Thousands of MSD customers have been under and over billed

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ST. LOUIS (KTVI) - Thousands of Metropolitan Sewer District customers may be feeling sticker shock. MSD sent letters to nearly 15,000 residential and commercial customers who were under and over billed for a year and a half.

The incorrect billing happened between May of 2013 and October of 2014 due to an error in a new system implemented by Missouri American Water.

For the 5,500 under billed customers living in a multi-unit setting, the average amount owed to MSD is $450; for commercial customers, it's $2,500. Residents living in single family homes were not impacted by the error.

Some commercial customers owe significantly more.

"We do have some customers that owe several hundred thousand dollars," said Lance LeComb, spokesman for MSD. "Think Boeing, Washington University, some of the hospitals in the area. Those are our bigger customers, we have relationships with them. We're certainly going to work with them to make sure everything goes smoothly."

More than 9,000 customers were overcharged as a result of the miscalculations. Those customers will see an average credit of $189.

"We have some customers like the City of Webster Groves, Lutheran Family Services that we owe tens of thousands of dollars to," said LeComb. Records show the City of Webster Groves has been billed for more than $86,000 in overcharges.

LeComb said debits and credits began appearing on customer bills beginning March 3. The sewer district says it will set up payment plans for customers who can’t pay in full.

The correction will result in nearly $7.9 million in additional revenue for MSD.