My last three blog posts have reported the results of the 2025 Utility Fee Survey. I conduct the Utility Fee Survey every other year in odd-numbered years, and have done so since 2015.

One of the things I enjoy about these surveys is attempting to analyze and make sense of the data, especially when viewed in terms of trends covering multiple years.

This year’s trends included good news and bad news, in my opinion. Because I like to think of myself as an optimist, let’s start with the good news.

Credit card acceptance

In what might be the only statistic from the six years of Utility Fee Surveys that has increased each year, credit card acceptance has become almost universal. This year, 96.8% of the responding utilities accept credit cards, as shown below (clicking on any of the graphics will open a larger image in a new window):

Application fees

If you’ve heard me speak about fees at a utility conference, you know there are two points I emphasize as takeaways from my presentation. They are: charging an application fee and charging the cut-off fee to all accounts when the cut-off list leaves the office (more about that in a minute). I’m pleased to report that charging an application fee increased again this year to 60.5%, which is the highest rate reported in all six Utility Fee Surveys, as shown below:

Now, for the bad news…

Charging the cut-off fee to all accounts

As I mentioned above, I am a strong advocate for charging the cut-off fee to all accounts when the cut-off list leaves the office. Disappointingly, that percentage dropped this year, after increasing for the past two Utility Fee Surveys, as shown below:

Hybrid late fees

Another thing I advocate for is charging a hybrid late fee, rather than just a percentage or a flat amount. A hybrid late fee, which is a percentage with a minimum amount, allows you to ensure that your larger customers pay a sufficient late fee, based on the percentage. In comparison, your smaller customers pay a minimum late fee, based on the minimum amount.

For the second survey in a row, the percentage of utilities charging a hybrid late fee decreased, as shown below:

Is your fee schedule up-to-date?

Is your fee schedule up to date, and are you charging all the fees you could be? If it’s not, or if you’re unsure, please call me at 919-673-4050 or email me at gary@utilityinformationpipeline.com to learn how a business review could benefit you.

© 2025 Gary Sanders