2019 Utility Fee Survey Results – Part III

Over the course of the past few months, I’ve been conducting the 2019 Utility Fee Survey. This is an update to the original Utility Fee Survey in 2012 and subsequent fee surveys in 2015 and 2017. The survey was designed to research what fees utilities charge, how much they charge for each fee, and to see what trends, if any, are occurring with fees.

This is the third, and final, of three consecutive Utility Information Pipelines reporting the results of the 2019 Utility Fee Survey. 135 utilities, representing 22 states, ranging in size from 89 to 539,000 active accounts participated in the survey.

The Utility Fee Survey has become a biennial survey, alternating years with the Utility Staffing Survey.

As was the case in each of the previous surveys, the results include too much information for a single issue. If you’re interested, here are the results from the 2012, 2015, and 2017 Utility Fee Surveys:

The first results issue summarized the demographics of the survey respondents as well as water and sewer tap and impact fees. The last issue dealt with delinquent fees and policies. Today’s issue is the third and final survey results issue and recaps all remaining fees.

Returned check fees

All 135 participating utilities charge a returned check fee ranging from $10.00 to $50.00, as this graph illustrates (clicking on any of the graphs will open a larger image in a new window):

Interestingly, only 83 (or 61.5%) of the responding utilities charge the maximum fee allowed by their state. 24 utilities (representing 17.8%) charge less than the maximum allowed and 28 (or 20.7%) charge more than the maximum allowed.

If you’re interested in seeing how your fee compares to the maximum allowed for your state, here is a table with all 50 states.

Application fees

In one of the earliest Utility Information Pipeline issues, I wrote about application for service best practices. One of my recommendations was to charge a non-refundable application fee, in addition to any security deposit, to all new accounts. This year, 68 of the 135 utilities (representing 50.4%) responding to the survey charge such an application or administrative fee. This is up from 47.9% in 2017, but down from 51.9% in 2015 and 52.3% in 2012. These application fees range from $5.00 to $250.00 as shown below:

Transfer fees

This year, for the second time, the Utility Fee Survey asked how much utilities charge as a transfer fee for transferring service from one account to another. 62 of the 135 utilities (representing 45.9%) charge a transfer fee ranging from $5.00 to $100.00. This is up from 44.1% in 2017. Transfer fees charged by the responding utilities are shown in this graph:

Meter reread fees

28 of the 135 utilities (or 23.0%) charge a meter reread fee if the customer requests their meter be reread. This is down slightly from 23.7% in 2017 and 23.6% in 2015. In many cases, this fee is waived if it turns out the customer was correct and the utility misread the meter. Of the utilities that charge a meter reread fee, the fee ranges from $5.00 to $50.00, as this graph shows:

Meter tampering fees

101 of the 135 utilities (or 73.3%) charge a meter tampering fee. This is down from 77.1% in 2017 and 73.6% in 2015 but up from 60.2% in 2012. Seven utilities charge the actual cost of repairs or cost plus an administrative fee. One additional utility recovers their costs through the judicial system. Six utilities have an escalating fee that increases with each meter tampering offense. The remaining 87 utilities charge a flat fee ranging from $25.00 to $1000.00 as shown below:

Of the six utilities that charge an escalating fee, here are the charges for the first, second, and third offenses:

Convenience fees

One of my earliest issues explained why I believe utilities should accept credit cards. Of the 135 utilities responding to the survey, 122 of them (or 90.4%) accept credit cards. This is an increase from 89.0% in 2017, 81.1% in 2015, and 62.5% in 2012. Clearly, credit card acceptance has become standard practice for most utilities. Of the 122 that do accept credit cards, 85 (or 69.7%) of these charge a convenience fee on at least one method of credit card payments as shown below:

This is the second year the survey asked if the convenience fee is charged by the utility or by a third party. Of the 85 utilities that charge a convenience fee, 69 (or 81.2%) are charged by a third party as shown below. This is up from 69.4% in 2017.

The convenience fees charged by these utilities are too diverse in how they are assessed to be graphed, so they are presented here in a table.

