According to HEA’s Joe Gallagher, a late fee will be charged on account balances which are not paid within 25 days from the date of billing; however, he said there would be a give day grace period between monthly billings before fees are applied.
Gallagher said HEA was concerned that the costs associated with collecting late payments ($12 to $15 each time) was being spread across the entire membership, when it would be more appropriate for only late-payers to foot the bill. He said that there is an average of 5,000 past due accounts each month, which was proving to be costly.
The late fee will be 0.875 percent of the overdue monthly amount or a minimum of $2, whichever is greater. If the past due account balance is less than $230, the late fee would be the $2 minimum.
HEA says that until now, they were the only electric utility in South Central Alaska that did not have late fees.