04 NCAC 11 R07-25. UTILITIES COMMISSION

R7‑25     ADJUSTMENT OF BILLS FOR METER ERROR

(a)  Meter Fast.

(1)           Whenever a meter in service is found, upon periodic, request or complaint test, to be more than two percent fast, additional tests shall be made at once, to determine the average error of the meter.

(2)           Whenever a meter is found, upon periodic, request or complaint test, to have an average error of registration of more than two percent (2%) fast, the utility shall recalculate the monthly bills for a period equal to one‑half of the time elapsed since the last test, but in no case shall this period exceed six (6) months. (See exception noted in subsection (d).) The method of recalculating the monthly bills shall be as shown in the following example:

Example: A meter upon test was found to register five percent (5%) fast. The consumption registered for a billing period previous to test was 105,000 gallons. The error in registration is determined by dividing 105,000 by 100% plus 5% or 105% which result is 1,000, this multiplied by 100 is 100,000 gallons, which is the proper amount to be billed. After making such recalculations the utility shall refund to the customer an amount equal to the difference between the amount previously billed and the amount calculated as being the proper charge.

(b)  Meter Slow.

(1)           When a meter, upon periodic, request or complaint test is found to have an average error of more than two percent (2%) slow, the utility may recalculate the monthly bills for a period equal to one‑half of the time elapsed since the last test, but in no case to exceed six (6) months. The method of recalculating the monthly bills shall be as shown in the following example:

Example: A meter upon test was found to register five percent (5%) slow. The consumption registered for a billing period previous to test was 105,000 gallons. The error in registration is determined by dividing 105,000 by 100% minus 5% or 95% which result is 1105.26, this multiplied by 100 is 110,526 gallons, which is the proper amount to be billed.

(2)           After making such recalculations the utility may collect from the customer an amount equal to the  difference between the amount previously billed and the amount calculated as being the proper charge.

(c)  Percent Error. - It shall be understood that when a meter is found to have an error in excess of two percent fast or slow, the figure for calculating the amount of refund or the amount to be collected by the utility shall be that percentage of error as determined by the test, i.e., it is held that it is the duty of the utility to maintain the accuracy of its measuring devices as nearly 100% as is commercially practicable. Therefore, percent error shall be that difference as between 100% and that amount of error as is indicated by a proper test.

(d)  Refunds. - The burden of maintaining measuring equipment, so that it will register accurately, is upon the utility; therefore, if meters are found upon test to register fast, and if time for periodic test has overrun to the extent that one-half (1/2) of the time elapsed since the last previous test exceeds six months, the refund shall be for the six months as specified in subsection (b), and in addition thereto a like refund upon those months exceeding the periodic test period, provided, however, that the Commission may relieve the utility from this requirement in any particular case in which it is shown that the failure to make the periodic test was due to causes beyond the utility's control. No bill shall be recalculated on account of slow meter if the meter has not been tested within the periodic test period.

(e)  Notification. - When a meter is tested and it is found necessary to make a refund or back-bill a customer, the customer shall be notified in writing and a copy of said notice filed by the utility.

(f)  Nonregistering. - If a meter is found not to register for any period, the utility shall estimate the consumption, based on a like period of similar use.