PENNSYLVANIA PUBLIC UTILITY COMMISSION
P.O. BOX 3265, HARRISBURG, PA 17105-3265
PRESS RELEASE
Date: May 27, 2004
Contact: Eric Levis, Press Secretary
(717) 787-5722 or
PUC Initiates Proceeding to Examine Impact of CashPoint on Consumers, Utilities
HARRISBURG -- The Public Utility Commission (PUC) today voted unanimously to initiate a proceeding to examine the impact of CashPoint Network Services Inc. on Pennsylvania utility customers and major utilities.
CashPoint, which has filed for bankruptcy in New York State, is a bill processor that had been collecting money from consumers and then forwarding that money to utilities and other businesses throughout Pennsylvania and several other states. CashPoint provided that service through numerous supermarkets, grocery stores and other business locations around the Commonwealth.
“Recent reports estimate that customers of Pennsylvania’s jurisdictional fixed utilities may have paid CashPoint between $20 million and $25 million which were never ultimately submitted to the utilities to be applied to the customers’ accounts,” said Commissioner Wendell F. Holland in his motion today. “I am concerned about the health, safety and welfare of unsuspecting customers whose payments may not have been transmitted by CashPoint and who now may be unknowingly subject to termination or collection actions by utilities.”
This proceeding requires all major jurisdictional fixed utilities that had an arrangement with CashPoint to file information regarding the arrangement as well as the number of customers and total payments that have been affected by CashPoint’s action or inaction. Additionally, it will be necessary for those jurisdictional fixed utilities that had no agreement with CashPoint, but the utility company knowingly or unknowingly received customer payments for utility service from CashPoint to file information regarding the number of customers and total payments that have been affected by CashPoint’s action or inaction.
Utilities are directed to provide the following information within 20 days from the official entry of today’s order:
1) The type of relationship or arrangement, if any, the utility had with CashPoint in Pennsylvania;
2) Whether the utility has filed or intends to file as a creditor in the CashPoint bankruptcy proceeding;
3) Identify all other entities, vendors or third parties that the utility has a record of receiving payments from that were not authorized by the utility to process. Also, indicate the duration of time your company received such payments and provide copies of any documents or records of any communications with these unauthorized vendors;
4) If the utility utilized the service of CashPoint as an authorized payment collection vendor, or if the company received payments from CashPoint as a result of a payment made as an authorized payment vendor, provide an estimate of the number of customers affected and the dollar amount that the company believes it has lost as a result of CashPoint failing to forward customer payments to your company;
5) Describe the processing of payments received via CashPoint (whether authorized or unauthorized) and how information concerning the customer’s payment was provided to the company. Also include information about any intermediaries in the process (i.e., banks); and
6) Describe the company processes before and after April 23, 2004, to educate and notify customers about payment vendors authorized to accept utility service payments for each company.
On May 12, Consumer Advocate Sonny Popowsky and the Commission’s Bureau of Consumer Services urged utility consumers who have recently paid their utility bills through a third party to hold on to their receipts, carefully check their next utility bill, and contact their utility if they have any problem receiving full credit for their prior bill payments. If they are unable to resolve the matter with the utility, they should immediately contact the PUC's Bureau of Consumer Servicesat 1-800-782-1110.
The mission of the Pennsylvania Public Utility Commission is to ensure safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.
Docket No. M-00041805
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