expensive summer rates begin on June 1st. Why then was I charged summer rates for the usage shown on my June bill when my meter was read on June 10th. That means that 20 of my "winter rate" days( or 2/3 of my usage) that I used in May were billed at the higher summer rate.
Why am I paying a premium rate for electricity for those 20 days in May?
Isn't This 2009, Not 1909?
Why does the billing system need the rates adjusted manually for winter/summer seasons? I think a 12 year old with basic programming skills could fix that problem and prevent this from hapenning again.
As to Mr. Vaught's comment...
I'd say that in the event of overbilling, Conway Corp. would have probably never credited those amounts back to the customers. I mean, maybe I'm cynical, but I really have my doubts about whether or not a public utility would actually put coins back in my piggy bank.
I try not to quarrel too much with Conway Corp. Generally speaking, they are an asset to this community because they provide a battery of competent services. That said, this is atrocious customer service, or rather disservice. I fully recognize that I have a responsibility to pay full price for what services are provided, but this is *their* mistake and the halfhearted apology, as well as the insulting notion that CC is doing us all a favor by allowing us to play catchup over a period of months, just reeks of consumer fraud.
As I said, I won't gripe about having to pay what I owe, but I will complain about this shabby treatment. We may be at their mercy but we don't merit disrespect.
Customer service
"That said, this is atrocious customer service, or rather disservice."
No argument there, but I do believe the utility would pay back any overbilling for the same reasons it is recouping this summer's underbilling: they are required by city ordinance to charge what they charge, no more, no less.
another thing to think
another thing to think about... this has been a pretty mild summer so the demand for electricity probably hasn't been as bad as past summers. Isn't that that the reason for the so called 'summer rate'? This leads me to wonder... why? Why can Conway Corp not eat at least 50% of this problem. I think that is fair...
Screwed
Mr. Arnold:
Please explain what's fair in your mind about my new tenant who is moving in September 1st and will be paying for the previous tennant's adjusted amount owed for electricity used in June and July due to this ConwayCorp error.
Agree with tripleA
The reasonable compromise here would be for Conway Corp. to acknowledge its error and agree to eat half of the cost of its mistake. Again, making the consumer culpable for the utility's own admitted negligence is inappropriate. The city ordinance was violated by the entity, not the individual.
Same Product, Same Cost
I received my statement Tuesday. I agree. Conway Corp should absorb the cost of their accounting billing mistake. I should not have to pay for a higher rate in the summer than in the winter. If their paying a higher rate for electricity during these periods, it sound like someone needs to do some better negotiating. I’m receiving the same electricity throughout the year, so what’s with the variation in cost. Also, this summer temperatures has not been as nearly as bad as previous summers, so where is the justification for the increase in the rate. There has been very few days with temperatures over 100+ degrees. I hope the people at Conway Corp are reading these comments and realize that their customers are NOT HAPPY with their decisions. I bet a won’t see a Conway Corp satisfied customer service commercial about this.
I just want the facts about news as it happens. I can do without the opinions.
what about customers who moved out during summer?
What about the thousands of customers who moved out of the area (college students among them) during the summer and have already received and paid their final bills? How will Conway Corp recoup that money? They won't. So why should the others have to pay it? Seems that debt will have to be absorbed by those who are still existing customers in the end. Not fair at all. Conway Corp. just put into a place a brand new billing system not more than four or five years ago. How is it that was not built into the program already and that someone could just forget to do it manually each year? They should spend less money on all the advertising (those stupid depictions of guys dressed like a phone, a mouse, etc. making gestures) and cut people a break on this catch-up billing for their mistake.
.
.
Maybe this is a ? for the Arkansas Public Service Commssion
I, CyberCleaner, own a cleaning business. If I perform a carpet extraction at your business and realize that I was not suppose to perform it that month. It is suppose to be performed in 3 months under contract. Do you the customer think that it is fair for me to charge you the extra $300 now and another $300 in 3 months that is due under contract or Should I eat that $300 dollars performed in ERROR on my part because I, the business owner made the MISTAKE.
All I’m saying is as a business owner and a paying customer, Conway Corp made a mistake, “so they say” and they should eat the COST.
SOMEONE ELSE I know seems to think that temps didn’t get high enough this summer (triple digits) for them to get the higher bills that they are use to getting so they are trying to recuperate the funds some other way. Could be, could be NOT…. Who knows? I don’t think the consumers should have to suffer because they have idiots working for them… Maybe this is a question for the Arkansas Public Service Commssion!
they would be breaking the law?
when i talked to a rep. from conway corp they told me that if they did not get the money for the summer rates that would be breaking the law... so doesn't that mean that they have already broken the law by not charging us the correct rate in the first place and now they are MAKING conway corp customers cover for their mistake?
then they try to give you a crappy story about how your bill is going to be lower because you haven't been using as much energy due to the "mild" summer, how is that possible when you are getting extra money added onto your bill plus the "corrected" rate???? and then when the winter rate has begun, or hopefully whoever is supposed to change it does it instead of leaving it for the summer rate while they fix their mistake, you will still have two months of what should be a lower bill be higher because of this.
i wonder if they only have one accountant as well, was it just one person who figured out that they had lost 1.3 million dollars in revenue from last year and it took 3 months to see it! Then again, the accountant and whoever was supposed to change the rate are probably the same person.
