As far as I'm concerned without an actual reading done in 9 years, I would argue that more than a few of those years were billed fraudulently. To make an estimated billing is fine, provided the estimate has some reasonable basis for being accurate. After a couple years of continued estimation with no solid reading, it seems like the estimate is no longer tied to anything real, and has no basis for being accurate.
I don't feel that just put a short sentence on some part of the bill (and without a copy of the actual notice I'm dubious about how visible it was) is sufficient notice. After some time of the customer not responding, I feel the utility company had a responsibility to escalate the communications, direct letters, a visit from a service person, and if no resolution was found, stopping service. Billing someone for amounts with no relation to actual services rendered is not appropriate.
Further, it's not clear how the $4,000 figure was arrived at. The articles states:
I'm an engineer, and I have a hard time understanding how this new meter can measure water flow that occurred 9 years previously. Maybe someone here has insight into how they can get such a measurement.
I'm thinking they either took a final reading on the old meter; which is probably not terribly accurate over a 9 year period for a meter that was outdated to begin with, and may not even be possible since most such meters have a rollover point. Or more worrisome they measured usage with the new meter for a short time and then back estimated the usage over 9 years, which would be just shady.