Other fees

In addition to the fees that have been described in the three results issues, the survey asked what other fees utilities charge. Below I’ve listed a few of the more creative fees that were reported:

Meter test or calibration fee

At least 15 utilities charge a fee if the customer requests that their meter be tested or calibrated. The survey didn’t specifically ask about meter test fees however, most only charge the fee if the test results validate that the meter is registering correctly.

Return trip fee

When turning a meter on, most utilities will not leave the water on if the meter indicates water is running inside the house and no one is home. This requires the utility to make a return trip when the customer is home to turn the meter on again. Several utilities charge a return trip fee to cover the time and expenses involved in returning to the customer’s home.

Field collection fee

Most utilities have adopted the best practice of not collecting money in the field on cut-off day. At least one utility still allows customers to pay the field technician to avoid being cut off and they charge an additional $25.00 to provide that service.

A special offer

I still have a few slots left for the special offer I’m offering to the first five Utility Information Pipeline subscribers who respond. If you are one of the first five to respond, I will conduct a personalized fee consultation for one-third off the regular price. That’s $1,000 rather than the usual $1,500 price for this service!

I will review your utility’s current fee schedule and conduct an in-depth phone assessment to learn more about your fees. You will receive a presentation quality document illustrating how your fees compare with other utilities. Also included will be my recommendations for revising any existing fees and suggestions of new fees you should consider charging.

If you are interested in this special offer, please contact me by calling 919-673-4050 or e-mailing me at gsanders@edmundsgovtech.com. Remember, the special discount offer is only available to the first five people who respond!

Click here to subscribe to my free, bi-weekly email newsletter...

© 2019 Gary Sanders

2019 Utility Fee Survey Results – Part II

Over the course of the past few months, I’ve been conducting the 2019 Utility Fee Survey. This is an update to the original Utility Fee Survey in 2012 and subsequent fee surveys in 2015 and 2017. The survey was designed to research what fees utilities charge, how much they charge for each fee, and to see what trends, if any, are occurring with fees.

This is the second of three consecutive Utility Information Pipelines reporting the results of the 2019 Utility Fee Survey. 135 utilities, representing 22 states, ranging in size from 89 to 539,000 active accounts participated in the survey.

The Utility Fee Survey has become a biennial survey, alternating years with the Utility Staffing Survey.

As was the case in each of the previous surveys, the results include too much information for a single issue. If you’re interested, here are the results from the 2012, 2015, and 2017 Utility Fee Surveys:

The last issue summarized the demographics of the survey respondents as well as water and sewer tap and impact fees. Today’s issue deals with delinquent fees and policies. The next issue will be the third and final survey results issue and will recap all remaining fees.

Late fees

Of the 135 participating utilities, 133 charge a late fee. As shown by this graph, charging a late fee as a percentage of the bill is the most popular method (clicking on the any of the graphics will open a larger image in a new window):

Compared to the 2017 Utility Fee Survey, utilities charging a percentage is down (52.6% vs. 59.3%), while those charging a flat amount is up slightly (27.8% vs. 26.1%). The largest increase is in utilities charging something other than a percentage or flat amount (up from 13.0% to 19.5%).

Utilities that assess the late fee as a percentage charge from 1% to 25%, with 10% again being by far the most popular, as this graph depicts:

Late fees range from $5.00 to $50.00 for utilities that charge a flat amount. This graph illustrates the late fee flat amounts:

Thirteen of the utilities (up from eight in 2017, a 62.5% increase) charge a hybrid late fee – a combination of a percentage with a minimum amount. Here is a graph showing what they charge:

Seven utilities charge a base amount plus a percentage as shown below:

While not technically a fee, this year’s survey again asked how, other than the utility bill, each utility notifies customers that a late fee or penalty has been applied. Here are the responses to that question (the total of all responses is greater than the number of participating utilities because some utilities use multiple methods of contact):

Cut-off fees

Seventeen of the 135 utilities do not cut off for non-payment. All of the 118 that do cut off for non-payment charge a cut-off or reconnect fee as a flat amount. Three of the responding utilities charge an escalating cut-off fee whereby the more times a customer is on the cut-off list, the higher the fee becomes. In those cases, the amount shown in the graph is for first offenders. Additionally, three of the utilities charge a separate disconnect fee and reconnect fee. In those cases, the graph represents the combined total of both fees. Finally, three additional utilities charge a cut-off fee per service. In those cases, the graph assumes all services are being disconnected.

