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The Department of Public Utility Control held a hearing on the issue at its headquarters in New Britain.
CNG said false readings by three meter readers who have since been fired led to about 2,600 customers being undercharged in November and December. The company then billed those customers hundreds of dollars in either January or February to make up for the error.
CNG said it wants customers who haven't yet paid in full to make up the difference, but will give them nine months to do it.
"It is important to note no customers were ever over-billed for more than their actual usage," said Robert Allessio, president and CEO of CNG.
But state regulators said the company should have disclosed the problem earlier. CNG officials said they knew about the problem as early as Jan. 7 but didn't tell the DPUC until Jan. 31.
"This has disrupted an awful lot of peoples' lives," DPUC Commissioner James Fleming said.
Attorney General Richard Blumenthal said CNG should be forced to absorb the expense -- estimated at $750,000 -- because it violated state law by trying to force customers to make up the difference for the incorrect readings all in one month.
DPUC commissioners said they planned to make a preliminary decision within a day about if and how CNG will be allowed to collect the money.
Both sides agreed the utility should apologize to customers. Some were told cold weather caused the unusually high January and February bills.
CNG, a subsidiary of Energy East, serves 155,000 customers, mainly in Hartford and its suburbs.
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