UCAN

Consumer beware.  LTD Financial Services, LP is a debt collection company that appears to harass consumers whether they owe a debt or not.  One of our UCAN senior members was a victim of this practice.  LTD Financial has a D+ rating with the Houston BBB where as of 3/4/10, 171 complaints were processed over a 36-month period of time.  135 of the complaints were regarding "Billing or Collection Issues".  Our Chinese senior said the company called her incessantly and used abusive tactics to collect a debt she didn't owe.  The company called her neighbors and family members to try to humiliate her into paying the debt. The customer alleged a racial slur was directed at her too. The customer's experiences match a Federal Trade Commission initiated civil penalty settlement against the company in the amount of $1.375 million.  Threats to consumers included garnishing consumer wages, seizing their property, and initiating lawsuits or criminal actions against them if they refused to pay.  The owners and top managers were permanently prohibited from these practices. 

Even though the FTC settlement clearly mapped out what tactics could be used so as not to violate the Fair Debt Collection Practices Act, UCAN assumes based on its member's experiences, that the company's profits throughout the country far outweigh the settlement fine and a D+ BBB rating.  Furthermore, there's a question as to what good settlements do as opposed to putting the "bad actors" out of business and filing charges against owners, directors and top management when a company continues "business as usual".

UCAN's advice is to know your rights, exert them if you're the target of such illegal practices, and post comments on our web site. 

60 Minutes recently featured a story about a fuel cell generation system offered by Bloom Energy.  Called a "Bloom Box",  it produces electricity from natural gas.   It represents an exciting glimpse into future energy systems.  But is it ready for prime-time today?   Not really -- unless you've got a few hundred thousand dollars sitting around collecting dust. 

Currently, a 100-kilowatt Bloom Box array costs around $700,000 to $800,000, or $7,500 a kilowatt....and this is after incentives that cover around 50 percent of the costs. (This according to Michael Kanelos)  The company claims that within 10 years it can have residential boxes that would cost between $2-$3,000, but that is more wish than will.

Bloom Energy isn't the only fuel cell company.  Panasonic started selling home fuel cells in Japan last year that generate around 1 kilowatt, not enough to power a complete household, for $30,000 before incentives, or $15,000 if you factored in U.S./California incentives. ClearEdge Power has a 5 kilowatt fuel cell that costs $56,000 and drops to the $30,000 to $25,000 range after incentives. Ceres Power in England will come out with a fuel cell made in part with diesel components next year.  Meanwhile, a gaggle of automakers are working on developing fuel cell generators for their cars -- these scaled-down generators could be readily transformed into residential generators and could be available in less than 10 years. 

Another problem:  Bloom Boxes rely upon natural gas as a fuel source.   Bloom Box Buyers (BBBs) will have to contend with fluctuating gas prices.  Currently, natural gas prices are at historical lows.  But it is also a historically very volatile commodity and natural gas buyers all share ulcers and therapy costs from trading in this price-spastic fuel source.   In ten years, natural gas may be very costly....or could continue to be dirt cheap.   Anyone who tells you which way natural gas costs are headed is to be disbelieved.   And methane and biogas generally tend to track natural gas prices.  So those seeking renewable gas sources will be similarly challenged.

Yet another problem:   Bloom Boxes are complex devices.  They contain fans and other mechanical objects and they are an unproven device that will no doubt have some glitches.   In contrast, PV (photovoltaic) cells have no moving parts, have a proven operational record and are usually warranteed to last 25 years or more. One of the big hurdles that Bloom will have to cross is the reliability of the ceramic/zirconium plates inside the fuel cell. According to Kanelos, these plates, which convert gas to electricity, must operate in an 800-degree Celsius environment without becoming distorted or corrupted. User data will be heavily scrutinized. Sources say that the plates have a lifetime of five years: replacement at this pace is contemplated in the 9 to 10 cents a kilowatt hour price. If replacement occurs at a faster rate, it could throw off the costs. Add to that the fact that Underwriters' Laboratory and hundreds of utilities have tested and tinkered with photovoltaic panels and wind turbines for years. Bloom will have to go through the process of utility reliability testing, which will take a number of years, before it can start selling to residential customers.

