Opinion: Liberty explains convenience fee
By Janine Irwin-Webb
As Liberty Utilities’ senior manager of customer care, I appreciate the opportunity to address some of the understandable concerns and frustrations our customers may have over the newly implemented third-party convenience fee for online payments.
Liberty Utilities is a privately owned utility, but regulated by the California Public Utilities Commission (CPUC). The CPUC reviews all of the utilities’ expenses and sets the rates charged to its customers. Consistent with utility practices across the country, the CPUC allows Liberty to assess the convenience fee paid to a third-party vendor for processing certain forms of payment. When Liberty Utilities began operations in January 2011 the existing rate tariff allowed the utility to assess this fee, but Liberty only began collecting it effective Dec. 4, 2013. It should be noted that NV Energy uses the same third-party payment administrator and charges a convenience fee similar to Liberty’s.
The $3.50 convenience fee is applicable only to payments made that require the services of Liberty’s third-party administrator. These payments include any online payment involving a credit card or the one-time use of a debit card or electronic check. If a customer wants to make a payment over the phone using a credit card or a one-time use of a debit card or electronic check, this also requires the services of the third-party administrator since our customer service representative goes online to make this payment on the customer’s behalf. The fee goes directly to the third-party vendor, and Liberty does not profit in any way from it.
Liberty recognizes that credit card payments and one-time debit or electronic check payments may be desirable to customers who are willing to pay for the convenience of this option. We also recognize that other customers may not want to pay for the on-line processing of their payment, so we continue to offer payment options that do not involve a third-party administrator.
There is no convenience charge for a customer who sets up automatic checking account deductions, pays by mail with a paper check, or pays in person with either cash or a paper check at one of our two locations. To further customize their payment option, customers can enroll in our Equal Payment Plan and/or select their payment due date. All these options can be found on our website.
Although we informed our customers about the implementation of the convenience fee several months earlier via statements on their bills and information on our website, we appreciate customers’ input that we need to clarify the reason for this charge. We have made some changes to our website noting the fee is charged by a third-party administrator as well as noting other payment options.
At Liberty Utilities we understand that one size doesn’t fit all, so we hope that these multiple ways to make your utility payment provides you with options that make your life easier. Please visit our website or call one of our customer service representations at 800.782.2506 if you’d like more assistance.
Janine Irwin-Webb is senior manager of customer care at Liberty Utilities.
Sorry – I still think it is a rip-off! Liberty Utilities should visit the SWGas website, and learn more about Customer Services to its customers. SWGas website has individual accounts for subscribers, which give historical use data and allows for payments to be made without fees! Also, I believe one customer wrote a comment that she was charged the $3.50 fee when she went into the Liberty Utilities office to make her payment. REALLY?
Maybe our utility companies should not be privately owned…. cha–ching!
One question – Can I set it up for Liberty Utilities to automatically bill my American Express card in full every month if I agree to pay the $3.50 fee like AT&T, DirecTV, Verizon, etc does?
$3.50 charge to process a credit card?!?! That is absolutely unbelievable in 2014. It’s actually EASIER to process than a paper check via snail mail. This company is bad news for the Basin. Plain and simple.
Don’t service fees when paying for something drive you crazy? Ticketmaster gets about $15 service fee per ticket bought. And many concerts only have tickets sold through Ticketmaster.
Yes is it legal for Liberty Electric to charge, but absent the Liberty electric statement is that Liberty Electric does not have to use a third party processor. They can set this up internally and absorb the overhead.
But one has to seriously question how paying someone (even for services rendered) is for the customer’s convenience? The most convenient thing for me would be to get free electricity!
The letter sounds like an employment essay for Liberty Utilities. If I remember correctly, when we had Sierra Pacific Power, – you could pay your bill on the telephone with their happy employees for NO FEE.. Why don’t you hire some LOCALs to handle payments over the phone for FREE instead of paying third-party administrators (where are they… China?). Grrrrr
I don’t pay service fees for Verizon using a credit card with auto-pay and if I recall STR only accepts credit cards for auto-pay. Also no fee.
Have the credit card and banking regulations changed? It used to be illegal for any entity to charge an extra fee simply because you are paying for services, or commodities via a credit card. How do they legally charge this fee for using a credit card? Visa, MasterCard, and banks used to cut anyone off from accepting credit cards if they were charging for usage.
$3.50 will look like pocket change once Liberty’s 49,000 customers have to pay for a $50 million power line “upgrade” project on North Shore to supply Northstar, Squaw, and Homewood with what they need to develop more (and no, the resorts who’ll make money from this won’t be paying their fair share of the upgrade – that’s coming from our pockets).
