Every other year, in odd-numbered years, I conduct the Utility Fee Survey. This survey was designed to research what fees utilities charge, how much they charge for each fee, and to see what trends, if any, are occurring with fees. Here are links to previous Utility Fee Surveys:
2015 Utility Fee Survey Results
2017 Utility Fee Survey Results
2019 Utility Fee Survey Results
2021 Utility Fee Survey Results
2023 Utility Fee Survey Results
The Utility Fee Survey alternates years with the Utility Staffing Survey, which is conducted in even-numbered years. Below are the results of the 2025 Utility Fee Survey.
Demographics of survey respondents
124 utilities, representing 22 states, ranging in size from 90 to 122,508 active accounts, participated in the survey. Click on the links below to see charts of the various demographic data:
Size of participating utilities
Size of participating utilities under 20,000 accounts
Services provided by responding utilities
Positions of individuals completing survey
Tap fees and impact fees
The survey started with water and sewer tap and impact fees. There are some key distinctions to bear in mind when comparing tap and impact fees.
Tap fees should recover the cost of making the actual water or sewer tap. This includes direct costs such as labor, materials, and vehicle use, as well as any indirect costs associated with completing the tap. Tap fees are classified as operating revenues.
Impact fees, sometimes called availability fees or system development charges, are designed to cover the incremental capital cost of adding an additional user to the water or sewer system. Impact fees are classified as non-operating revenues.
Residential water tap fees charged by utilities responding to the survey range from $25.00 to $25,754.00 as shown below (clicking on any of the graphics will open a larger image in a new window):
Because the one very large tap fee distorts the smaller tap fees, here is a graph of tap fees under $7,000.00:
Seven other utilities charge based on the time and materials cost incurred for a residential water tap at actual cost, or actual cost plus a markup.
Utilities responding to the survey charge residential sewer tap fees ranging from $50.00 to $10,000.00 as depicted by this graph:
Four additional utilities charge the actual time and materials cost incurred for a residential sewer tap.
Residential water impact fees charged by utilities responding to the survey range from $200.00 to $8,960.00, as shown in this graph:
Two additional utilities charge an impact fee that is calculated either based on the square footage of the house or estimated usage.
Utilities responding to the survey charge residential sewer impact fees ranging from $247.00 to $6,600.00, as shown here:
Five additional utilities charge an impact fee that is calculated.
Late fees
Of the 124 participating utilities, 121 charge a late fee. As shown by this graph, charging a late fee as a percentage of the bill is by far the most popular method (clicking on any of the graphics will open a larger image in a new window):
Compared to the 2023 Utility Fee Survey, utilities charging a percentage late fee increased (62.1% vs. 54.1%). Those charging a flat amount are down (27.4% vs. 33.0%). Also seeing a decrease are utilities charging something other than a percentage or flat amount (down from 11.0% to 8.1%).
Utilities that assess a late fee as a percentage charge from 1% to 25%, with 10% the most popular by a very wide margin, as this graph depicts:
Late fees range from $5.00 to $60.00 for utilities charging a flat amount. This graph illustrates the late fee flat amounts:
Six of the utilities (down from 7 in 2023, but 15 in 2021) charge a hybrid late fee – a combination of a percentage with a minimum amount. Here is a graph showing what they charge:
Four utilities charge a base amount plus a percentage, as shown below:
While not technically a fee, this year’s survey again asked how, other than the utility bill, each utility notifies customers that a late fee or penalty has been applied. Here are the responses to that question (the total of all responses is greater than the number of participating utilities because some utilities use multiple notification methods):
Cut-off or reconnect fees
Six of the 124 utilities do not cut off for non-payment. The remaining 118 that do cut off for non-payment all charge a cut-off or reconnect fee as a flat amount. Two of the responding utilities charge an escalating cut-off fee whereby the more times a customer is on the cut-off list, the higher the fee becomes. In those cases, the amount shown in the graph is for first offenders. Additionally, three of the utilities charge a separate disconnect fee and reconnect fee. In those cases, the graph represents the combined total of both fees. Finally, two additional utilities charge a cut-off fee per service. In those cases, the graph assumes all services are being disconnected.
Cut-off or reconnect fees charged by the 118 utilities range from $15.00 to $225.00, as shown below:
Of the 118 utilities that cut off for non-payment, 84 of them (representing 71.2%) assess the cut-off fee as soon as the cut-off list leaves the office. The percentage of utilities charging the cut-off fee immediately is down 5.6% from the 2023 Utility Fee Survey:
Cut-off fee terminology
As utilities adopt the best practice of charging the cut-off fee as soon as the cut-off list leaves the office, many are finding that terms such as “cut-off fee”, “disconnect fee”, or “reconnect fee” are becoming outdated. For that reason, the survey asked what each utility calls its cut-off fee. The results are displayed in the following chart:
Shown below are the number of responses for each term, including the 23 terms included in the “Other” category. The terms in bold are terms that do not state or imply disconnect or reconnect, which I highly recommend.
Again this year, Reconnect Fee is still the most popular term, but Non-Payment Fee and Delinquent Fee have become the second and third most popular terms, as many utilities adopt terminology that does not refer to cut-off or reconnection. Calling your cut-off fee Non-Payment Fee, Delinquent Fee, Administrative Fee, or any of the other terms not implying cut-off or reconnection helps to avoid the inevitable arguments with customers who must pay the fee but have not been cut off.
