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New York, NY - 9,639 Con Ed Customers Had Electricity Turned Off Last Month for Nonpayment |
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According to the latest figures from Con Edison, times seem to be tough - predating the recent stock market turmoil.
The utility said that in the month of September, 9,639 residential customers had their electricity turned off for nonpayment, 13 percent more than in the same period in 2007. The amount of those unpaid bills jumped faster - 28.3 percent - to $8.9 million, a reflection of the rise in energy prices.
During the same period, 1,600 nonresidential customers had their power turned off, an 8 percent increase.
The numbers provide a good indication that more people are having financial trouble, because electricity is so crucial to everyday life that families and businesses often do whatever they must to keep the lights on.
Con Ed jumps through a lot of hoops to warn customers that their electricity is in danger of being turned off. It sends as many as five warning letters over a 90-day period before turning a customer's electricity off, according to Michael Clendenin, a spokesman for Con Ed. The company also calls customers and will occasionally visit a residence or business.
During that time, Con Ed gives customers who are in arrears a chance to work out a payment plan, which, more often than not, heads off disaster.
"Most people who get their lights turned off are back on within a month, because they've entered a payment plan or made a payment," Mr. Clendenin said.
In September, 342,073 residential customers were in arrears for more than 60 days, an 18 percent jump from the same period the year before.
All paying customers ultimately pick up the tab for those who stop paying for their electricity. Buried on monthly electric bills is a "merchant function charge," which covers Con Ed's administrative costs.
The item was shown separately starting in April, to help customers compare costs with those of other power providers.
In May, the total charge was 0.5221 cents per kilowatt-hour used. Of that amount, 0.1148 cent is set aside to cover the uncollectible bills that delinquent customers leave behind.
Part of the money also goes to hiring collection agencies that try to track down such customers.
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Read Comments (3) — Post Yours »
1
Oct 12, 2008 at 01:17 AM Anonymous Says:
Not surprising. They keep on raising prices. My electricity bill has doubled since last year and they are up to another price increase soon, at this rate who can afford it.
2
Oct 12, 2008 at 01:28 AM Anonymous Says:
Interesting how these BIG companies never take a loss. Those who do pay need to pay for those who dont. Same with taxes, the phone companies as well always have about 5 surcharges to cover for THEIR liabilites to the goverment. It's a win win situation. This country is in BIG trouble.
3
Oct 12, 2008 at 11:44 AM frum but krum Says:
oy vey vats goin around these days its terrible