Summit's late charges, shutoffs restart in July

Wait until more known, Griffin urges

Attorney General Tim Griffin in a March 16, 2023 news conference announcing he is referring the findings of his offices investigation into Summit Utilities Arkansas, Inc. Summit announced Tuesday that it will resume charging late fees and disconnecting customers for nonpayment beginning in July. (Arkansas Democrat-Gazette/Stephen Swofford)
Attorney General Tim Griffin in a March 16, 2023 news conference announcing he is referring the findings of his offices investigation into Summit Utilities Arkansas, Inc. Summit announced Tuesday that it will resume charging late fees and disconnecting customers for nonpayment beginning in July. (Arkansas Democrat-Gazette/Stephen Swofford)

Summit Utilities Inc. announced Tuesday it will resume charging late fees and disconnecting customers for nonpayment beginning in July, though the plan is opposed by Attorney General Tim Griffin, whose filings sparked an investigation by the Arkansas Public Service Commission.

The natural gas utility voluntarily stopped collecting late fees and disconnecting customers in November after being notified of billing discrepancies and complaints from customers that they were being overcharged.

Two Pulaski County residents filed a lawsuit against the company last month over the problems and Attorney General Tim Griffin also began investigating the utility's billing practices and gas-purchasing procedures. The lawsuit was voluntarily dismissed and Griffin's findings were folded into investigations by the Public Service Commission.

Summit officials said Tuesday the 60-day notice gives customers time to work out a repayment schedule if they are behind on their bills.

"We encourage customers to contact us as soon as possible if they are having difficulty paying their bills so we can work with them to find a solution," Fred Kirkwood, chief customer officer, said in announcing the restart. "Our customer service representatives can help set up payment arrangements if customers need them or direct customers to payment assistance agencies in their area."

Griffin said Tuesday he is opposed to restarting late fees and disconnects in July while the commission investigation is ongoing.

"As the Public Service Commission investigation has just gotten underway, Summit should not resume normal collections," he said Tuesday. "We continue to investigate the complaints received from Arkansans regarding Summit and provide information to the Public Service Commission to assist in their investigation."

Summit should wait to reinstall fees and begin disconnects, according to Griffin.

"I am simply saying it is too soon based upon the limited information we have," he added.

As the chief regulatory authority over utilities in the state, only the Public Service Commission could order suspension of late fees and disconnects, or those opposed to the policies could file suit to block implementation.

Customers who are currently behind on their bills will not have to pay late fees if they make repayment arrangements by July 1 and do not fall behind on that plan, said Brian Bowen, senior director of external affairs.

Public Service Commission regulations allow the utility to charge late fees of 10% for the first $30 and an additional 2% for the remaining balance. Beginning in July, customers will have a two-day grace period to pay newly issued bills by the due date before late fees are charged, Bowen said.

"We are trying to encourage them to get on repayment plans so they don't incur late fees," he added.

Summit will send advance notices to customers before they are disconnected, officials said.

"It is not an automatic disconnect" for late payments, Bowen said Tuesday. "There's several notices that will go out before a disconnect."

Reconnection will cost $37.

More than 3,000 customer complaints related to billing procedures and monthly charges have been filed against Summit since the utility converted ratepayers to the company's billing and customer service systems in November. Late fees and disconnections were suspended soon after.

Summit said it has hired more than 50 customer service representatives since Nov. 1 and is hiring more to address customer concerns.

The company filed updated gas costs March 31 with the Public Service Commission outlining lower rates for customers through Nov. 1. The company said gas costs for residential customers are now $0.6954 per hundred cubic feet, a 43% drop from $1.22 charged over the winter. That figure also represents a 26.7% decrease from the 2022 summer rate, the company said. Gas prices for the industry generally rise in the winter because of higher customer demand.

Summit, based near Denver, purchased the natural-gas assets, distribution system and customers in Arkansas from CenterPoint Energy Resources Inc. in 2021. The company has about 425,000 customers in Arkansas and it also owns natural gas distribution and transmission subsidiaries in Colorado, Maine, Missouri, Oklahoma, and Texas.

Customers can get more information or set up repayment at summitcares.com.

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