The Board of Public Utilities (BPU) is taking a fresh look at how it handles old customer debt after a lengthy discussion during it’s November 19 Policy Committee session. Board members expressed interest in finding a balanced approach that protects ratepayers but also recognizes that some residents face long standing financial challenges.
During the meeting, members talked about the difference between active collection and passive collection. Active collection means pursuing payment directly, while passive collection happens when a former customer returns and applies for new service. In those cases, the outstanding debt must be addressed before service can begin. BPU leaders noted that for some residents who have been gone for many years, large old balances can become a barrier to returning to Kansas City, Kansas.
Committee members also discussed the statute of limitations for collections and how it may factor into policy decisions. Some board members questioned whether debt that is several years old should continue to block someone from starting service. Others raised concerns about shifting the cost of unpaid bills onto current customers if BPU stops collecting older balances. The conversation highlighted the need to balance fairness with the financial responsibility that comes with managing a public utility.
Members asked staff to gather more information, including how often old debts are recovered, the average amount collected when customers return, and how many balances are written off each year. They also requested data on the largest past due amounts ever repaid by residents. Board members said this information would help them understand whether the policy is encouraging payment or simply keeping people from reopening accounts.
The discussion also touched on how other utilities manage similar situations. Some utilities use a dollar threshold to decide how much debt must be repaid. Others use a mix of dollar limits and the age of the balance. Committee members expressed interest in reviewing those options so they can decide whether BPU should adopt a similar structure.
