Electric Meter-Tampering Thief Convicted in Federal Court.

PECO Urges Customers to Be Leery of Energy-Saving Scams That Can Create a Safety Threat

PHILADELPHIA -- An "energy consultant" who offered to help lower PECO customers' bills by between 25 - 50 percent was recently convicted in federal court, sentenced to three years in jail and fined $50,000.

"Meter tampering is illegal and extremely dangerous," said John Kratzinger, Revenue Protection supervisor for PECO. "Tampering with an electric or gas meter is stealing, nothing more or less. And, it puts the homeowner, their neighbors, PECO technicians and even police and firefighters in danger by creating a hazardous condition."

PECO actively investigates instances of unusual meter readings with an 11-member revenue protection team. In this case, PECO became aware of the tampering after getting leads from other customers stating that someone was tampering with a meter in 1999. After further investigations, PECO and police zeroed in on George Wagner, of Philadelphia, who allegedly installed "energy-saving devices" on meters of customers throughout the entire five-county PECO service territory and in New Jersey and Delaware.

In actuality, Wagner was "fixing" the meters to slow the wheels used to calculate electric usage. Wagner was eventually charged with 30 counts of mail fraud in federal court. PECO was able to recover $1.5 million in revenue from customers whose meters were tampered. In 2005, PECO was able to back-bill for more than $4.7 million as a result of similar investigations and avoided losses of $11 million (money that would have been lost if the tampering was not discovered).

"Tampering with electric or gas meters is extremely dangerous and could lead to someone getting electrocuted or starting a fire," Kratzinger said. "If customers are approached with offers to save huge amounts of money on their electric bill, they should remember, 'If it sounds too good to be true, it probably is.' Tampering with meters is a crime that carries real penalties, including jail time."

Since the Wagner case came to light in 1999, PECO has automated its 2.1 million electric and natural gas meters, which has advanced the company's efforts to identify and thwart meter tampering and attempted theft of service. If customers suspect someone is tampering with an electric or gas meter, they may leave an anonymous message at [phone].

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE: EXC). PECO serves 1.6 million electric and 470,000 natural gas customers in southeastern Pennsylvania. In 2004, the company delivered 37.5 million megawatt-hours (Mwh) of electricity and 87.1 billion cubic feet of natural gas to residential, business and institutional customers. PECO's energy delivery services generated $4.49 billion in revenue for Exelon.