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Oklahoma Association of Municipal Attorneys

Water Meter Fee

Phillip Morton

Wed, Sep 9, 2020 9:13 PM

So, the municipality wants to propose an ordinance that will add a one time
$200 fee to the customer's utility bill if the city has to go out to a
customer's residence more than twice due to the failure of the customer to
replace/repair a faulty meter base.

I want to tap into the collective intelligence of those far smarter than me
to see what you all think in terms of tweaking the existing plan to make it
less problematic or in terms of alternativer ideas. Thanks!

Phillip N. Morton, J.D.
P.O. Box 1886
Ada, OK 74820
Phone: 580-759-0049
Fax: 580-759-2177
Email: MortonLawOffice@gmail.com

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I have a municipality that has recently installed smart meters. Apparently, there are customers who are not repairing/replacing their faulty meter base (the meter base is the responsibility of the customer), which is causing the smart meter to shut off due to overheating; subsequently the city is having to send crews out at all hours of the day and night to address the problem. So, the municipality wants to propose an ordinance that will add a one time $200 fee to the customer's utility bill if the city has to go out to a customer's residence more than twice due to the failure of the customer to replace/repair a faulty meter base. I want to tap into the collective intelligence of those far smarter than me to see what you all think in terms of tweaking the existing plan to make it less problematic or in terms of alternativer ideas. Thanks! Phillip N. Morton, J.D. P.O. Box 1886 Ada, OK 74820 Phone: 580-759-0049 Fax: 580-759-2177 Email: MortonLawOffice@gmail.com CONFIDENTIAL AND PRIVILEGED COMMUNICATION: This electronic mail transmission, as well as any attachments, may contain confidential information that is legally privileged. If you are not the intended recipient, any disclosure, copying, distribution, or use of any of the information contained in or attached to this message is STRICTLY PROHIBITED by law. If you have received this message in error, please immediately notify us by replying to this email or by calling *580-759-0049*.

Jeff Bryant

Wed, Sep 9, 2020 9:56 PM

It is generally assumed that smart meters allow the utility to function more efficiently by reducing labor costs. Over time, the argument is that the cost of installing the new meters for existing customers will eventually pay for itself. Some consideration of how much it would cost over time for the Utility Authority to replace all faulty meter bases at its own expense might be an approach worth considering. If existing utility rates are not adequate to fund this expense with a revenue bond, then perhaps revenue could be generated by a system-wide rate increase that could be born equally by all utility customers.

Having said that, I do realize there are a lot of variables with any utility system, number of customers, existing rate structure, feasibility of implementing over time, etc . . . My suggestion above does not presume to have factored in all the variables, but maybe suggests an approach that could be affordable and more readily accepted by existing customers.

Jeff Bryant

OMAG’s COVID-19 Info Page: https://www.omag.org/covid19-faq

Jeff H Bryant
Director of Legal Services
Associate General Counsel
jbryant@omag.org mailto:jbryant@omag.org

[OMAG Small Logo Smooth]
3650 S. Boulevard
Edmond, Oklahoma 73013
Phone: 405-657-1419
Fax: 405-657-1401
www.omag.org https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0

From: Oama oama-bounces@lists.imla.org On Behalf Of Phillip Morton
Sent: Wednesday, September 9, 2020 4:14 PM
To: oama@lists.imla.org
Subject: [Oama] Water Meter Fee

So, the municipality wants to propose an ordinance that will add a one time $200 fee to the customer's utility bill if the city has to go out to a customer's residence more than twice due to the failure of the customer to replace/repair a faulty meter base.

I want to tap into the collective intelligence of those far smarter than me to see what you all think in terms of tweaking the existing plan to make it less problematic or in terms of alternativer ideas. Thanks!

Phillip N. Morton, J.D.
P.O. Box 1886
Ada, OK 74820
Phone: 580-759-0049
Fax: 580-759-2177
Email: MortonLawOffice@gmail.com mailto:MortonLawOffice@gmail.com

CONFIDENTIAL AND PRIVILEGED COMMUNICATION: This electronic mail transmission, as well as any attachments, may contain confidential information that is legally privileged. If you are not the intended recipient, any disclosure, copying, distribution, or use of any of the information contained in or attached to this message is STRICTLY PROHIBITED by law. If you have received this message in error, please immediately notify us by replying to this email or by calling 580-759-0049.

Just a few thoughts about how existing utility customers generally react when they are being charged more individually for essentially no increase in service, and then as here, for an improvement that will theoretically reduce operation cost to the Utility Authority. Most utility customers have strong visceral reactions to such a scenario. It is generally assumed that smart meters allow the utility to function more efficiently by reducing labor costs. Over time, the argument is that the cost of installing the new meters for existing customers will eventually pay for itself. Some consideration of how much it would cost over time for the Utility Authority to replace all faulty meter bases at its own expense might be an approach worth considering. If existing utility rates are not adequate to fund this expense with a revenue bond, then perhaps revenue could be generated by a system-wide rate increase that could be born equally by all utility customers. Having said that, I do realize there are a lot of variables with any utility system, number of customers, existing rate structure, feasibility of implementing over time, etc . . . My suggestion above does not presume to have factored in all the variables, but maybe suggests an approach that could be affordable and more readily accepted by existing customers. Jeff Bryant OMAG’s COVID-19 Info Page: https://www.omag.org/covid19-faq Jeff H Bryant Director of Legal Services Associate General Counsel jbryant@omag.org<mailto:jbryant@omag.org> [OMAG Small Logo Smooth] 3650 S. Boulevard Edmond, Oklahoma 73013 Phone: 405-657-1419 Fax: 405-657-1401 www.omag.org<https://na01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.omag.org%2F&data=02%7C01%7Cksesock%40omag.org%7C7b0af7708d2145459d0008d5d005912d%7Cb13aadd514d84b918cf485be9d556ad7%7C1%7C0%7C636643644718063768&sdata=O5U4CEM0kJLxSbEQIcdB%2BtRnRqcj9gWhJquY26D8F1o%3D&reserved=0> From: Oama <oama-bounces@lists.imla.org> On Behalf Of Phillip Morton Sent: Wednesday, September 9, 2020 4:14 PM To: oama@lists.imla.org Subject: [Oama] Water Meter Fee I have a municipality that has recently installed smart meters. Apparently, there are customers who are not repairing/replacing their faulty meter base (the meter base is the responsibility of the customer), which is causing the smart meter to shut off due to overheating; subsequently the city is having to send crews out at all hours of the day and night to address the problem. So, the municipality wants to propose an ordinance that will add a one time $200 fee to the customer's utility bill if the city has to go out to a customer's residence more than twice due to the failure of the customer to replace/repair a faulty meter base. I want to tap into the collective intelligence of those far smarter than me to see what you all think in terms of tweaking the existing plan to make it less problematic or in terms of alternativer ideas. Thanks! Phillip N. Morton, J.D. P.O. Box 1886 Ada, OK 74820 Phone: 580-759-0049 Fax: 580-759-2177 Email: MortonLawOffice@gmail.com<mailto:MortonLawOffice@gmail.com> CONFIDENTIAL AND PRIVILEGED COMMUNICATION: This electronic mail transmission, as well as any attachments, may contain confidential information that is legally privileged. If you are not the intended recipient, any disclosure, copying, distribution, or use of any of the information contained in or attached to this message is STRICTLY PROHIBITED by law. If you have received this message in error, please immediately notify us by replying to this email or by calling 580-759-0049.