Cut-off or reconnect fees charged by the 118 utilities range from $15.00 to $550.00 as shown below:

Of the 118 utilities that cut off for non-payment, 76 of them (representing 64.4%) assess the cut-off fee as soon as the cut-off list leaves the office. Surprisingly, the percentage of utilities charging the cut-off fee immediately is down 9.5% from the 2017 Utility Fee Survey.

Cut-off fee terminology

As utilities adopt the best practice of charging the cut-off fee as soon as the cut-off list leaves the office, many are finding that terms such as “cut-off fee”, “disconnect fee” or “reconnect fee” are becoming outdated. For that reason, the survey asked what each utility calls its cut-off fee. The results are displayed in the following chart:

For the number of responses, including the 26 terms included in the “other” category, please click here.

Again this year, Reconnect Fee is still the most popular term, but Non-Payment Fee has replaced Cut-Off Fee as the second most popular term, as many utilities adopt terms that do not refer to cut-off or reconnection. Calling your cut-off fee Non-Payment Fee, Delinquent Fee, Service Fee, or any of the other terms not implying cut-off or reconnection helps to avoid the inevitable arguments with customers who must pay the fee but have not been cut off.

As with late fees, the survey also asked how, other than the utility bill, customers are notified that they are about to be cut-off for non-payment. The responses are shown below (again, the total of all responses is greater than the number of participating utilities because some utilities use multiple methods of contact):

This year’s survey also asked how utilities notify customers after they have been disconnected for non-payment. The responses are shown below (again, a few of the participating utilities employ multiple methods of contact):

After hours reconnect fees

Of the 118 utilities that cut off for non-payment, 61 of them (representing 51.7%) will reconnect after hours and charge a fee for this service. This is down from 42.6% of responding utilities in the 2017 Utility Fee Survey. 43 of the 61 utilities (or 70.5%) will reconnect anytime after regular office hours. The remaining 18 utilities will only reconnect during selected time periods as shown below:

After hours reconnect fee amounts range from $15.00 to $300.00 as shown by the following graph:

Same day reconnect fees

A new question in this year’s survey asked how many utilities charge a fee for same-day reconnection for non-payment. Five utilities charge a fee for this service, ranging from $10.00 to $35.00, as shown below:

Next issue

Part III – October 29, 2019

The final survey results issue will showcase any remaining fees, including application, returned check, meter reread, meter tampering and convenience fees.

A special offer

I’m offering a special offer to the first five Utility Information Pipeline subscribers who respond. If you are one of the first five to respond, I will conduct a personalized fee consultation for one-third off the regular price. That’s $1,000 rather than the usual $1,500 price for this service!

I will review your utility’s current fee schedule and conduct an in-depth phone assessment to learn more about your fees. You will receive a presentation quality document illustrating how your fees compare with other utilities. Also included will be my recommendations for revising any existing fees and suggestions of new fees you should consider charging.

If you are interested in this special offer, please contact me by calling 919-673-4050 or e-mailing me at gsanders@edmundsgovtech.com. Remember, the special discount offer is only available to the first five people who respond!

Click here to subscribe to my free, bi-weekly email newsletter...

© 2019 Gary Sanders

2019 Utility Fee Survey Results – Part I

Over the course of the past few months, I’ve been conducting the 2019 Utility Fee Survey. This is an update to the original Utility Fee Survey in 2012 and subsequent fee surveys in 2015 and 2017. The survey was designed to research what fees utilities charge, how much they charge for each fee, and to see what trends, if any, are occurring with fees.

The Utility Fee Survey has become a biennial survey, alternating years with the Utility Staffing Survey.

As was the case in each of the previous surveys, the results include too much information for a single issue. If you’re interested, here are the results from the 2012, 2015, and 2017 Utility Fee Surveys:

This is the first of three consecutive Utility Information Pipelines publishing the results of the 2019 Utility Fee Survey. The other two installments will be published on October 15 and 29.

