Utility audits save cash-strapped LEAs big money
Published: June 1, 2011
If you were to open your telephone or electric bill and find you’d been charged hundreds of dollars—or more—for a service you don’t even use, you’d likely waste no time asking for a refund.
California school districts and county offices of education frequently incur similar overcharges on their utility bills. Yet few recover refunds, which is a shame considering the critical condition of local educational agencies’ budgets.
That’s why CSBA has joined forces with Northwest Capital Recovery Group, which can analyze utility bills for overcharges and, at no risk or out-of-pocket costs, recover significant savings for cash-strapped local educational agencies.
The specialists at NWCRG will analyze an LEA’s telecommunications, electricity, natural gas, garbage and water or sewer bills for savings. Once a refund or credit appears on a client’s bill, NWCRG receives a percentage. If they don’t find any savings, the LEA owes them nothing.
“We’re selling them found money—like an endowment, with no strings attached,” NWCRG President Steve Rhea said.
There’s really no risk for clients, he added, because there are no up-front consulting or servicing fees, and there are no activities to consume significant staff time. NWCRG needs only three months of utility bills, the applicable contracts and a signed agreement with the governing board to get started.
“We’re in the business of making sure that what LEAs are paying for and what they think they’re paying for and what they’re actually getting are the same,” said Rhea.
Some 100 California LEAs now use NWCRG to review their bills for savings, and the company has already found almost $10 million in refunds and first-year savings. Because his specialists know exactly what to look for and the type of district they can help, Rhea is able to make an amazing statement: “We have a 100 percent success rate with every district we’ve worked with in California.”
The average LEA realizes savings and refunds of over $100,000; those with more than four or five sites are especially good candidates for the service. Nevertheless, no LEA should assume it’s too small; Rhea says they’ll work with any client that wants help.
So there’s nothing to lose and a lot to gain, as Rhea says: “There isn’t a parent or a school board member or superintendent who wouldn’t want to make sure the [LEA] is being billed appropriately.”
Easy links:
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Telecom and Utility Cost Recovery Program