Pay Your Bill; PWP Resuming Late Fees on July 1, Shut Offs Coming in August

Customers that have not paid their bills could soon face shut offs as the Pasadena Water and Power (PWP) resumes charging late fees this weekend and service interruptions for non-payment next month.

The utility had suspended these measures three years ago in response to the COVID pandemic.

The move comes as the amount owed by customers with past due bills over 120 days has soared to $8.8 million.

Pre-pandemic the amount was less than $100,000.

PWP will apply late fees to bills generated on or after July 1, but won’t apply the fees to prior balances. 

The first interruption for non-payment will happen on August 23. 

According to Jeremy Marquette, acting General Manager for Finance and Customer Service, all collection efforts will be conducted in a “reasonable” and “compassionate” manner. 

The utility is willing to waive late fees for some customers on a one one time basis.

During the pandemic, many PWP customers experienced financial difficulties due to job losses, income decreases, and local health emergency orders to close or reduce business operations. 

In response, the City Council authorized a refund of the past two years of Utility Underground Surtax collections totaling approximately $11.4 million and suspended the collection of this surtax for six months, totaling around $2 million.

Despite assistance from state programs and the application of $2.7 million in on-hand deposits to delinquent and non-delinquent utility account balances, arrearages continue to rise. 

When it was announced that shutoffs would resume, PWP General Manager Jackson said that low-income customers constitute only a small portion of the total arrearage.

He said PWP must take these collection steps for PWP to remain “fiscally viable.”

Even so, Jackson said it could take more than a year before collections make a significant dent in the amount owed to the utility.

According to Jackson, PWP will apply late fees to bills generated on or after July 1, but won’t apply the fees to prior balances. 

Customers with overdue balances may enroll in payment arrangements. 

Because there are so many customers with past due bills, PWP plans to augment its support staff and may extend call center hours if necessary.

In addition to these measures, PWP will avoid service shutoffs for non-payment on Fridays and the day before a holiday. 

The utility will also launch a proactive communication campaign, informing customers of assistance programs, payment extensions, and long-term payment plans.