Demographics of survey respondents

135 utilities (a 14.4% increase from 2017), representing 22 states (a 15.8% increase from 2017), ranging in size from 89 to 539,000 active accounts participated in the survey. Click on the links below to see charts of the various demographic data:

Tap fees and impact fees

The survey started with water and sewer tap and impact fees. There are some key distinctions to bear in mind when comparing tap and impact fees.

Tap fees should recover the cost of making the actual water or sewer tap. This includes direct costs such as labor, materials, and vehicle use as well as any indirect costs associated with completing the tap. Tap fees are classified as operating revenues.

Impact fees, sometimes called availability fees or system development charges, are designed to cover the incremental capital cost of adding an additional user to the water or sewer system. Impact fees are classified as non-operating revenues.

For utilities charging an impact fee based on number of bedrooms, monthly or daily usage, square footage, or lot size, I assumed three bedrooms or 3,000 gallons per month or 1700 square feet or one-quarter of an acre.

Residential water tap fees charged by utilities responding to the survey range from $150.00 to $10,925.00 as shown below (clicking on the any of the graphics will open a larger image in a new window):

One other utility charges based on the time and materials cost incurred for a residential water tap at actual cost.

Utilities responding to the survey charge residential sewer tap fees ranging from $75.00 to $6,300.00 as depicted by this graph:

One additional utility charges the actual time and materials cost incurred for a residential sewer tap.

Residential water impact fees charged by utilities responding to the survey range from $11.60 to $4,000.00 as shown in this graph:

One additional utility charges water impact fees to commercial customers based on the type of business.

Utilities responding to the survey charge residential sewer impact fees ranging from $50.00 to $5,540.00 as shown here:

One additional utility charges sewer impact fees to commercial customers based on the type of business.

Upcoming issues

 

Part II – October 15, 2019

The next issue will deal with delinquent account fees and policies, including late fees, cut-off fees, and after-hours reconnect fees.

Part III – October 29, 2019

The final survey results issue showcases any remaining fees, including application, returned check, meter reread, meter tampering, and convenience fees.

A special offer

I’m offering a special offer to the first five Utility Information Pipeline readers who respond. If you are one of the first five to respond, I will conduct a personalized fee consultation for one-third off the regular price. That’s $1,000 rather than the usual $1,500 price for this service!

I will review your utility’s current fee schedule and conduct an in-depth phone assessment to learn more about your fees. You will receive a presentation quality document illustrating how your fees compare with other utilities. Also included will be my recommendations for revising any existing fees and suggestions of new fees you should consider charging.

If you are interested in this special offer, please contact me by calling 919-673-4050 or e-mailing me at gsanders@edmundsgovtech.com. Remember, the special discount offer is only available to the first five people who respond!

Invitation to participate in 2019 Utility Fee Survey

You’re invited to participate in the 2019 Utility Fee Survey. I’m researching what fees different utilities charge and how much they charge for each fee.

Previous Survey Results

I conducted similar surveys in 2012, 2015, and 2017. You can review the results of those surveys here:

The Utility Fee Survey is a biennial survey, alternating years with the Utility Staffing Survey.

The results of the survey will be published in a series of upcoming e-mail newsletters. To be sure you receive the results of the survey, if you haven’t already signed up for my free e-mail newsletter, please click here to subscribe.

Complete the 2019 Utility Fee Survey

If you would like to participate, please click here to complete the survey. It should take less than five minutes to complete.

If you have any questions, please feel free to e-mail me at gsanders@logicssolutions.com or call me at 919-232-2320.

I’m hoping for as much participation as possible in the survey, so please feel free to pass this on to your colleagues at other utilities.

Thank you in advance for your participation in the 2019 Utility Fee Survey.

Is your fee schedule up-to-date?

If, after completing the 2019 Utility Fee Survey, you’re wondering if your fee schedule is up-to-date, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help you prepare for the transition.

 

Click here to subscribe to my free, bi-weekly email newsletter...

© 2019 Gary Sanders

Keep reading for free consulting!

I’ve participated in lots of sales training over the years. In a consultative sales environment, where the seller makes an effort to learn about the buyer’s needs before recommending a solution, one of the things we’re taught to avoid is “free consulting”. Free consulting is considered to be giving away information and advice that a prospect would otherwise pay to receive.