Check out this article; it’s a bit dated, but the deadline for comments on the draft environmental review ended yesterday, so the final will probably come out this year. Just another resort-sponsored washout of the locals. Might as well sign your house over to Vail now and get the agony over with.
https://www.laketahoenews.net/2013/03/letter-liberty-ratepayers-will-be-unfairly-charged/
What greed you try and pay your bill on time online and now they have figured out how to suck out a little more mony from you every month ,think of the thousands of dollars they make in kick backs from this “third party “. Does anyone know what there profits were last year ? You tell me they can absorb this fee that no one else seems to be charging I guess its back to snail mail for Libert Electric now they can do more paper work in there office you guys suck !
There are many corporations that charge check paying customers a fee for sending them a bill and paying by check. I will never give these corps. Access to my checking acct. For the convenience of having some sort of automatic payment but because of that choice I am discriminated against and charged a fee. It usto be the way and now they want you to do everything online where cyber hackers prey on everyone. NO thanks!!!
CASH ONLY ,KEEP YOUR 3,50 TO YOURSELF, ITS OUR MONEY,GO IN, PAY YOUR BILL WITH CASH, KEEP YOUR MONEY,
Just an observation. The claim that “…Liberty does not profit in any way from it” is a bit misleading. By not having employees that do the billing, Liberty saves a considerable amount of money. Not exactly profit but misleading regardless. Who decided to use a third-party company? The customers? Probably not.
I pay 3.5% of all of my credit card collections as a service fee to my credit card servicing agent. Amex wanted 5.5% because we have a small business, so we couldn’t do that. If the average power bill is about $75 then the credit card would be charging $2.63 plus $0.35 per charge for a total of $2.98. I am guessing on the average bill, but its easy to see where this is cost neutral.
All I know is, something is up. Just got my December bill today. . . up from $63 a month ago, to $100 now. And I didn’t have Christmas lights!! Nothing changed. . . except apparently nearly doubling kwh?? Something is up.
Moral, 3.5% credit card fee for a high volume low fraud risk account like utility billing is a bit high. The actual effective rate (including all fees) should average in the 1.25% to 1.75% range on a utility bill. At 1.5%, the fee would be $1.25 on a $75 bill. Not an inconsequential amount by any means, but, it does not justify a $3.50 convenience fee either.
I went in last month had a bill for 68,00. I used my dept card,Wells Fargo , they told me it would be 3.50 extra, I said what ? they said they would have to charge 3,50 extra, So I asked if I came in with cash would you still charge me extra? they said no, What more do you want to know, From now on its cash only, Its your money ,do what you want, But 3,50 now days is a lot ,I can buy 3 loafs of bread for that ,at the Out lit store, Just my common sense,Its my money,Its my budget I have to live on monthly to survive,Think wisely,My feelings,Did I pay the extra on my credit card? no went and got cash out of the bank,
Here’s an idea, put up a toll gate on your property blocking the meter reader. Toll? $3.50. If they want to charge us to pay an extra fee to pay our bill then Liberty can pay YOU to enter YOUR property, otherwise it’s trespassing with a fine and possible jail time for repeat offenders.
Outlandish? Most definitely. Unworkable? Most assuredly. Illegal? Yep.
I’m having some fun with a serious scam from what appears to be a shfty, greedy company.
Just another crazy idea from yours truly, OLS
Relax, corporations are people too. They mean well, have feelings, and I am certain that if you can just talk to them, they will demonstrate their empathy.
That’s why they are allowed to donate limitless amounts of money to participate in the democracy, just like you and I.
To get around the service fee, pay in cash. Hard cash. They heavy kind, made of metal. Just bring them bags of it. It’s money, they like money, they will be thrilled.
(I think it is time for a penny protest)
The real problem here is the CPUC which is a useless state agency that rubber stamps every increase proposal handed them by these utility companies.
All our utility companies under them operate with literally no regulation or restrictions what so ever when never questioned for increases or additional misc fees. We’re being ripped-off with no recourse
Additional fees for payment, like these, should all be deemed illegal by federal law. This is another example of congress failing the U.S. citizens. Without a federal prohibition, there will be no end to these kinds rip offs. If all of us paid in cash, they could then implement a cash handling fee.
got my dog’s claws trimmed yesterday at alpine animal hospital, a process handled professionally and priced reasonably, and paid with my credit card. OF NOTE: no convenience fee…