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1.09.04 M.U.D. write-off for 2001 a record at $1.4 million The bitterly cold winter of 2000-01, the one that set records for natural gas prices, has set another record: highest number of unpaid bills that the Metropolitan Utilities District has been forced to write off. The M.U.D. Board voted this week to write off $1.4 million in gas bills and $154,000 in water bills from 2001. M.U.D. hasn't given up on collecting the money, said Ron Bucher, assistant general manager of administration. The utility has the legal right to collect on debt for five years. But it is obligated by standard accounting procedures to absorb unpaid debt after two years. Unpaid gas bills from 2001 were more than triple the previous year's total of $437,000. Unpaid water bills exceeded the previous year by about 50 percent. "Based on the history I have, it is the highest amount we've charged off," Bucher said. Despite the high numbers, M.U.D. still beats the national averages for collections, Bucher said. In 2001, the national average for delinquencies per $1,000 in sales was $9.30. Bucher said M.U.D.'s total works out to $6.67. Bucher said a long season of cold weather and high gas prices led to the bigger bills. Hard economic times made it more difficult for people to pay their bills, he said. The slumping economy was reflected, he said, in the rising number of bankruptcies. The delinquent bills have been turned over to collection agencies, and in some cases, the utility's law department. About 4,000 accounts are involved. Bucher said he expects the 2002 charge-off will be significantly lower. M.U.D. has programs to help people with their bills. Through customer contributions and with the assistance of the Salvation Army, the utility runs a heat aid fund. And beginning Monday, a United Way of the Midlands representative will be in the M.U.D. lobby to counsel customers on their finances. The office is located at 1723 Harney St. Sessions are available from 8 a.m. to 4:30 p.m. on weekdays. |
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