WSNIA - The Educator

INFORMATION ♦ EDUCATION ♦ ENFORCEMENT

THE EDUCATOR - Fall 1997

Why are Utility Bills So High?

The utility industry loses over $6 billion annually due to energy theft. Unsuspecting ratepayers absorb the rising cost of energy theft in their power and gas bills. Many utility companies, in tandem with local law enforcement agencies, are actively working together to address and minimize this escalating problem.

Utility companies approach energy theft in many different ways. Most are beginning to see the benefits of having a Revenue Protection Department. Companies that have created this department are keeping their investigators extremely busy. A revenue -protection on investigator's first task is to educate utility industry people and law enforcement officers about energy-theft detection, whether underground or overhead. A majority of energy diversions are reported to investigators by four main sources: (1) utility company service personnel, (2) law enforcement agencies, (3) tips from informants and (4) computer print outs showing usage patterns.

Second, revenue protection investigators must investigate each situation reported. This can be a very time-consuming process and often includes other departments, utility companies and/or law enforcement agencies. Once the diversion/theft is verified, charges are filed for defrauding a public utility and the criminal is billed for lost revenue.

Cooperation is the key to solving the present problem of energy theft. Departments within utility companies must work together to locate theft. Utility companies must unite to acknowledge and manage the severity of the situation caused by this criminal activity. Law enforcement agencies are a critical link in solving this dilemma. This cooperation link can work in both directions. Frequently, law enforcement agencies encounter situations that require assistance from utility companies. Most utilities require a subpoena before releasing customer information, which might include usage history. It is imperative to law enforcement officers to establish a close working relationship with a knowledgeable utility employee. This ensures accuracy and dependability and enables both participants to save time and energy during an investigation. Revenue protection departments and law enforcement agencies can alert each other of pending events to the benefit of all parties involved.

Energy theft situations vary. Some may be overhead, underground or inside billing meters. These diversions may be difficult to detect by the untrained eye. Now that growing indoor marijuana has become a multi-million dollar industry, growers have found more sophisticated ways to lower their electric bill. Energy diversion services information ("how to steal energy") is now available on the Internet.

In conclusion, your local utility is a valuable asset, with service people available to investigate suspected tampering situations. If you have questions regarding energy diversion, please contact [your local power company.