ACTION ALERT ! ! !
House Bill 272 is set for consideration by the full House early next week.
Representative Josh Bray is the lead sponsor for House Bill 272, which would create a new section of KRS Chapter 278 to allow water districts and water associations to charge a late payment fee of 10% of the amount billed. This is a long-standing business practice for most businesses and utilities that is being specifically eliminated as an option in recent orders issued by the Kentucky Public Service Commission. Nearly all districts and associations have late payment penalties in their tariffs now. This bill, if it becomes law, would prohibit PSC from modifying, rejecting, or suspending late payment charges established by tariff.
The PSC has recently started abolishing Late Payment Fees for every regulated utility that has a rate case pending. This practice started with the Hyden-Leslie Water District (Case No. 2020-141, dated November 6, 2020) and has been applied in each case since.
Late Payment Fees are:
- an effective management tool to ensure prompt payments
- universally accepted by businesses (including utilities)
- promoted and approved by PSC for over 50 years
Fundamental Fairness
Customers who pay their bills on time should not have to bear the cost for customers who don’t pay their bills on time!
- Utilities incur real costs in collecting late payments (extra mailings, phone calls, collection agencies, cut-off expenses)
- PSC is shifting the cost caused by late payers to all customers
- User rates will increase for all customers by abolishing Late Payment Fees
Please contact your Representative today in support of HB 272!
The Kentucky Rural Water Association will not be hosting its annual Legislative Breakfast this year due to COVID-19 concerns.