Truth be told, a lot of what I write about in this newsletter could be considered free consulting, but I do it to educate my readers and establish both my and Logics’ credibility in the utility billing software marketplace.

Observations from 2017 Utility Fee Survey

Keep reading because I’m about to give away some “free consulting” based on the results of the 2017 Utility Fee Survey. The last Utility Information Pipeline, which was the third and final installment of the Fee Survey results, included returned check fees.

One of the surprising observations was how many utilities either charge more or less than the maximum allowable fee for their state. Of the 117 utilities completing the survey, 27 utilities (representing 23.1%) charge less than the maximum allowed for their state and 26 (or 22.2%) charge more.

The graph below illustrates the utilities that do not charge the maximum allowable for their state and how much their fee is below or above the maximum allowed (clicking on the chart will open a larger image in a new window):

Free consulting

Here’s the free consulting… Take a moment to verify if your returned check fee is the maximum allowed in your state and, if you are charging less than the maximum allowed, increase it at your first opportunity!

Why would you charge less than the maximum allowed for customers who intentionally write bad checks to your utility? (You can always waive the fee if your customer has a convincing explanation of why their check bounced.) If you’ve been reading the Utility Information Pipeline for a while, you know I am a proponent of charging user fees to generate revenue wherever possible and returned check fees are no exception.

If you’re charging more than is allowed

If your returned check fee is more than is allowed for your state, I recommend reviewing this with your attorney to determine if your customers have any legal recourse against your utility for overcharging them.

What is allowed in your state?

Here is a guide by state and here is a more in-depth analysis, including references to the statute that governs returned check fees in each state. If you have any doubts about what you are allowed to charge in your state, I suggest consulting with your attorney.

Is it time to review your fees?

If you haven’t reviewed your fees recently, there’s no time like the present! If you have questions about the fees you charge or would like assistance reviewing your fee structure, please give me a call at 919-232-2320 or e-mail me at gsanders@logicssolutions.com to learn how a business review might benefit your utility.

NRWA WaterPro Conference

Will you be attending the National Rural Water Association WaterPro Conference in Reno? If you will, or know someone who will be, please make plans to attend my presentation Improving Revenue Collections for Utilities at 4:00 pm on Monday, September 18.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2017 Gary Sanders

2017 Utility Fee Survey Results – Part III

This is the last of three consecutive Utility Information Pipeline issues reporting the results of the 2017 Utility Fee Survey, an update to the original Utility Fee Survey in 2012 and the 2015 Utility Fee Survey. The survey was designed to research what fees utilities charge, how much they charge for each fee, and to see what changes have taken place in the last two years.

118 utilities, representing 19 states, ranging in size from 88 to 75,000 active accounts participated in the survey.

The first issue summarized the demographics of the survey respondents as well as water and sewer tap and impact fees. The last issue dealt with delinquent fees and policies. Today’s issue explores the remaining fees.

The Utility Fee Survey has become a biennial survey, alternating years with the Utility Staffing Survey.

As was the case in each of the previous surveys, the results include too much information for a single issue. If you’re interested, here are the results from the 2012 and 2015 Utility Fee Surveys:

 

2012 Utility Fee Survey Results – Part I

2012 Utility Fee Survey Results – Part II

2012 Utility Fee Survey Results – Part III

 

2015 Utility Fee Survey Results – Part I

2015 Utility Fee Survey Results – Part II

2015 Utility Fee Survey Results – Part III

 

Returned check fees

Of the 118 participating utilities, only one does not charge a returned check fee. For the other 117 utilities, returned check fees range from $10.00 to $50.00, as this graph illustrates (clicking on any of the graphs will open a larger image in a new window):

Interestingly, of the 117 utilities who charge a returned check fee, only 64 (or 54.7%) charge the maximum fee allowed by their state. 27 utilities (representing 23.1%) charge less than the maximum allowed and 26 (or 22.2%) charge more than the maximum allowed.

If you’re interested in seeing how your fee compares to the maximum allowed for your state, here is a table with all 50 states.

