Understanding ReconciliationWhat is Reconciliation?
How does MyUsage determine what is charged?
All utility charges except electric usage are averaged based on previous usage history. This includes water usage and flat rate items
like solid waste, drainage and facility fees. Actual billing periods vary in length from approximately 28-33 days. However, MyUsage
divides the average charges by 30.4 days and that is the amount deducted daily.
What does this mean?
Once a month, when the water meter is read the account is reconciled. This is done to ensure that all of the water usage is
accurately charged to the customer, average daily charges are updated accordingly and any flat fees are balanced.
For example, if a customer paid in MyUsage for 32 days and the actual billing cycle was 29 days, flat fees for solid waste, drainage
and facility fees would have been paid for 3 days too many. This has to be corrected in MyUsage so customers are not charged
inaccurately. The same thing happens if the customer has paid for fewer days than what are in the actual billing cycle.
Another example is if the average water usage was set for 3000 gallons for a month and after turning on a sprinkler system, the
customer used 8000 gallons. Once the meter is read in the normal billing cycle, the extra usage would have to be added back to
the charges in MyUsage and the average water use charges would need to be updated to more accurately reflect actual charges
that would be expected.
Reconciliation charges or credits show in the Misc charges.
What does reconciliation look like?
Remember, if there is an unpaid balance the Misc charges will go
up when a payment is made because the amount of money going
toward the unpaid balance will be included in that charge section.
Once a month, the misc charges will go up or down on a day when
no payment is made. This represents the reconciliation amount to
correct billing to actual usages and fees for the billing cycle.
Why would a few days of difference change the amount several
dollars?
Using a simple, easy to understand number, this is the explanation.
If all the fixed fees totaled $30, MyUsage would estimate the daily
cost to be roughly $1 per day. Let’s assume that month’s billing
period is only 28 days long.
1) Only 28 $1 payments have been made.
2) $30 divided by 28 days is $1.07 per day not $1.
So, $28 was paid, but that is $2 less than what is required. So the
reconciliation would adjust the amount due to accurately reflect
monthly costs for service.
If Misc charges are normally $3, the difference would be $6. If
actual water usage that month was higher than the previous
average, that would also be a part of the reconciliation balance
difference.
However, if the reconciliation charge is over $10, we will attempt to
reach the customer and give them the opportunity to either have
the amount deducted from their credit or add it to unpaid
balances.
-$11.80
-$20.89
$156.38