[Watchdogs] Recommendations to Reduce Bad Debt, Eddie Dauterive, Report of November 12, 2009
langston at zeecon.com
Thu Feb 18 00:19:16 CST 2010
Renee, I would ask you to send a copy of this letter to each of the Directors and to Mr. Dauterive.
Dear Mr. Dauterive, Paul Hilgers and Juan Garza:
Eddie notes that PEC has been having serious delinquency rates and uncollectible debt for some time now, about $2.5 - $3.0 million annually. Eddie does not say how many years this loss has been going on nor does Eddie note that the complaints[
that brought on this study have come from PEC Owner-Members.
Eddie says that Cooperative wide guidelines and standards for fee adjustment, delinquencency exceptions and deferred agreements will be established. Dauterive has produced a valid plan to collect some of these large uncollected debts.
Eddie's plan seems good and I would add, about "darn" time. No doubt, PEC is going to recover some serious money when he gets his plan up and running in 2010 or maybe in 2011.
However, I have read over the plan submitted by Mr. Dauterive, carefully, several times and I find a serious lack of attention for one of the specific assignments given to him by PEC Management.
The point has been laid out not once but on several instances that the Bad Debt Collections must not work too hard on the "Old Friends of PEC". These "Old Friends" are customers of many years who may have trouble paying their monthly bills. These "Old Friends" must be carefully considered and aided so as not to cause them too many hardships.
No where in Eddie's plans to eliminate bad collections does he mention these "Old Friends" nor how to handle their needs. The appearance is that PEC Management has not given the specifics of these "Old Friends" to Mr. Dauterive, like, how many there are and how to tell them apart from the regular paying customers.
In the third paragraph of Eddies' Nov. 12, 2009 report, some mention is made of "guidelines and standards for fee adjustments, delinquency exceptions and deferred agreements" so that the staff can make proper implantation. Are these the bare outlines of how the accounts of the "Old Friends" will be handled?
I am heartened by the second paragraph of Mr. Dauterive's report of Nov. 12, 2009, where he states, "Cooperative-wide policy and procedures will ensure we treat all members fairly and equitably".
So, good luck, Eddie! After 50 or 60 years, the idea of collecting delinquent accounts for the electric service sounds truly innovative.
Hollis P. Langston
404 Westward Ho
Horseshoe Bay, Tx. 78657 830-598-1322 langston at zeecon.com
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