Commissioners after the meeting said the upswing in account write-offs, or money that the utility does not expect to recover, was a clear indication that the down economy was pushing more customers into default.
“We’re very concerned about it,” Commissioner Terry Chan said, adding that she and her colleagues would be looking for more frequent updates to track the trend.
The balance sheet of defaulted bills rose sharply with the unfolding turmoil on Wall Street and ensuing economic spiral in the second half of last year, according to the Glendale Water & Power report.
The year-to-year increase in the amount owed by bankrupt customers jumped from 76% below normal in April to 200% above the benchmark set in 2007 in July, according to the report.
Utility officials did not immediately have the breakdown between the number of business versus residential customers included in the figures.
The report came less than two weeks after water rates per hundred cubic feet increased from $1.29 to $1.45 — a 12.4% jump. At the same time, Glendale Water & Power officials said customers this year would see an average 5.9% savings on their electric bills due in part to declining fuel costs.
“We’re endeavoring to hold base [electric] rates flat for the next two years,” General Manager Glenn Steiger told the commission.
The report also indicated that the economic pressures were pushing more customers to seek help.
Customer service calls in December spiked to roughly 10,500, or 50% more than the same period in 2007, according to the report.