Granted, offsetting these problems are Bloom's advantages.  It can produce power 24 hours a day whereas PV only produce during the day and wind turbines are only active when the wind is blowing.   Bloom also permits for electric storage;  fuel cells are by their very nature electricity storage devices. They could compete very favorably against expensive lithium and sodium battery technologies.   And Bloom offers some very enticing potential add-ons.  For example, if they add plumbing to the Boxes, they could potentially turn the fuel cells into hydrogen-from-water converters.   This is a Holy Grail capability that could totally transform our energy economy.  

Yes, there is a lot to be excited about.  Fuel cell generation holds great promise.  Bloom Energy certainly is tapping into that excitement.   Whether it delivers more than the General Electrics, Siemens, Ballards, Panasonics, Samsungs, Clear Edges, large multinational automakers, and assorted other large companies pursuing fuel cell technology isn't clear.   What is clear is Bloom Energy pulled off a marketing coup by getting featured on 60 Minutes.  For that accomplishment, alone, they deserve some props.

Rising water costs! Panic! Chaos! Anarchy! Recently, we've received many calls from loyal members and viewers rightfully angry about their high water bills. While we are ramping up to scrutinize City Water & Sewer department rates and operations, we want to give you an explanation of a portion of your bill--specifically, the baseline fees. This post will not be a commentary of the high cost of water, but an informational guide to a portion of your water bill and why that portion is so high.

Arguing the financial benefit, the City switched to a bi-monthly billing cycle in early 2003. This means that instead of being charged for one month per bill, you are charged for two months' water use per bill. Although the City claims bi-monthly billing "will save the Water and Metropolitan Wastewater Departments $630,000 in printing and mailing costs each year," [http://www.sandiego.gov/water/rates/billing.shtml] it does nothing to soothe the sticker shock when you open a water bill for hundreds of dollars. Bi-monthly billing is important to note because although you are paying the same amount annually, each bill consists of a large payment equivalent of two months' water use.

The City charges you baseline fees on a bi-monthly basis. There are two baseline fees charged on your water bill. The first fee is the baseline water fee in the amount of $35.42.  The second fee is the baseline sewer fee in the amount of $28.64. 

What does this mean to you? If you are a City of San Diego single-family residential water customer, you will pay the City $64.06 every two months--before you use a drop of water! Annually, the baseline fee costs you almost $400 just for the privilege of being able to receive water. Allegedly, the baseline fee reflects the operational costs of maintaining the water infrastructure and excludes the cost of the actual commodity (in this case, water).  This kind of "flat" billing is fairly controversial in utility circles.   Energy utilities, such as SDG&E, have been forced by regulators to charge volumetrically, rather than using flat fees.  That means that the utility must incorporate its operational costs into its rates rather than separating it out into a separate baseline fee.

After the baseline fee comes the volumetric fee, or, the water use and sewer use fees.  These are tacked on top of these baseline fees. These rates vary on the amount of water you use and your type of residence.   They too are controversial as they are not tiered so that customers who use a LOT of water in a wasteful manner pay the same rate per hcf as a very frugal customer who conserves water.   UCAN will be examining both the City's use of a flat baseline fee as well as the very regressive volumetric fees for water.

How can you turn bad news into a positive? Be a vigilant water consumer! Go out and read your meter every month to make sure that the City is charging you the proper amount above the baseline fees. The Water Department's website has a wealth of information that you can use to your advantage. Here's a simple guide to reading your water meter: http://www.sandiego.gov/water/rates/how.shtml. Additionally, here's a calculator to help give you an estimated bill amount: http://www.sandiego.gov/cgi-bin/water/rates/calculator.pl. Use these tools to keep the City in check and make sure you are paying only for the water you use. An informed customer is a powerful consumer.

You live in another dimension, a dimension not only of sight and sound but also really wet......well, if you are near a faucet or toilet.  So join us on a disburbing journey into a world of water and sewer service in the City of San Diego whose bureaucratic machinations and obstructions transcend the imagination. There's a signpost up ahead - your next stop, the San Diego Water Zone!

San Diego's Metro Wastewater and Water departments might not be quite the Twilight Zone; for San Diego residents who have had to deal with these departments, the experiences are more horrific than anything suffered by a Rod Serling character. The boundaries of San Diegans' mistreatment are apparently limited only by the imagination of these bureaucracies. 