Application fees

In one of the earliest Utility Information Pipeline issues, I wrote about application for service best practices. One of my recommendations was to charge a non-refundable application fee, in addition to any security deposit, to all new accounts. This year, 56 of the 118 utilities (representing 47.9%) responding to the survey charge such an application or administrative fee. This is down from 51.9% in 2015 and 52.3% in 2012. These application fees range from $5.00 to $150.00 as shown below:

Transfer fees

This year, for the first time, the Utility Fee Survey asked how much utilities charge as a transfer fee for transferring service from one account to another. 52 of the 118 utilities (representing 44.1%) charge a transfer fee ranging from $5.00 to $100 as shown in this graph:

Meter reread fees

28 of the 118 utilities (or 23.7%) charge a meter reread fee if the customer requests their meter be reread. This is virtually unchanged from 2015, where 23.6% of responding utilities charged a meter reread fee. In many cases, this fee is waived if it turns out the customer was correct and the utility misread the meter. Of the utilities that charge a meter reread fee, the fee ranges from $5.00 to $45.00 as this graph shows:

Meter tampering fees

91 of the 118 utilities (or 77.1%) charge a meter tampering fee. This is up from 73.6% in 2015 and 60.2% in 2012. Eleven utilities charge the actual cost of repairs or cost plus an administrative fee. Three charge a fee that depends on the type of meter tampering or damage done to the meter. Four more utilities recover their costs through the judicial system. Ten utilities have an escalating fee that increases with each meter tampering offense. The remaining 63 utilities charge a flat fee ranging from $10.00 to $1000.00 as shown below:

Of the ten utilities that charge an escalating fee, here are the charges for the first, second and third offenses:

Convenience fees

One of my earliest issues explained why I believe utilities should accept credit cards. Of the 118 utilities responding to the survey, 105 of them (or 89.0%) accept credit cards. This is an increase from 81.1% in 2015 and 62.5% in 2012, so credit card acceptance is quickly becoming a standard practice for most utilities. Of the 105 that do accept credit cards, 62 of these charge a convenience fee on at least one form of credit card payments as shown below:

This year, for the first time, the survey asked if the convenience fee is charged by the utility or by a third party. By a large margin, most convenience fees are assessed by a third party as shown here:

The convenience fees charged by these utilities are too diverse in how they are assessed to be graphed, so they are presented here in a table.

Other fees

In addition to the fees that have been described in the three results issues, the survey asked what other fees utilities charge. Below I’ve listed a few of the more creative fees that were reported:

Meter test fee

A number of utilities charge a fee if the customer requests that their meter be tested. The survey didn’t specifically ask about meter test fees, however most do not charge the fee if it turns out the meter is, in fact, registering incorrectly.

Return trip fee

When turning a meter on, most utilities will not leave the water on if the meter indicates water is running inside the house and no one is home. This requires the utility to make a return trip when the customer is home to turn the meter on again. Several utilities charge a return trip fee to cover the time and expenses involved in returning to the customer’s home.

Same day connection fee

A number of utilities routinely provide next day service for activating new accounts. A few of these utilities charge an additional fee for providing same day service.

Field collection fee

Most utilities have adopted the best practice of not collecting money in the field on cut-off day. At least one utility still allows customers to pay the field technician to avoid being cut off and they charge an additional $25.00 to provide that service.

A special offer

I still have a couple slots left for the special offer I’m offering to the first five Utility Information Pipeline readers who respond. If you are one of the first five to respond, I will conduct a personalized fee consultation for one-third off  the regular price. That’s $1,000 rather than the usual $1,500 price for this service!

I will review your utility’s current fee schedule and conduct an in-depth phone assessment to learn more about your fees. You will receive a presentation quality document illustrating how your fees compare with other utilities. Also included will be my recommendations for revising any existing fees and suggestions of new fees you should consider charging.

If you are interested in this special offer, please contact me by calling 919-232-2320 or e-mailing me at gsanders@logicssolutions.com. Remember, the special discount offer is only available to the first five people who respond!

NRWA WaterPro Conference

Will you be attending the National Rural Water Association WaterPro Conference in Reno? If you will, or know someone who will be, please make plans to attend my presentation Improving Revenue Collections for Utilities at 4:00 pm on Monday, September 18.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2017 Gary Sanders