NH Utility Regulators Find $2.9M In Overcharges By Keyspan
New Hampshire state regulators say Keyspan Energy Corp., which distributes natural gas, has overbilled its 80,000 customers in the state by about $2.5 million since it acquired EnergyNorth six years ago.
Robert Wyatt, a former EnergyNorth employee who is now a state utility analyst, became suspicious of KeySpan's billing practices based on the bills he got at his own home, said Steve Frink, assistant director of the Public Utilities Commission's gas and water division.
Wyatt began investigating and discovered that although KeySpan began using a different method than EnergyNorth to figure out how much gas each customer used, it never made a corresponding change to the formula used to calculate rates, Frink said.
That led to a formal investigation this fall by the Public Utilities Commission, which confirmed his findings, Frink said.
KeySpan spokeswoman Carmen Fields said the company agrees it has been overbilling customers and owes them a refund. She said the overbilling was a mistake resulting from the acquisition of EnergyNorth and that KeySpan analysts found it and brought it to the PUC's attention before the formal investigation began last month.
However, PUC records indicate the commission had been investigating KeySpan's billing since July.
The anomaly cost the average residential customer only an extra $3.72 per year on an annual bill of $1,800, Frink said. Over six years that charge added up - KeySpan now owes its customers about $2.9 million, including interest, Frink said.
The commission will start hearings on the overcharges next week.
(Dow Jones)