Do any of the following stories seem familiar? If so, there's something you can do about it. So take a walk (or swim, rather) with us through the San Diego Water Zone. Be sure to hold your breath!

Note: while the names have been changed to protect the victims, their stories are horrifyingly real. 

Meter Problems 

We begin at the intersection of Meter Street and Problem Way. While in most places these roads run parallel, in San Diego these roads cross more than a rookie at bat in the bottom of the ninth in the World Series. Customers struggle valiantly to get professional and respectful help from the City's customer service representatives (CSRs). 

Missing Meter

Meet Marty Mason. A hard-working man, he didn't excel at anything particular, but he knew when dirt was being tossed in his eyes. Mr. Mason knew he had a water meter. The precious liquid came out of the kitchen tap, dripped in his bathtub if the handle wasn't turned tight, and watered his prize azaleas. What Mr. Mason didn't realize that he was caught... in the Water Zone.

The Water Department told Mr. Mason that his water meter was missing. How could that be? Should it not be obvious to the City that the he has a water meter? Instead of calling Sherlock Holmes (literary fans will recall Holmes' trouble in The Meters of Baskerville), this industrious customer dug around and found his meter somewhat covered in soil. When relaying his discovery to a City CSR, the customer was met with indifference and disbelief. Only in the Water Zone.

Dirty Meter

The water meter reader plugged along on his daily route. One, five, seven, nine. Two, four, eight, ten. No, the meter reader didn't have an aversion to threes, but those were the numbers of houses whose meters he read. Not every meter, but some of them.

Darla Martinez knew how to count; she was house number number nine. Ms. Martinez knew her meter wasn't being read, as her skyrocketing monthly water bills would be scary anywhere. But this was the Water Zone. Of course every meter was read, the CSR insisted when Darla called. The CSR rudely refuted the customer's assertion and demanded proof of the Water Department's undersight. The proof: there was such a thick buildup of grime and gunk on the meter window that she had to furiously scrub at it to read the meter herself.  The meter reader couldn't have possible read the meter without X-ray glasses.

Slab Leak Policies 

Sam Leahy opened his water bill and saw his bimonthly use: 550 HCF. Trouble was, his previous peak was 10 HCF. The culprit: a barely noticeable slab leak. This bill unleashed a deluge of events that forced him to pay high water and sewer rates for the better part of a year, despite City customer service rules that dictated otherwise. And after another year of fighting with the City, he found himself at wits end, and still dogged by inflated bills

The City violated its own internal rules in their resolution of this matter and our member didn't receive full compensation for the extra charges he received because of the slab leak. In addition, like many of the Water Department's rules, the CSRs apply customer service rules that aren't made public. Typically, the CSRs provide the customers obscure municipal codes in response to the customers' requests. The CSRs do not provide an explanation of customers charges in plain English.  The City's water and sewer rules are not posted on the City's web site.

Moreover, a slab leak during the winter months provides a one-two combo on your pocketbook. The City calculates your sewer fee based on your water usage during the winter months. [http://www.sandiego.gov/water/rates/winter.shtml] Even if you're dazed by the City's quick left jab of excessive water use, keep your guard up because a sneaky right hook is looking to end this unfair fight. The City's right hook lingers and doesn't rear its ugly head until July of the next year, when you are charged your next year's sewer rate. You are charged this higher sewer rate for an entire year, backed in a corner, caught in the ropes, feeling the repeated sting month after month with no available defense. 

Backbilling  

What you're looking at now is a ghost of a woman. Once alive, Mrs. Betty Brown is just a shell of her former self, housing broken memories and the smoldering remains of a fire that once burned brightly. The cause of death? Sickness? Too easy. Accident? Too painless. No, there is one soul-sucking force at the center of the Water Zone: backbilling. Here, the City was to blame, committing the simple but unforgivable mistake of undercharging Mrs. Brown for over a decade. That seemingly simple mistake, through no fault of Mrs. Brown, created an almost $20,000 back bill and robbed her cheery disposition. 

