LARNED, Kan. (KSNW) – Midwest Energy customers in the city of Larned may be eligible for a refund credit due to a miscalculated rate last year.
Friday, the City of Larned released a statement providing information to residents about a miscalculated market rate, and their right to a refund.
Larned entered into a new contract with a long-time provider, Midwest Energy, in March of 2019.
Midwest Energy is a customer-owned cooperative electric and natural gas company that serves 93,000 customers in 40 counties in western Kansas according to the company website.
According to the City of Larned, the new contract with Midwest Energy had a miscalculated market rate for customers, which both city staff and Midwest Energy noticed. Afterward, both entities jointly began working on getting to the root of the issue.
“My understanding that it was basically discovered by both groups,” said Communications Director Mike Morely with Midwest Energy. “We looked at that invoice and said, you know, this seems a little high. The city of Larned did the same.”
After MWE performed an internal audit, it was found that part of the formula was incorrect on a spreadsheet overbilling the city by $232,130 from March to November 2019. Two other cities, Stafford and St. John, were also overcharged.
All three cities were consulted by Midwest Energy who gave them the choice of three options of re-payment, all of which accepted. St. John and Stafford have been reimbursed in full.
Larned has created a webpage for customers to submit their requests for refunds. Visit the site here. Submit the account holders’ name, email address, service address, and utility account number.
The deadline for forms is June 1, 2020. All refunds are expected to be back in the hands of customers not later than December 31, 2020.
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