Booklet - Page 5
DON'T GET MAD ABOUT YOUR
UTILITY BILLS...GET EVEN!
- "Our utility expense is three times what we had budgeted for this year!"
- "How can we afford to keep paying these utility bills without a special assessment and monthly increases in dues to the homeowners?"
- "Why do our association's utility bills continue to increase even though we installed low flush toilets, gas computer controllers, hot water pipe insulation, timers for the spa, irrigation computer controllers, etc.?"
These are just a few of the many questions that are asked each day by concerned and angry homeowners, board members and property managers. And, we will tell you what we tell them... "Don't get mad, get even!" "But how do we get even?" they ask. "Simple," we tell them. "Have your association's utility bills audited. "No, not by the treasurer, the property manager, the CPA who lives in the association, etc., but by a professional utility bill auditor who does nothing but audit utility bills every day!" (Would you take your taxes to a mathematics instructor or have your car repaired by any new car dealer just because they know about numbers or cars?!)
No Risk
Without any risk to the association, you could reduce the annual operating expenses by reducing these utility bills and increase your reserves. How? Well, a good utility auditor will be able to analyze the association's utility bills and place these accounts on less expensive rates or correct billing errors. This will reduce the per unit cost of the utility - for example, a rate reduction of $.15 per kilowatt hour to $.10 per kilowatt hour. These alternate rates are generally available to you, but the utility company does not let you know about them. Why? Because they will lose money! And what about the association that installed all of the energy-saving equipment to reduce their bills? Well, they probably did reduce their bills for a little while because the equipment did reduce the amount of gas, electricity, or water used. But, sooner or later, the utility rates increase on a per therm, per kilowatt hour, or per cubic foot of water basis and, even though less is used, you pay more for each unit, so the savings generated by this equipment "disappears." However, if the utility auditor reduces the per unit cost of the utility, the association sees an immediate savings that continues on a short and long term basis!
Utility auditor fights for you
Many times, significant billing errors that have occurred since the accounts were established are found. These errors usually result in thousands of dollars in overcharges to the association. A good utility auditor will then present the guilty utility company with two alternatives:
- pay the association all of the overcharges since the date the error originated or
- pay a good attorney to defend themselves in court because they will need all the help they can get!
Since most utilities have never been challenged since Ben Franklin discovered electricity, they will opt for alternatives. Then it is up to the utility auditor to "go get 'em." The utility auditor should absorb all legal expenses necessary to get a full refund for the association (plus accumulated interest, punitive damages, and anything else the court will allow, since the utility company is wasting everyone's time anyway). Some of these cases against utility companies may take years to complete. However, when that utility company loses and has to write the association a rather large check, it is worth the wait. Plus, the chances of that utility company ever overcharging the association again are remote, to say the least! So remember - the next time you get angry about your utility bills, don't get mad... get even!
Many times,
significant billing
errors that have occurred since
the accounts were established
are found!
Pacific Utility Audit, Inc. is
located in South Lake Tahoe, CA.
They audit utilities in California, Nevada, Oregon, and Washington.
Contact Us For A Free Proposal Package
Dealing With Utility and
Telephone Companies
The utility and telephone
companies'
job is usually not done well because
of the following problems:
- Lack of expertise and training
Employees not up to date on all
changes in the utility environment. - Too small staff and budget
- Outdated laws and procedures
- No compensation for reporting mistakes and errors
- Handling of several other projects
- Predetermined opinion by utility and telephone employees
- Misinformation
- Inadequate company supervision
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