2017 Billing gap recovery, what it means to members
What do you mean by billing gap?
At Kenergy, member-owners’ monthly bills are not paid to date. The co-op’s billing system lags behind approximately two months. This means Kenergy’s entire membership has used about a month’s worth of electricity it has not been billed for yet.
How did this gap occur?
In the past, when a member signed up for service, Kenergy took a meter reading to begin the new member’s billing. The first statement the new member received requested a meter reading only, which means the new member did not remit a payment – just a meter reading. The following month (or after about two months of service) the new member was billed according to the reading provided after the first month of service. Therefore, the Kenergy billing system lags behind about two months.
How many days are in the gap?
A 21-day billing gap exists, meaning members have used 21 days’ worth of electricity they have not yet paid for. Across Kenergy’s entire system, the gap amounts to $7.5 million in unclaimed revenue. Although it has not been billed, the cooperative shows that amount as revenue because it is electricity that has been used but not paid for.
Why does the cooperative need to recover the gap now?
Kenergy’s new metering system allows the cooperative to provide up-to-date billing, which is an industry standard. Under the former metering system, members often were confused by seasonal fluctuations in their bills brought on by weather extremes that happened two months prior. Up-to-date billing gives members the opportunity to see their monthly usage just days after the system captures a meter reading.
How will Kenergy recover the gap?
Instead of asking members to pay for 21 days of electricity in one bill, Kenergy will spread it out during 2017. On average, members will pay an extra couple of days per month.
Will this be an ongoing payment?
No. Members will pay for their unbilled 21 days of service in 2017, and then, the gap will be recovered.
How much extra will this “gap recovery” cost me monthly in 2017?
With Kenergy’s current price of electricity, the average residential member will pay approximately $8.92 more per month during 2017.
How will I know how many extra days of usage are being added to my monthly bill statement?
In the “Monthly Usage” area of members’ bill statements, members can see how many days of usage they are being billed for that month. Every Kenergy bill has a monthly usage chart (example below) with shows the number of days billed that month (circled in red).