Measuring the cost of late-paying customers

Journal Article · Thu Jan 18 04:00:00 EST 1990 · Public Utilities Fortnightly; (United States)

OSTI ID:5245378

Schmieder, T K ^[1]

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1. New York State Dept. of Public Service, Albany (USA)

With interest rates substantially below the highs reached in recent years, concern has been expressed that the late payment charge (LPC) being assessed by some utilities is too high. This article reveals the results of a study done to determine the appropriate level of the LPC for combination gas and electric utilities in the state of New York. The various costs that result from late payments are discussed and reconciled to the charges being assessed late payers by the utilities. The author concludes that late-paying customers are being subsidized by the general body of ratepayers, and suggests ways to improve the efficiency of the collections function and reduce rates for all customers who pay on time.

• OSTI ID: 5245378
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 125:2; ISSN 0033-3808; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200600* -- Fossil-Fueled Power Plants-- Economic
Industrial
& Business Aspects-- (1990-)
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000 -- Energy Planning & Policy-- Electric Power
CAPITALIZED COST
CHARGES
COST
DEBT COLLECTION
ECONOMICS
ELECTRIC UTILITIES
FINANCIAL INCENTIVES
OPERATING COST
PUBLIC UTILITIES
SUBSIDIES