http://www.wral.com/late-payments-bad-credit-could-affect-your-power-bill/13408976/

Quote :

"RALEIGH, N.C. — When the power bill arrives, most people don’t expect it to be $200, $300 or even $26,000 more than normal, but that is what happened to multiple Duke Energy Progress customers. They reached out to 5 On Your Side to complain that they were blindsided by bills with added deposits without notice. Mary Ann Schultz says she opened her bill to find that it included an unexpected $458 deposit. “I said, ‘Gosh, did I not pay the bill? Am I losing my mind?’” she said. Jeff Brooks with Duke Energy Progress says “deposit policies exist to protect customers whose accounts are in good standing from those whose accounts may not be in good standing.” He says more customers are being hit with deposits because the company now automatically reviews its accounts, as well as a customers’ overall credit rating. The charges are based on “triggering events,” Brooks said, such as: two or more late payments in a year, even if the customer is only one day past due a warning notice that the customer will be disconnected any negative change to a customer’s credit history Many of the customers who complained to 5 On Your Side said they have never been late on a payment, had a good payment history or always paid their bill. “It’s like a slap in the face,” said Schulz. Part of the trigger for Schulz’s deposit fee was a bankruptcy filing in 2012 after Hurricane Sandy ripped her dream home into the ocean, which ruined her credit. “(Duke Energy Progress) said, ‘Well, we sent your information to Experian, and according to them, they said we should get a security deposit,’” Schulz said, adding that she thinks the practice is unfair. TCG Legacy, a printing, packaging and labeling business in Garner, was hit with a $41,000 bill, according to administrative assistant Wendy Majewski. Although the company uses a lot of power in day-to-day printing – about $15,000 per month – the $41,000 bill was shocking. “There it was, (a) $26,000 deposit right there on the bottom,” Majewski said. "I think a phone call was justified rather than just all of a sudden a $26,000 dollar bill. Some conversation between us and them – anything would have been better than the shocker of opening a bill with that amount owed to them." Duke Energy Progress officials say with millions of customers, the bill is the easiest way to reach everyone. They add that residential customers’ deposits gain 8 percent interest after 90 days, but they can be refunded if kept in good standing for 12 months. Customers who are concerned about their credit rating can check it for free each year from each of the three major credit bureaus – Experian, Transunion and Equifax. It’s best to go to annualcreditreport.com and check the report every four months. Besides power bills, credit reports can also affect loans, how much will be charged for insurance, whether a landlord will rent you a home, and it could determine whether an employer offers you a job."

It looks like to me they are trying to raise working capital and blaming it on Experian. Why would they need to use a third party credit report on an existing customer unless they are just looking for an excuse to charge more in deposits.

2/19/2014 6:20:51 PM

Bankrolling the cost to clean up the coal ash spill.

2/20/2014 7:05:43 AM

So, the contract with Duke allows them to flip the deposit on and off, like a light switch?

2/20/2014 3:26:49 PM

Yeah i always thought the deposit was either paid when you started service or never. If they didnt require a deposit when you started the only time they would add one is if you didnt pay and your power was disconnected.

2/20/2014 3:28:48 PM

So they have money to pay Experian to run credit reports over and over on every single customer, but are worried about the possibility a few customers should not pay their last power bill.

2/20/2014 3:48:33 PM

Quote :

"Bankrolling the cost to clean up the coal ash spill."

don't worry, the cost of this will be passed on to customers in the form of increased rates, shareholders won't have to pay anything.

who appoints people to the board that approves rate hikes? Pat.

2/20/2014 3:54:34 PM

Wait, 8% interest? Umm, I'd like to put down a deposit.

2/20/2014 9:23:22 PM

^ my thoughts exactly

2/21/2014 7:11:14 AM

I read something that says the interest does not start accruing for 90 days?

2/21/2014 10:04:32 AM

I too would like to put down a deposit. I live in sc so only 3.5% but that's not bad.

http://www.duke-energy.com/north-carolina/moving/nc-res-monetary-deposits.asp

2/21/2014 2:05:29 PM