Hey, they have to pay for
Hey, they have to pay for that new phone service somehow...I doubt many people are bailing out on Cell phones and ATT home phones to sign up for CC phone service.
AR CHL Instructor
the utility is owned by the City of Conway
My cousin's husband has worked for them for years. Conway Corp is contracted to run the utility, the utility is owned by the City of Conway. The City of Conway should get the complaints about this and maybe that will do some good, maybe not. Remember the fluoride not being put in the water for almost a year before it got out to the press? You know how we've had a rainy summer, her husband brags about how on rainy or inclement weather days the electric workers just sit in their huge breakroom at the servicing center and play cards or dominoes. They get raises every year no matter what, paid insurance, 401K, paid pension plans, free uniforms - tools- etc. And nepotism has been out of control for years there. Sure, some work longer hours when we have severe weather, but it's not that often and they are well paid when they do.
You Have Got To Be Kidding!
My bill is 184.00 for the aforementioned "so called error". Time has come to stand up and be heard, from the citizens of Conway. "No way will we pay" This is a common occurance for monopolies who are the only guns in town. Did the employee get fired? Any QC in place? This kind of tatic is another example of a "do it or die" mentality. Someday the masses "will" overcome, or be buried in mass graves. Just keep voting for these power mongers, that run this city and it's inept utilities, and you'll see what I mean.
News Flash
1. All gas and electric companies in the State have summer and winter rates. (Centerpoint winter rates are the high ones)
2. Under Arkansas Law, the APSC doesn't regulate municipalities (city-owned utilities)
3. Conway Corp did exactly what the APSC's rules state for underbilling. (same # of months that the error occurred to pay back)
4. Uncollectible Account - this is where that 50% or more would go on the books. BTW.. the uncollectible account is used in the rate base calculation. The larger this account is, the higher the rates and EVERYONE gets a piece of that. (I don't want to pay for anyone but myself)
5. As for me, my Conway Corp bill for electricity, water, sewer, cable, and sanitation for one month is MUCH LESS than what Entergy customers pay for their electricity ONLY. (Move outside city limits and find out)
6. How do I know? I work at the APSC.
Still doesn't add up...
so why wasn't any of this communicated in our 'letter' we received in regards to this mistake?
Pilz, I appreciated the additional information. Knowledge is power!!
Agree with tripleA again
These facts certainly could've been brought to the public's attention. Believe it or not, given any rational explanation, people WILL be more understanding.
What was sent to the customers was insulting. It barely even had any trace of contrition. Instead it amounted to "we f'd this up, you'll be paying for it, and in case you needed a reminder, Conway Corp. RULEZ!!!"
And if APSC does not regulate CC, then all the other points are essentially irrelevant. Conway Corp can eat the loss and not have to push it back on the customers, or at least not in the fashion it did.
News Flash by PILZ
Thanks for the INFO on the APSC. Still doesn't make it right. Yes the rates with CC are cheaper than ENTERGY. I use to have ENTERGY as well. I will agree with you on that. But it still doens't make it RIGHT. I had to call ENTERGY's hand on several occassions. JUST like we should call CC's hand. WRONG IS WRONG. The checker at KROGER or WAL-MART is not going to check me out, over charge me or under charge me, then come to my house, call me or write me and inform me of the mistake, now will they. WRONG IS WRONG & if City Hall is involved in any way, we need to be on those steps as well.
Sorry Mark..
I'm usually on your side but I gotta differ with you here. I fell victim to Conway Corps "estimated usage" becasue of a Golden Retriever in my back yard. After three months I was approached by a "meter reader" who informed me that I had been getting estimated readings and he needed to confirm the actual meter reading. My bill went down almost $75 dollars the next month. All I got was a "sorry" no offer of credits or a refund.
I will say as a whole I am happy with C.C.'s service and the people who work there. This just seems a little wrong, they presented a bill, I paid it, this should be a closed case in my opinion at least.
Are you sure?
Conway Corp's estimated billing policy reads as follows:
"Estimates are determined by averaging the customer’s previous month’s usage and his/her usage for that same billing period a year ago.
The next month the customer’s meter will be read and the estimated reading subtracted from that reading. The customer will then be billed for the current month’s usage plus (or minus) any difference between the estimated amount and his/her actual usage."
