Net & Gross Billing

Net & Gross Billing 2017-08-14T16:28:29+00:00

It is the policy of the Owatonna Public Utilities (OPU) to offer their customers a net rate and a gross rate.  The purpose of making a net and gross rate available to our customers is to encourage the prompt payment of all utility bills so that the majority of the customers can enjoy a lower utility cost since the Utilities is able to recover their costs sooner.

  • Bills for utility services will be rendered monthly.
  • The term “monthly” for billing purposes will mean the period between any two consecutive readings of the meter.  Such readings are to be taken as nearly as possible every 30 days.
  • Failure to receive a bill does not exempt the customer from the provisions of these terms and conditions.
  • When OPU is unable to read a meter after reasonable effort, the customer will be rendered an estimated bill.  The subsequent billing will adjust any estimate previously billed.
  • The customer shall receive a bill which shows the net amount due for each commodity for each billing period and a gross amount for the total statement.
  • Payments are due within 15 days after the billing date for customers with annual electric usage greater than 480,000 KWH.  Payments for all other customers are due within 21 days after the billing date.  A review will be made annually, in May, to determine which account due dates should be reclassified.  A variance of 10% is allowed in making reclassifications. 
  • When bills are paid on or before the due date, only the net amount due will be collected.  If the bill is paid more than two days after the due date, the gross amount due will be collected. 
  • When the due date falls on a Saturday, Sunday, or a holiday,  payments will be accepted on the next regular working day on a net billing basis. 
  • In order for a monthly billing payment to be considered on time, it must be received in the OPU business office on or before the due date.  Postmarks will not be considered as proof of timely payment.
  • The gross billing shall be the net billing plus 5% on the first $100 and 2% on the amount in excess of $100 per utility.
  • Sales Tax and Energy Conservation Investment are exempt from the gross billing adder.