AUSTIN, Texas – Austin leaders said they finally know why thousands of water bills spiked last fall.

After a six-month review, two Corix contractors are being blamed for low meter readings in August 2017 and then a spike in September.

The city's contract with that vendor expired last year. Austin Energy said those two vendors no longer work for the utility. 

The City of Austin will now work with 17,000 customers to have their bills "smoothed" while they go after the former vendor. Bill smoothing is the process of taking the total water bill for August and September and dividing it by two. The customer’s bill will then be cancelled and reissued.  

"We are pursuing recovery of costs from Corix according to the remedies available to us through the contract," said Kerry Overton with Austin Energy.

The City said there are new policies in place to protect against future billing errors.

Earlier this year, the City issued credits for water bills to impacted customers. Approximately 7,400 customers were expected to receive credits for their bills estimated at $20, but not exceeding $80. The total amount of money going back into residents’ pockets was around $138,000.

Ellen Troxclair, Austin City Councilmember District 8, released the following statement:

“The situation unearthed by Austin Energy contractors affected thousands in September. While I appreciate the effort that went into the investigation, and the new procedures put in place, the City of Austin has a long road to travel to gain the community’s trust back. Utility bills are a big part of anyone’s monthly budget and every customer must be confident that they are being billed accurately. Since taking office, I have implemented the first safety net for those residents affected by unexplained high water bills. I also called for an audit to ensure meter reads and passed a resolution to study other utilities and then create affordability goals for both the water and trash utility. I will continue to be a consistent advocate for lower utility rates and accurate billing practices.”

If you see mistakes on your bill, you are asked to call 311.

City of Austin's visualization of how residents will be credited for water bills after problems with the water meter readers. (Courtesy: Austin Water)
City of Austin's visualization of how residents will be credited for water bills after problems with the water meter readers. (Courtesy: Austin Water)