So, that means that when they finally came and read the actual reading on the meter, the estimated readings would have been subtracted from the actual reading. If they overestimated during the three months of estimated billing, once this was subtracted from the actual reading, you would have been "caught up" and then only paid for the actual KWH's used over the span of the three months.
My math may be wrong on that, but I think their formula ensures that once you are caught up with an actual reading, you are only charged for what you have actually used.
Summer Usage
Rates are higher in the summer because the source of power has to use more expensive fuel to meet the demand. Coal and nuclear is cheap but in the summer suppliers have use peaking units which are gas and almost always more expensive.
The rates paid are negotiated with the suppliers for a fixed rate and Conway has one of the lowest in the state. You definitely don't want to gamble and pay the going price during volatile times.
I live in Sherwood (grew up in Conway) and you guys are still going to come out better than I will in the end. Look at it this way, you got a break on the front.....now you are paying it back. Is that the way our stimulus plan will end up working?
Like most of you said though, some people messed up (why it wasn't automated in today's world is beyond me) and the "oh, sorry" attitude has got to be insulting.
Stand Up And Be Counted!
What needs to happen, is the citizens of Conway need to get together and show up at a Conway Corp. Board Meeting. They have them each month and they are open to the public.
If people want change, you have to unite, stand up and demand it. After all, the city is suppose to work for YOU -
You don't work for the city.
In my opinion, Conway Corp. as a whole is a JOKE. I've seen its operations inside and out. Out-dated equipment, Poor Management and total disregard for the community. I have sat in the meetings and listened as they talk about new ways to generate revenue from the people. Hoping for Dry Summers so people will need more water, hoping for Cold Winters to people will need more Heat...I've listened..I have heard.
This is why I choose NOT to live in Conway.
Together Everyone Accomplishes More
I was one of those who moved
I was one of those who moved and closed my account. Remember you always have to leave a forwarding address. I just received my letter asking me to remit the difference. Debating how much teeth this really has.
......moved
mewellsar, I wouldn't sweat it. You didn't receive the letter, did you? wink..wink
What if you had moved again? You wouldn't had notified CC that the you were moving again and they needed to update your forwarding address. I think they only have teeth with those who still have their services. Of course The Man always has a way of knowing where you're at.
Just forgot!
I have had good experiences with Conway Corp and the electric rate is less than Entergy and some of the electric cooperatives charge. It is easy to understand how it happened. Their leader said an employee "just forgot to change the rate." They just forgot! It is almost impossible to believe that someone didn't catch it sooner. Is management awake? The rate they charge is important to everyone but especially to them (CC) - dollars generated is what it's all about. An employee forgot to change the rate! Presented as a minor problem, a small mistake, and I suppose it is. However, in my experience I've found that those who do not attend to the small things, the minor things, often don't do well with the more important issues. Come on, wake up over there!
I was livid
I was livid about this whole ordeal but after remembering that my utilities are much lower than a friend of mine who lives outside the city limits, I calmed down a bit. I don't think we should pay for their mistake and it is not right. However, even with the additional charge on my bill, my bill will be of a less amount than my friend.
quite a system they've got there....
I pay my bill as issued based on my trust that Conway Corp is billing me properly. Now, I am questioning that my trust is misplaced. Apparently, their mistake is not going to cost them...it is going to cost me. However gracious it may be to allow me to pay it back over the next three months, my bills will still be higher than anticipated for the next three months. I am not an accountant, but I adhere to a budget....apparently unlike Conway Corp where it takes three months to notice a 1.3 million dollar shortfall. However, in the world I live in, if my incompetence causes a customer to be undercharged, it's my loss...not theirs. But, it's a monopoly...I know it, they know it. I just grew up playing the game where 'bank error in your favor' was a happy card!
Do Conway fall under the APSC
Was wondering if they fall under APSC rules since it is city owned
http://www.apscservices.info/pdf/99/99-290-r_9_1.pdf
99-290-R
That Docket is for Rules dealing with the the implementation of Act 1556 of 1999 the "Electric Consumer Choice Act of 1999" (Act 1556) or the deregulation of the Electric Companies in Arkansas by the Legislature. The Legislature repealed the Act in 2001.
I got tired of reading the
I got tired of reading the same thing over and over.
Have none of you ever made a mistake?
Energy costs more in the summer around here, the demand is way higher in the June-August months than the rest of the year. Yes, the demand was down this year and all utilties made less. It is not a non-profit company so if you got overcharged, chances are you'd never find out and they'd keep the money (take Entergy for example). It's not like they are saying they charge you $50 no matter what, they are just upping the kWh a touch. Get over it. There's nothing you can do about it. Cry as much as you want to them, they aren't even listening.