Increased Utility Theft

From today's Commercial Appeal...Customers can report utility theft by calling 321-6969 or by e-mailing revenueprotection@mlgw.org.

Hard economic times cited for increased utility thievery in Memphis area

Times are still hard, and households in the Memphis area are increasingly resorting to stealing electricity and other utilities, officials with Memphis Light, Gas and Water Division said Thursday.

MLGW investigated nearly 20,000 reports of utility theft in 2010, a 17 percent increase from 2009 and a 23 percent rise from 2008.

The percentage of reports that workers verify as theft is also increasing -- in 2010, they found 52 percent of reports were accurate, compared with 45 percent in 2008.

Estimates of the cost of theft vary, but if theft represented just one-half of 1 percent of MLGW's electric sales, it would cost $4 million per year, said Eliza King, the utility's manager of customer metering.

The increase in reported theft probably has to do with the slow economy, King said. But she also said stealing is a choice, since the utility provides many assistance programs for people who don't have the money to pay bills.

"I'm really not understanding the choices that people are making," she said.

Some cases involve criminal activity, such as indoor marijuana farms, she said.

The number of MLGW workers who investigate theft reports recently rose from 10 to 12, and is about to rise again to 14.

King showed MLGW board members several photos of crude methods used to steal electricity -- some involved jumper cables, one image showed a layer of duct tape covering an altered meter and another showed a wire running into a window.

"They'll do anything that they can do, as long as it's conducting electricity," she said.

This do-it-yourself electrical work represents a fire hazard that threatens not only the thief's property but also that of other people living nearby, she said. Thefts of water and gas also occur, though they're less common, she said.

MLGW charges large fees when it finds people guilty of theft -- $800 is not uncommon, said president and CEO Jerry Collins Jr. If the customers want the utilities restored, they must also put down a deposit of $125 and pay any balance due.

"If a person does commit a crime, then there's a price to be paid," Collins said.

But he said MLGW doesn't call the police on the first theft offense.

"So this is a lot better than being prosecuted," he said. "And with the fact that theft is increasing, then obviously we're probably not being tough enough."

Collins said some City Council members suggested at a recent meeting that MLGW should show more compassion toward women and children caught up in utility-theft cases.

Councilman Harold Collins said the discussion had to do with one specific case, and that he personally believes authorities should punish utility thieves.

"When people steal from the utility, they steal from the city of Memphis, and they have to be accountable for that," said Collins, who is not related to Jerry Collins.

The board wrapped up discussion without a vote.

Also Thursday, the board voted to allow RREEF, a real estate investment business that's part of Deutsche Bank, to manage about $45 million of employee pension assets. It's part of a larger restructuring of pension investments.

To see behind the scenes, check out the ride along I did with one of our Revenue Protection officers a few years ago.