EPCOR water has had its hands full with controversy in recent months, and not just related to its Fountain Hills rate hearing.

About a week ago a media report indicated that a City of Phoenix audit indicated EPCOR had overcharged the city for a “water wheeling” agreement between the city and company.

The agreement basically allows the city to use part of the EPCOR infrastructure to move water in the Anthem area from the city system on the east side of I-17 to its customers on the west side of the interstate. The news story indicated the city had been overcharged by $2.7 million.

EPCOR spokeswoman Rebecca Stenholm told The Times the water moving through the system is metered and subject to rates approved by the Arizona Corporation Commission.

Stenholm said EPCOR has reviewed all of its invoices to the city of Phoenix, comparing them to the rates in effect at the time of the invoice.

“No errors in billing were found and the correct rates for service have been charged – EPCOR has not overcharged the City of Phoenix,” Stenholm said.

The amount of water delivered to Phoenix is verified when it arrives at the EPCOR treatment plant and again when it passes through the Phoenix meter, and this information is exchanged on a daily basis, according to Stenholm.

Under the terms of the contract the City of Phoenix is responsible for up to 10 percent of water loss during the process of delivering water.

Stenholm said the audit did find that the city was incorrectly charged for 10 percent water loss, when the actual amount was 7.73 percent. That was the result of an incorrect calculation in the billing system.

“The billing system was immediately corrected and the city has received a refund check of $5,387.36,” Stenholm said.

There was also an issue with the transaction privilege tax (sales tax).

Stenholm said the city’s audit incorrectly suggested EPCOR had incorrectly billed the city for sales tax.

“EPCOR does not charge the City of Phoenix for this tax,” she said.