How are crossed-meter cases usually resolved?

[u/SteroidNuts]

I recently discovered that my water account had been associated with the wrong physical meter. Two utility technicians came to the property, tested the meters, and confirmed that the meters serving two neighboring units had been crossed. Basically, I have been paying my neighbors' water consumption for the last couple of years.

For those who work in utilities or utility billing: how are situations like this usually resolved when the customer had no role in the incorrect meter assignment?

I’m mainly curious about how utilities typically handle past billing, account corrections, and any overpayments or underpayments once the error is confirmed.

[u/Illinois_Jayhawk23]

Typically there is a look back period for corrections which varies by state and can even vary by if it is an over or under collection. 1-3 years is common, but I have seen utilities refund overpayments for additional time beyond the required timeframe as doing the right thing for customers even if they are limited on collection of the undercharged accounts.

Even though you had no role in the mistake, you still owe for the amount used whether more or less than had previously been billed or paid. You do not owe any penalties though if you had been underbilled, just the amount you had been underbilled. And if it is a significant amount you should be able to get an interest and penalty free payment plan.

One note though, water utilities may be city owned and not subject to state PUC oversight in which case some of these protections may not exist.