Authorizations made by Board to assist FES with debt recovery

Members of the Fulton Electric System Board authorized actions Monday night, as recommended by Business Office Manager Jeff Wade and Superintendent Luke Craddock, which could assist FES in bad debt recovery.

Wade first presented information to board members Milton Dean, James Butts, Jeff Vaughn, Beth McWhirt and Peggy Lohaus, regarding the minimum required monetary figure which may be paid by customers who utilize the prepay method, to pay for service.

Wade said currently, customers may pay $5 minimum for service, which Wade said could be the approximate cost for one day’s electricity. Wade suggested increasing the minimum payment on prepay to $20.

Additionally, the board approved charging a $10 reconnect fee for prepay customers, in the event their electricity is cut off resulting from nonpayment.

Security light connections and disconnections will now cost customers $30, as Craddock noted that work order requires linemen to go to the location of the security light pole, and use the bucket truck or climb the pole. Prior to the action taken through the board’s approval Monday night, there was no charge to connect or disconnect the security light.

Fulton Electric System customers will soon be able to take advantage of “levelized” billing, as the board authorized the service Monday night, whereby any FES customer, who has been a customer for 12 months may arrange to be billed the same amount for service each month based on the previous 12 month average. Then, on the 12th month of the levelized billing, customers may pay more or less, to equal the actual usage.

Board member James Butts said the service would allow citizens the ability to budget more accurately, with Wade noting it would be an asset to retirees or those on a fixed income.

Craddock updated the board about his research as to purchasing a pickup truck for FES, with both Craddock and Jacob Davidson in agreement to recommend the purchase of a Ford F150, four wheel drive, crew cab pickup from Purchase Ford of Mayfield, in the amount of $31,795. The board approved the recommendation.

Another item in regard to improving bad debt recovery, according to Wade, was his suggestion to increase the deposit amount for residential customers, with specific deposit figures variable based on the customer’s credit score.

The maximum deposit, Wade said, is now at $260, with his recommendation to increase that figure to $300 maximum.

Wade said customers are allowed two extensions per year, and if taken, it could result in a loss of two months of revenue if the customer did not catch up prior to leaving the service.

When asked by board member Jeff Vaughn, Wade responded that customers could pay half that deposit amount, up front, and the remainder within 30 days, when signing up for service.

Vaughn voiced concerns as to the city’s perceived inability to entice families to locate in Fulton, in light of increases in FES service costs, and Wade said he is in the process of researching options through Tennessee Valley Authority which could provide incentives to entice residents to locate in Fulton.

A transfer from the revolving fund to the operations and maintenance fund was approved in the amount of $559,594.21, which included a payment of the power bill, $426,789.32, payroll, in the amount of $50,000, board salary, $800, board attorney Rebecca Biehslich, $400, Fulton City Board of Education, $15,813.37 and Fulton County Board of Education, $604.34.

A motion was made to adjourn from open public session into closed executive session pursuant to Kentucky Revised Statute 61-810 sections, B, C, to deliberate the acquisition of property, industrial prospect, litigation and personnel, and as a result approved the purchase of property in the city of Fulton from Garrett Adams, in the amount of $12,000, pending the examination of the title by board attorney Rebecca Biehslich.