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PRESS RELEASE:
CITY OF PRAIRIE
DU CHIEN TO OFFER REFUNDS DUE TO WATER BILLING OVERCHARGE
NOTE: To clarify the
refund procedure, one-half of the customers will be receiving refunds in
September, the other half in December. It will appear on bills as
"Billing Adjustment".
Date: June 29th 2010
The City of Prairie du
Chien will be refunding roughly $85,000 over the next two billing cycles
to water customers due to a rate increase error, which took place in
June 2009. A recent audit of the city’s water accounts uncovered the
discrepancies. Rates were raised an average of 39 percent as part of an
approved rate increase by the Public Service Commission (PSC) last year. The rates were to have taken effect on June 1st,
2009.
The first impact of the
rate increase should have been reflected in the September 2009 bills,
but were mistakenly applied to the June 2009 bills. “This means, in the
simplest terms, under the previous administration, that the rate
increases were applied to water that had been already used, when it
should have been applied to water being used from that date forward. It
was a mistake, plain and simple,” said City Administrator Aaron Kramer.
“Once made aware of this issue, we quickly began to work with the PSC to develop a plan to refund the money back to the customers.”
Under the proposal
which will go before the Finance Committee on July 1st and
the Common Council on July 6th, the city will refund one-half
of the amount in the September 2010 bills and the other half in
December. The amount will appear as a refund on the future bills. The
city will make the best effort to contact individuals who have sold
their homes or are no longer residing at the locations where they were
billed in June 2009. Anyone who falls under that category should contact
City Hall to make arrangements for their refund.
“We are literally
talking about hundreds, if not thousands, of separate water billing
accounts,” said Kramer. “We have every intention of returning each and
every dollar of the overcharge to those customers impacted by this
error.” |