9 Investigates: Problems with new hardware comes at cost for OUC customers

New hardware costly for OUC customers — 9 Investigates learned problems with new hardware is costing Orlando Utilities Commission customers hundreds of thousands of dollars. The utility is now using new digital technology to determine your bill each month.

But glitches have caused thousands to be back billed for up to three months of service.

Investigative reporter Daralene Jones asked why customers have to pay for the mistake.

“They should've never installed it, because it's not working,” OUC customer Juan Arroyave told 9 Investigates.

Arroyave was speaking on behalf of dozens of his neighbors sounding off on a neighborhood website. They are all furious OUC spent $15 million on new digital technology, plagued with major issues.

“You create a situation where the bill doubles from one month to the next,” Arroyave said.

9 Investigates learned that OUC switched to a digital meter-reading system, installed by a North Carolina company, called SENSUS.

The company has a $15 million contract.

The goal is to provide real-time usage data to customers and save money by eliminating the “real people” who used to manually read meters.

SENSUS technology relies, in part, on an underground cable to communicate with a computer that determines your monthly consumption.

“We've had issues with the cables,” said OUC spokesman Tim Trudell. “It's less than 10 percent of our meters, but any percentage is too much.”

The problem is with water bills -- not electric. And the issue cost OUC $1 million just last year, because customers were under-billed. So the utility had to go back, “estimate your consumption” and back-bill.

The utility covered three months, totaling $586,000. But customers were back-billed for up to three months, totaling $475,000. OUC couldn't immediately tell us how much they've had to back-bill customers so far this year.

“Why are they being forced to eat any of these costs?” Jones asked.

“Obviously, there was consumption,” Trudell responded. “It's not like we're billing them for something they didn't use.”

But it is forcing customers, like Juan's neighbors, to "guess" whether they will be hit with a bill they can't afford because of a mistake by a vendor with a $15 million contract.

“I think it's negligent to install a system that doesn't work in the first place,” Arroyave said.

OUC told 9 Investigates that customers will continue to be back-billed up to three months, if they are under billed. OUC will cover anything after that.

A spokesperson for SENSUS said, in part: “This residential water meter technology was introduced in 2010...it is backed by a warranty. They have shipped more than 3-million meters since launching the product and they are proactively addressing issues with OUC.”

Cox Media Group