8 February 2010 ? Utility customers will soon carry the weight of those that do not pay their bills. Last year a new state law was quietly passed allowing utility companies to pass along bad debt to those who do pay their bills. Until this year, gas and electric rates included a set amount reflecting the utility companies’ estimate of the costs they would incur from unpaid bills. If those costs exceeded the estimate, the utility absorbed the losses. If bad debt fell short of the estimate, the utility pocketed the benefit. Now, customers will pay more if bad debt exceeds the estimate and get a credit on their bills if losses fall short. This causes one to wonder how hard utilities will work to collect unpaid bills if they don’t bear the losses. Be prepared for your utility bills to keep rising.
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February 8, 2010
Daily Real Estate Updates