Energy Company Goof Costs City $212K

Schools Under-Billed Due to Decimal Point Error

– Allison Goldsberry

Years of under-billing by Direct Energy for the Medford Public Schools is now costing the city $212,000.

According to Mayor Michael McGlynn, the company admitted to making the mistake, but Medford still has to pay back the cash.

Mayor McGlynn said the company recently discovered the city was under-billed for its energy use due to a decimal point error on behalf of the company.

“They [Direct Energy] admit it. It was their mistake,” said Mayor McGlynn.

The company initially sought interest and legal fees on top of the $287,000 owed. Mayor McGlynn said the city negotiated with the company and has to pay $212,000.

According to Mayor McGlynn, the billing error dates back to the 2006 fiscal year and was not noticed at the time by anyone in the administration.