Many American homeowners have faced frustrating situations with their water bills due to leaks and delayed repairs. In your case, American Water (AM Water) estimated your bill while there was an undiscovered leak outside your house. Unfortunately, this type of billing issue is more common than one might think, and it can lead to unexpectedly high water charges.
Why did your bill get so high?
The problem began when your water usage was not being measured accurately. Instead of basing your bill on actual water usage, AM Water was estimating your consumption. The estimates didn’t account for the water leakage caused by a damaged pipe outside your house. As a result, the bills escalated over time, especially because the leak went undetected and unresolved for two months.
Many utility companies in the U.S. rely on estimated billing when they cannot access a meter or when there is a disruption in meter reading. Unfortunately, this can lead to errors, especially if there are underlying issues like a leak. According to the Environmental Protection Agency (EPA), an average household leak can waste over 10,000 gallons of water per year, and leaks are responsible for significant overcharges if not detected promptly.
What’s the responsibility of AM water?
One crucial factor in this situation is your service line protection plan, which you pay for through AM Water every month. This type of insurance is supposed to cover the costs of water line repairs, including pipe leaks. According to American Water Resources, which provides these protection plans, homeowners are generally covered for repairs up to $10,000 for water lines under normal wear and tear.
If the delay in repairs occurred due to AM Water or its contractors, it’s possible that the extended billing during that time should not have been your financial responsibility. When water utilities are slow in resolving issues, customers should not be left holding the bill. Some utilities provide goodwill adjustments or credits, as you experienced when AM Water credited $1,100 after your complaint.
Why is AM water still charging you?
While the $1,100 credit was provided, you are still facing a $1,900 balance. AM Water’s stance is likely that while the repair was covered by insurance, the water used (or wasted) during that period is still your responsibility. Utilities often argue that they can only provide credits for the leak repair itself, not for the water consumed, even if it was the result of a leak.
However, many U.S. water utilities have policies allowing customers to request adjustments for water leaks. If your pipe leak qualifies as an underground or external leak, some utility companies offer leak adjustments or forgiveness, reducing the burden of such large bills.
What can you do next?
- Dispute the bill further: Given that you already received some credit, there may still be room for negotiation. Continue pressing AM Water to explain why the credit was insufficient. You might want to ask for a full leak adjustment, which many utility companies offer in goodwill for pipe leaks caused by wear and tear.
- Board of Utilities or Public Utilities Commission (PUC): You’ve already contacted the Board of Utilities and your senator, which is a good step. These bodies have oversight over public utilities and can sometimes help mediate disputes. Continue following up with them, especially if AM Water is not responding to your emails or calls.
- Consumer protections: Depending on your state, there may be consumer protection laws that give you leverage. Some states have regulations that require utilities to address disputes and provide fair billing adjustments in cases of meter inaccuracy or utility-related issues
- Legal assistance: If you continue to face difficulties, consider seeking legal assistance. Utility bills that escalate because of systemic issues can sometimes be contested, especially if negligence can be proven.
