2025 Utility Fee Survey Results - Utility Information Pipeline

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:

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:

Number of responses by state

Size of participating utilities

Size of participating utilities under 20,000 accounts

Types of utilities responding

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):

Bar chart titled 'Residential Water Tap Fees,' showing fees charged by responding utilities sorted from lowest to highest, ranging from $25 to $25,754, with the vast majority under $7,000 and one large outlier at the top end.

Because the one very large tap fee distorts the smaller tap fees, here is a graph of tap fees under $7,000.00:

Bar chart titled 'Residential Water Tap Fees under $7,000,' showing a closer view of the fees excluding the largest outlier, sorted from lowest to highest and ranging from near $0 to about $6,750.

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:

Bar chart titled 'Residential Sewer Tap Fees,' showing fees charged by responding utilities sorted from lowest to highest, ranging from $50 to $10,000, with most utilities under $2,000 and a small number of high outliers at the top end.

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:

Bar chart titled 'Residential Water Impact Fees,' showing fees charged by responding utilities sorted from lowest to highest, ranging from $200 to $8,960.

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:

Bar chart titled 'Residential Sewer Impact Fees,' showing fees charged by responding utilities sorted from lowest to highest, ranging from about $250 to $6,600.

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):

Bar chart titled 'Type of Late Fee Charged,' showing 77 utilities charging a percentage, 34 charging a flat amount, 6 charging a percentage with a minimum, 4 charging a base amount plus a percentage, and 3 charging no late fee.

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:

Bar chart titled 'Late Fees (Percentage),' showing late fee percentages charged by responding utilities sorted from lowest to highest, ranging from 1% to 25%, with 10% the most common rate by a wide margin.

Late fees range from $5.00 to $60.00 for utilities charging a flat amount. This graph illustrates the late fee flat amounts:

Bar chart titled 'Late Fees (Flat Amount),' showing flat late fees charged by responding utilities sorted from lowest to highest, ranging from $5 to $60.

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:

Bar chart titled 'Late Fees (Percentage with Minimum),' showing paired percentage and minimum-dollar-amount bars for each of the six utilities charging this hybrid fee, with percentages ranging from about 1% to 5% and minimums ranging from $5 to $10.

Four utilities charge a base amount plus a percentage, as shown below:

Bar chart titled 'Late Fees (Base Amount plus Percentage),' showing paired base-amount and percentage bars for each of the four utilities charging this hybrid fee, with base amounts around $1 to $1.50 and percentages around 3%.

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):

Late Fee or Penalty Notification Methods
Bar chart titled 'Late Fee or Penalty Notification Methods,' showing 68 utilities that don't notify customers, 44 that mail a late notice, 21 that send an email, 12 that call using an IVR system, 11 that send a text message, and 3 where a customer service representative calls.

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:

Bar chart titled 'Cut-Off or Reconnect Fees,' showing fees charged by responding utilities sorted from lowest to highest, ranging from $15 to $225, with most utilities clustered between $25 and $100.

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:

Pie chart titled 'Cut-Off Fee Charged to All Accounts?' showing 84 utilities charging the fee immediately to all accounts, 34 that do not, and 6 that don't cut off for non-payment at all.

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.

Table titled 'Terminology' listing the exact term each utility uses for its cut-off fee and how many utilities use it. Top terms: Reconnect Fee (36), Non-Payment Fee (14), Delinquent Fee (11), Cut-Off Fee (6), Service Charge (4), Shut-Off Fee (4), Cut-Off Fee/Reconnect Fee (3), Disconnect Fee (3), Non-Payment Penalty (3), Reconnection Fee (3). Remaining terms are used by 1 or 2 utilities each, including Delinquent Service Fee, Disconnect Fee/Reconnect Fee, Turn Off Fee/Turn On Fee, Account Suspension Fee, Administrative Fee, Administrative Service Charge, Administrative/Reconnection Fee, Cut-Off Fee/Reinstate Fee, Delinquency Fee, Disconnection Charge, Late Penalty Fee, Lock Fee/Reconnect Fee, Processing Fee, Reconnection Charge, Reset Fee, Restore Delinquent Service Fee, Second Penalty, Service Disruption Fee, Service Restoration Fee, Subject to Disconnection Fee, Suspension Fee, Suspension Fee/Reconnect Fee, Trip Fee, Water and Sewer Disconnect Fee, Water Termination Fee, and Water Turn On Fee.

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):

Bar chart titled 'Pending Cut-Off Notification Methods,' showing 48 utilities that mail a late notice including the cut-off date, 43 that call using an IVR system, 32 that don't notify customers, 32 that send an email, 23 that send a text message, 14 where a customer service representative calls, and 14 that mail a separate cut-off notice.

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):

Bar chart titled 'Cut-Off for Non-Payment Notification Methods,' showing 77 utilities that don't notify customers, 38 that leave a door hanger, 8 that call using an IVR system, 8 that mail a notice, 8 that send an email, 4 where a customer service representative calls, and 4 that send a text message.

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.

Pie chart titled 'Offer After Hours Reconnection?' showing 72 utilities that don't reconnect after hours, 37 that will reconnect anytime after hours, and 9 that reconnect only during select times.

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:

Grid chart titled 'After Hours Reconnect Times,' showing which utilities offer after-hours reconnection during each half-hour window from 4:00 pm to 10:00 pm. Availability is highest in the 5:00 to 7:00 pm range and narrows toward 10:00 pm, with a few utilities offering reconnection as early as 4:00 pm.

After-hours reconnect fee amounts range from $25.00 to $250.00, as shown by the following graph:

Bar chart titled 'After Hours Reconnect Fees,' showing fees charged by responding utilities sorted from lowest to highest, ranging from $25 to $250, with most utilities between $50 and $100.

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.

Pie chart titled 'Charge Maximum Allowable Returned Check Fee?' showing 65 utilities charging less than their state maximum, 41 charging the maximum allowed by state law, and 18 charging more than the state maximum.

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:

Bar chart titled 'Application Fees of $250 or Less,' showing a closer view of application fees excluding the largest outliers, sorted from lowest to highest and ranging from about $5 to $250.

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:

Grouped bar chart titled 'Meter Tampering Fees (Variable by Offense),' showing first, second, and third offense fees for the four utilities with escalating tampering fees. First offense fees range from $100 to $250, with second and third offense fees rising as high as $500.

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:

Pie chart titled 'Do You Charge a Convenience Fee?' showing 92 utilities charging a convenience fee and 28 that do not.

Below is a graphic depicting which methods of credit card payments are assessed convenience fees:

Bar chart titled 'Types of Payments Assessed a Convenience Fee,' showing 89 utilities assessing the fee on online payments, 73 on phone payments, and 67 on in-office payments.

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:

Pie chart titled 'Who Charges the Convenience Fee?' showing 81 utilities where a third party charges the convenience fee and 11 where the utility charges it directly.

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.