CMP officials report internal audit not showing problems with billing or metering systems

CEO Doug Herling welcomes Maine PUC independent audit
Fri, 04/06/2018 - 8:30pm

     As the Maine Public Utilities Commission prepares for an audit examining customer complaints into Central Maine Power Co.’s billing and communication systems, an internal company one is nearly complete. 

    During a Friday morning conference call with broadcast and print reporters across Maine, President and Chief Executive Officer Doug Herling reported an internal investigation regarding 1,580 customer complaints found no problems with smart meters or the new billing system artificially increasing usage.

    “We welcome the PUC’s investigation as an independent audit and review of our system. We will fully cooperate and expect their findings to be similar to our own investigations,” Herling said.

    Prior to the Maine PUC announcing March 1 it would launch a forensic audit into CMP customer complaints regarding the utility’s metering, new billing system and customer communication procedures, CMP already had already begun its own investigation. Hebling reported over 1,000 audits of  the 1,580 complaints were completed using a team of experts.

    Herling was joined in the press conference by Controller, Treasurer and Clerk Eric Stinneford and Vice President-Customer Service Beth Nowack Cowan. The three explained steps taken by CMP since customer complaints began.

    The increased call volume in January was actually expected, because CMP unveiled its new billing system.

    In 2017, CMP increased customer service representatives by 38 percent in preparation for an anticipated increase in questions about the new billing system. CMP received more calls about the new billing system, but also received more calls about larger than expected electric bills. As the complaints mounted, the customer service focus switched to explaining why usage and ultimately electric bills were in many cases two to three times higher than expected.

    In response to customer complaints, CMP now has 180 agents in the call centers. The company also has a dedicated team of six representatives calling customers during regular business hours. During nights and weekends, customer service representatives perform call backs when volume is low.

    “When the focus switches, it takes time getting people ready to answer those complicated questions. So that is why customers had trouble contacting us,” Cowan said.

    Herling outlined several reasons for recent customer service problems. In late October, a major windstorm had the largest impact on customer service in the company’s 120-year history. In November, customers started receiving bills in the new format. The combination resulted in a backlog of calls.

    As customer calls mounted late last year, they went into overdrive this winter. In December and January, the northeast experienced a cold snap which Herling described as the “worst in 20 years." CMP characterized the cold snap, windstorm and new billing systems as contributing to customer frustrations resulting in 1,580 complaints to Maine PUC.

    In January, another major change impacted customers’ bills. The standard offer increased 18 percent which increased overall customers’ bills by 8 percent, according to a Maine PUC study. Standard Offer is for customers who don’t choose a provider so they receive electricity from a provider arranged annually through a Maine PUC competitive bid.

    But for hundreds of CMP customers, a record cold snap and standard offer increase didn’t explain double or triple monthly electric bills. Reporters asked about situations where customers experienced usage spikes from 11 p.m. to 4 a.m. or how one bill jumped from $500 to $1,700 per month. Herling declined to discuss individual cases. He encouraged customers with complaints to call the dedicated teams to review charges and questions.

    “In several cases, we’ve discovered why customer usage increased to their satisfaction,” he said.

    In the aftermath of the increased complaints, Herling advised customers to use tools provided by CMP in managing their electricity consumption. He suggested customers sign up for usage alerts and use the energy manager and calculator provided on the company’s website.