Backbilling occurs when the Water Department erroneously underbills a customer in the past. The Water Department's backbilling policy: "One hundred percent of the water used will be billed, no matter how far back the water usage occurred." [http://www.sandiego.gov/water/rates/procedures.shtml] For some customers, even though it was the Water Department's billing error, the policy reached back almost 20 years! 

One of the many problems with backbilling are the unfairly and unevenly applied rules that pertain to backilling. Certain water customers received favorable payment periods for backbilling, compared to others who had unreasonable repayment terms imposed upon them. Some customers didn't see a resolution of their problem until they contacted their city council representative. Thankfully, UCAN's decisive-thinking and quick-acting team broke through the Water Zone and helped significantly lower Mrs. Brown's bill to a reasonable level.

Billing Information and Errors 

This is twenty-first century San Diego. While it lacks the high-tech flying cars and hover crafts touted in 1950s sci-fi movies, Bill Ensign expected that the City's utilities had at least mastered the use of a calculator. He had the audacity to use his own to calculate his average water use--why didn't the City? 

Bill is one of many customers who have problems with the Water Department's estimated billing system. For some, certain months were billed at an estimated usage much lower than their typical use. However, their bills were extremely high in following months. The customers' payments drastically fluctuated up and down over the months, making it impossible to create a budget that is necessary in this horrible economy. UCAN once again donned its SCUBA suit to rescue another victimized customer and worked with the City to fix its estimated billing formula.

Additionally, customers have difficulty getting information about billing errors and correcting their billing errors. In another case, although the Water Department acknowledged the billing errors in another customer's bill, it took over two months to remedy backcharges for failure to read his meter.

Rude Customer Service

Prop 218  

Mr. and Mrs. Peter Tillow, quiet and kind retired folk on a fixed income, whose lives hung in a perfect financial balance. They had enough money to send funny monkey cards for their grandchildren's birthdays and to eat languid dinners at the Chicken Pie Shop. When Mr. Tillow casually tossed what seemed to be an innocent piece of junk mail, their once perfect balance skewed drastically out of proportion.  Little did they know that in tossing the junk mail,  they had given away their right to vote in a referendum on a proposed water rate hike.   Mr. and Mrs. Peter Tillow, once perched on the outskirts, just entered the San Diego Water Zone.  

It turns out that thte Water Department did not provide adequate notice of public hearing to protest the Water Department's rate hike. The notice informing consumers of their right to protest  came in a third class mailing that looked like bulk mail and was easily lost amongst daily mail advertisements. Many people tossed the notice along with the pile of credit card applications and millions of dollars of sweepstakes winnings they receive every day, denying them the opportunity to keep their precious finances in balance.

New Account Charge 

Nancy Anderson sat shiva for her dear mother. Once the seven days were up, Ms. Anderson set about the arduous task of winding up her mother's affairs. Choking back her tears, she packed the piles of paper in her mother's antique armoire and escaped to the sanctuary of her own home. A San Francisco resident, Ms. Anderson hit no bump or obstacle during her task, until she entered the San Diego Water Zone.  Her mistake -- an attempt to change the name on her deceased mother's water bill.

Customers are understandably upset because every time the name on the account changes, the Water Department imposes a new account charge. Specifically, Nancy's sewer rates went up when she changed account to her name from deceased mother's after she moved into her mother's house. This storyline sounds like it was stolen from Poe, but I assure you there are no beating hearts thumping below the slab (although, that could explain some of the slab leaks). When a parent dies, a death certificate is required to waive the new customer fee. Customers are not told about this requirement when they call a CSR. 

Additionally, another customer owns a rental property and every time the tenant moves out, she transfers the water bill to her name so the water isn't shut off. Each time she transfers the water bill, she is charged a new account charge fee, even though she has owned the building for 40 years.

Escape from the Twilight Zone?

You've now braved and escaped the Water Zone, a rare victory not shared by the San Diegans trapped within the depths of the watery world. What you've seen could be the continuation of an endless nightmare. But with your help, San Diegans can wake up from this never-ending nightmare and escape the San Diego Water Zone. UCAN needs your stories and experiences to help expose all of the Water Department's surly practices. Send us your complaints with the City of San Diego Water Department. Let us know how you survived the Water Zone and lived to tell the tale.  And we'll make sure that your story doesn't happen to other consumers -- plus we may be able to fix your problem with the City.