Scouting out power where it's not paid for: Extra electricity - Busted

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Kirk Hatch is on the lookout for thieves -- ones who steal electricity.

As an inspector for Progress Energy, Hatch catches poachers siphoning power. The robbers are usually customers disconnected for not paying bills who try to get the juice flowing again by using makeshift wiring.

Tracking them is a full-time job for Hatch and five other revenue protection inspectors in the Carolinas. They confirmed more than 1,000 thefts last year.

Hatch can log 3,000 miles a month on his unmarked Chevy Tahoe in pursuit of his quarry. In addition to Raleigh, Hatch's territory includes Zebulon, Oxford, Roxboro and Henderson.

This summer has been as busy as any, and possibly worse, Hatch surmises. The total number of Progress Energy customers is increasing. Unemployment has taken a toll on the rural areas that are Hatch's responsibility, straining budgets and forcing people to make tough choices.

Last year, Progress Energy recovered about $1 million, mostly for lost revenue but also for damaged equipment.

On a recent morning, Hatch's work takes him through rolling farmland to Yanceyville. At the end of an unpaved road, he pulls up to a double-wide mobile home, climbs out and inspects the utility meter in the back. It's clearly been tampered with, as evidenced by the broken lock and forcibly removed latch.

He pulls out the meter and takes a reading showing 200 kilowatts of power consumed, at least a week of usage. Then Hatch calls the utility technician to come and cut off the power -- again. This is a repeat offender.

This time Hatch installs a padlock on the meter box. To get the power back on properly, the occupant will have to repair the damaged meter box and pass code compliance, easily costing several hundred dollars.

"Some of them are just down on their luck," Hatch says of the diverters. "But almost every area has one or two customers who are going to steal as a way to beat us."

Last year, Progress Energy disconnected more than 112,000 customers for nonpayment. Under the company's policy, a customer gets notice of a disconnect date when a bill is 60 days overdue. The utility will sometimes give customers up to 60 days longer to pay their bills, or refer the customer to a social service agency for financial aid.

Progress Energy doesn't cut off power during heat waves or cold snaps. But it can get awfully hot after only a few days without power.

Protecting a legitimate corporate interest can pose an ethical dilemma when the product you sell is as essential as electricity.

"In the summertime when it's hot and you need air conditioning, it could become a life-and-death issue," said Alfred Ripley, consumer action network director with the N.C. Justice Center in Raleigh. "We would never say it's excusable for people to steal electricity any more than we'd say it's excusable for hungry people to steal food."

Hatch follows up tips from a variety of sources -- mostly police officers, service technicians and suspicious neighbors. Estranged spouses have proven to be reliable tipsters, as have businesspeople who have had a falling out with their business partners. Under state law, Hatch and other Progress Energy technicians can enter private property to inspect the meters.

He'll soon have another resource: automated technology.

Progress Energy is replacing its old analog meters with digital meters that can be read by radio frequency from down the street. The new automated meters will make it easier to detect utility theft and meter tampering because they are programmed to flag irregular readings.

In his six years as an inspector, Hatch has collected a lifetime of tales. He's seen utility poles jury-rigged to siphon power, an extremely dangerous ploy.

"We've seen some cases where they didn't know what they were doing," Hatch said. "I was surprised I didn't see a body laying there on the ground, it was so badly burnt up on the inside" of the transformer.

Others are experts in the trade. Just this week, Hatch was dealing with a fellow in Rocky Mount who diverted power from his home and sent the electricity through the meter at his auto body shop. The customer was still paying for the residential electricity, but at the slightly lower commercial rate. What struck Hatch is that this customer admitted that he used to be a utility meter theft inspector himself, only for another utility.

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