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Memphis, Tennessee utility suspends bill payments at kiosks due to billing glitch

July 11, 2017

The Memphis Light, Gas & Water Division in Memphis, Tennessee suspended payments at 187 self-service kiosks Monday after a rumor and a glitch sent thousands of people scrambling Saturday to pay what they incorrectly thought were sharply discounted electric bills, according to The Commercial Appeal.

MLGW President Jerry Collins said the kiosks have been shut down and won't be activated until the problem is fixed. He said no customers' utilities will be turned off in the meantime for non-payment.

The glitch affected more than 20,000 customers, according to localmemphis.com. The numbers were off by a factor of 100 on the receipt when it came to the balance after payment, said Collins. Canada-based TIO Networks Corp., the company's kiosk provider, ruled out hacking as the cause of the glitch in TIO's system, Collins said. 

Word of the glitch and a rumor that Zach "Z-Bo" Randolph, a basketball star, had paid $1 million worth of utility bills circulated Saturday morning, creating long lines at kiosks before the machines were unplugged by noon.

MLGW is working with TIO to credit the $2 convenience fees charged when customers made their payments, mostly of which were in the $5 to $10 range, according to Collins.

While the Randolph rumor was false, he has donated $20,000 a year to pay off peoples' utility bills.