Odessa’s response to a years-old electric-billing error includes customer credits and a state performance audit. The city amended its Energy Cost Adjustment calculation and approved refunds or credits for affected customers. Separately, Missouri State Auditor Scott Fitzpatrick launched an audit after residents petitioned for a state review; he met with Odessa officials on Monday to begin the process. The error came to light in March 2026.
The miscalculation involved Odessa's Energy Cost Adjustment, a surcharge the city added to electric bills in 2019. According to the City of Odessa, the ordinance establishing the ECA did not fully specify all the factors used in the calculation formula, which created a discrepancy in part of the charge. Odessa's finance director has said the estimated miscalculation totals $1.3 million, though the city has also described roughly $900,000 of about $27 million in five years of electric-utility revenue as tied to the ECA error, as reported by FOX4KC.com — a discrepancy in the figures that has not been reconciled publicly.
More than 400 Odessa residents signed a petition demanding a formal state audit, with the city's report putting the count at 434 signatures requesting Fitzpatrick's involvement. The station's earlier report quoted organizer Jon Lee saying the group collected 439 signatures in a single day, which he said represented 112 percent of their goal — a discrepancy in the tally that the available reporting does not explain.
Why Residents Pushed for a State Review
Residents sought a state review after learning their power bills had been miscalculated for years, citing concerns about transparency and accountability. FOX4KC.com reported that Fitzpatrick said residents’ trust in city officials had waned and that the audit would assess city operations. It is the Missouri State Auditor’s Office’s first audit of Odessa.
Fitzpatrick said the detailed review would unfold over the coming months, with the goal of improving the city's efficiency, effectiveness and accountability. The audit will specifically examine the electrical billing mistake traced back to March 2026, when the scale of the ECA miscalculation first became public.
How the City Responded Before the Audit
Odessa had already begun trying to fix the problem on its own before residents turned to the state. The city amended its code and began using a revised ECA calculation in February 2026, and the Board of Aldermen later approved Bill No. 2026-07 to temporarily simplify the formula using purchased-power costs from the current and previous two billing periods, per the same account from FOX4KC.com.
The Board of Aldermen also approved a bill providing refunds or credits to residents affected by the error, KMMO reported. Refund amounts will depend on each customer's utility bill and how long they lived in the city, with active customers receiving credits on their accounts and former residents eligible for a check instead.
Under the city's ECA Credit Opt-In Program, customers with an active electric-utility account will receive a credit automatically, covering charges for electric service received between May 2019 and January 2026. Former or inactive customers who believe they qualify for a refund must apply by March 31, 2027, and the opt-in period itself stays open until that same date.
Refund Eligibility and Utility-Audit Context
The affected billing period for credits runs from May 2019 through January 2026. The city says the ECA ordinance did not fully specify the calculation factors. For an inactive account, a successor, spouse, personal representative, heir or other person with a demonstrated legal interest may apply if the account holder is deceased or incapacitated, subject to documentation requested by the city, according to the City of Odessa.
A separate audit offers context, but not findings about Odessa: in June 2026, the Missouri State Auditor’s Office found in its audit of Elsberry that some utility rates billed did not match city code and that the code did not fully document the rates.
What Comes Next for City Operations
Beyond the refunds, Odessa has said it plans to establish an Internal Controls Audit Team, a step the city described while addressing residents' concerns, per FOX4KC.com's reporting. Some residents have pushed for the review to go further, with one telling the outlet that a full audit should be performed from 2019 onward and that residents deserve to be made whole.
The Board of Aldermen has also discussed whether to adopt a three- or four-year plan addressing future base and ECA rates, moving beyond the temporary formula approved earlier this year. For now, the scope of Fitzpatrick's performance audit, its timeline for completion, and its eventual findings remain pending as the review gets underway.