As with late fees, the survey also asked how, other than the utility bill, customers are notified that they are about to be cut off for non-payment. The responses are shown below (again, the total of all responses is greater than the number of participating utilities because some utilities use multiple methods of contact):
This year’s survey also asked how utilities notify customers after they have been disconnected for non-payment. The responses are shown below (again, a few of the participating utilities employ multiple methods of contact):
After-hours reconnect fees
Of the 118 utilities that cut off for non-payment, 46 of them (representing 39.0%) will reconnect after hours and charge a fee for this service. This is down from 46.5% of responding utilities in the 2023 Utility Fee Survey.
37 of the 46 utilities (or 80.4%) will reconnect anytime after regular office hours. The remaining nine utilities will only reconnect during selected time periods as shown below:
After-hours reconnect fee amounts range from $25.00 to $250.00, as shown by the following graph:
Same day reconnect fees
The survey also asked how many utilities charge a fee for same-day reconnection for non-payment. Seven utilities charge a fee for this service, ranging from $20.00 to $110.00, as shown below:
Returned check fees
All 124 participating utilities charge a returned check fee ranging from $10.00 to $50.00, as this graph illustrates (clicking on any of the graphs will open a larger image in a new window):
Interestingly, only 41 (or 33.0%) of the responding utilities charge the maximum fee allowed by their state. 18 utilities (representing 14.5%) charge more than the maximum allowed, and 65 (or 52.4%) charge less than the maximum allowed.
If you’re interested in comparing your fee to the maximum allowed in your state, here is a table with the fees for all 50 states. This website specifically references the amount a landlord can charge for a returned check, but I believe it is also accurate for utility bills. I like this website because it references the applicable law for each state.
If you compare this chart to the same chart for 2023, you will notice many more utilities charge less than the state maximum than did in 2023. This is because, in 2023, I was using outdated data for North Carolina’s maximum returned check fee, which was increased from $25.00 to $35.00 in 2019. Of the 57 utilities from North Carolina that participated in the 2025 Utility Fee Survey, 41 are still charging the old maximum fee of $25.00. If you’re interested, here is a link to NCGS § 25-3-506, and here is a link to Senate Bill 529 from 2019, which increased it.
Application fees
In any of my presentations on fees, one of the biggest takeaways for the audience is to charge a non-refundable application fee, in addition to any security deposit, for all new accounts. This year, 75 of the 124 utilities (representing 60.5%) responding to the survey charge such an application or administrative fee, which is the highest percentage reported since the Utility Fee Survey began. These application fees range from $5.00 to $2,020.00 as shown below:
Several of the larger fees are membership fees for member-owned utilities, which skews the graph. Here is a graph of application fees of $250.00 or less:
Transfer fees
The Utility Fee Survey also inquired about the amount utilities charge as a transfer fee for transferring service from one account to another. Of the 124 responding utilities, 60 (representing 48.4%) charge a transfer fee, ranging from $5.00 to $100.00. Transfer fees charged by the responding utilities are shown in this graph:
Meter reread fees
25 of the 124 utilities (or 20.2%) charge a meter reread fee if the customer requests their meter be reread. In many cases, this fee is waived if it is determined that the customer was correct and the utility misread the meter. Of the utilities that charge a meter reread fee, the fee ranges from $10.00 to $50.00, as this graph shows:
Meter test or calibration fees
Again this year, the Utility Fee Survey asked how much utilities charge as a meter test or calibration fee. 57 of the 124 utilities (or 46.0%) charge a fee ranging from $25.00 to $250.00, as shown below:
Four additional utilities charge the actual cost of having the meter tested.
Meter tampering fees
86 of the 124 utilities (or 69.4%) charge a meter tampering fee. 21 utilities charge the actual cost of repairs or cost plus an administrative fee. Two additional utilities recover their costs through the judicial system. Four utilities have an escalating fee that increases with each meter tampering offense. The remaining 59 utilities charge a flat fee ranging from $25.00 to $2,000.00, as shown below:
This graph shows the fee per offense charged by the four utilities that charge an escalating fee:
Return trip fees
For the first time this year, the Utility Fee Survey asked if utilities charge a fee for a return trip. This most commonly happens when turning a meter on and the meter indicates water is running, but no one is home. 22 of the 148 utilities (representing 14.9%) charge a return trip fee ranging from $5.00 to $60.00, as shown below:
Convenience fees
Of the 124 utilities responding to the survey, 120 (or 96.8%) accept credit cards. This is also the highest of any Utility Fee Survey since the first survey was conducted. Credit card acceptance has become standard practice for most utilities.
Of the 120 that do accept credit cards, 92 (or 76.7%) charge a convenience fee as shown below:
Below is a graphic depicting which methods of credit card payments are assessed convenience fees:
The survey also asked if the convenience fee is charged by the utility or by a third party. Of the 92 utilities that charge a convenience fee, 81 (or 88.0%) are charged by a third party, as shown below:
The convenience fees charged by these utilities vary significantly in how they are assessed, making them difficult to graph, so they are presented here in a table.
Does your fee schedule need reviewing?
If you think your fee schedule needs to be updated, please give me a call at 919-673-4050 or e-mail me at gary@utilityinformationpipeline.com to learn how fee review could help.