Collection Policy

OBJECTIVES:

To establish procedures for the collection of delinquent payments for:

  • District Read and Billed Customers with Credit
  • Other Account Receivables
  • Return Checks and returned electronic payments
  • Pre-Pay collection efforts

CONTENT:

CREDIT ACCOUNTS

  1. The Office Manager shall designate a Collections Manager who will be responsible for coordinating the activities outlined in this bulletin.
  2. All due dates and penalty dates will be printed on the bill. A $10.00 fee is applied to all past due accounts.
Late Payment Fee $10.00
  1. The only required notice of disconnection for non-payment (of credit accounts) will be a letter sent by first class mail to each late account.  This notice is combined with the late payment notice which states both the late payment fee and the disconnect date.   Failure to receive a bill or any notice by mail, email, text or other means does not relieve the customer from the obligation to make timely payment.
  2. Though not required, the District will provide additional pre-recorded telephone reminders at no additional cost. Customers also have the ability to use the District’s web page payment portal to set their own alerts and reminders at no cost to them.
  3. The District will also make a final personal call to the customer to avoid dispatching the crew for disconnection of service. There is a $5.00 charge for this service.
Personal Collection Call Fee $5.00
  1. Disconnection for non-payment will usually be performed Monday through Fridays except for the Districts Holidays.
  2. Collection fees to cover the expenses of trips/other items required by customers will be as follows:
Disconnection or Reconnection Trip Fee
During business hours (7:30 am – 3:00 pm) $60.00
After business hours (7:30 am – 3:00 pm) $110.00
  1. Once electric service has been disconnected because of non-payment, then all past due amounts plus payment for current charges up to the date of disconnection must be collected and in addition to collection fees listed above, any additional security deposit amounts as required by Policy 11-07 and any other applicable amount owed.
  2. When an account is scheduled for disconnection for non-payment, then the collection fee of $60.00 (during business hours) shall apply when the account is paid on site or prior to serviceman arrival on-site, even though service is not disconnected.
Scheduled Collection Fee
During business hours (7:30 am – 3:00 pm) $60.00
  1. In addition to the service fees and the past due balance, the standard security deposit as governed by Policy 11-07 will be required if the customer does not have a security deposit with the District.
  2. Temporary and voluntary disconnection of service will be subject to both the $60.00 disconnect and reconnect fees during business hours (named above) and $110.00 fees for after-hours work.  In addition, payment of the monthly standby service charges will be collected if in arrears.
Disconnection or Reconnection Trip Fee
During business hours (7:30 am – 3:00 pm) $60.00
After business hours (7:30 am – 3:00 pm) $110.00
Plus payment of monthly standby service charges if in arrears
  1. Customers have the option to avoid these Service fees by working with new owners, tenants and landlords to avoid trips for disconnection and reconnection of service by arranging a transfer of the account without a disconnection of service.
  2. Payment arrangements may be verbal or written per Policy 11-11 Pay Arrangements and Extensions of Payment Dates provided the customer follows all instructions and requirements of the District and is accurate in their communications with District personnel.  Payment arrangements are not permitted to restore service after disconnection for non-payment.  Customers who have been disconnected for non-payment once in the last 12 months are not eligible for a payment arrangement.
  3. When a check, E-check and credit card charge back is returned for insufficient funds or other reasons and the account is not delinquent, then the Collections Manager will send a letter to the customer stating that they have five business days to make payment by means acceptable to the District.  A service charge of $30.00 will be collected for each rejected payment.  When a check is returned because of insufficient funds and the check was offered as payment on a delinquent account to avoid disconnection of service, then the account is subject to disconnection immediately.  Only cash, credit card, or money order may be accepted as payment to avoid disconnection without further notice.  All penalties, fees and deposits are due.  The Collections Manager will record all instances of returned checks in the customer’s account record.  If the customer has two returned checks, E-checks within 12 months for insufficient funds, then the District will no longer accept a personal check or E-check as payment on accounts and the customer’s credit standing changes per Policy 11-06.
Returned Payment Fee
For each rejected payment $30.00
  1. Accounts for other services or sales other than electricity that are aged over 45 days will receive a letter stating the account will be transferred to the customer’s active electric account and could become subject to disconnection for non-payment.   If the customer does not have an active electric account, then a letter will be sent stating the account will be turned over to a collection agency within 5 business days unless paid in full.
  2. The District reserves the right to pursue collections for any account through the use of disconnection of service, collection agencies or court action or any other means available to the District.

PRE-PAY ACCOUNTS

  1. Pre-Pay (when metering supports implementation) is the District’s default method of payment and customers that cannot meet credit criteria will be required to continue service using pre-payments for energy and service.
  2. Management will monitor and evaluate various parameters of the program from time to time, but a text and/or email notice of disconnection is the only notice to be sent when the customer’s account balance reaches zero.
  3. The only notification provided of account balance will be the daily text/email. Should staff make a phone call ‘reminder’ to assist the customer in avoiding disconnection of service, a $5.00 charge will apply.
  4. When a credit balance is no longer maintained, service will be disconnected automatically where a service disconnect meter is in place. No disconnection or reconnection fee will apply.
  5. In the event a service disconnect meter cannot be installed on the service, a collection trip will be scheduled the next business day, and the same disconnect and reconnect fees will apply as for credit billed accounts.
  6. Disconnection for not maintaining a credit balance will usually be performed each day of the week including weekends and holidays.
  7. The Staff is authorized to use judgment in permitting a payment arrangement in order to assist the customer in converting to Pre-Pay.