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Archive for Saturday, January 19, 2002

Utility to drop in-office payments in cost-cutting move

January 19, 2002

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Kansas Public Service soon will stop accepting walk-in payments at its Lawrence office, a move the utility says will save the company money on administrative costs.

But it also will cost Doris Stine. Beginning March 15, she'll have to buy a 34-cent stamp to mail each payment, or else sign on for online bill payments or other services that can cost up to $3.95 a shot.

The self-employed installer of floor coverings isn't happy that her natural gas company is turning up the corporate cost-cutting heat.

"The whole concept of having to pay for customer service is screwy," said Stine, who paid her bill Friday afternoon at the office, 110 E. Ninth St. "It isn't right. If I got into somebody's house and charged you extra to be nice to you, I wouldn't be in business very long."

But KPS' decision to drop walk-in service at its offices in Kansas is a simple business decision, company officials said, and ultimately will save customers money, too.

With relatively few customers opting to pay in person only 18 percent paid inside the Lawrence office last year the cost per transaction is rising, said Larissa Long, a KPS spokeswoman.

Such personal transactions cost the company $1.50 to process, she said, compared with 58 cents for a third-party payment, 11 cents by mail or 7 cents through a direct-payment system through a customer's bank.

Administrative costs ultimately are passed along to KPS' 30,000 Lawrence customers and others in UtiliCorp's other utility units.

"It's a business decision," said Long, who works in the Lawrence office. "Obviously, the more technology we're able to use, the less expensive it becomes. And that's where the benefit is: It will benefit all customers."

KPS is not alone in turning to technology to trim handling costs. In Lawrence, KPL the electric company no longer accepts walk-in payments at its building at 333 W. Ninth St.

The city of Lawrence welcomes payments for water and sewer service at City Hall, but encourages customers to use Auto Bill Pay, which automatically deducts payments from a customer's checking account.

To help customers adjust, KPS will be using monthly bills to inform customers of alternative payment options.

A new online bill-paying service, for example, will be launched in February at www.energyone.com. Customers will be able to pay their bills at the click of a computer mouse; the service will cost $3.95 per transaction.

"Obviously it's a change, and we certainly recognize that, but it's our intent to provide as many options as possible," Long said. "And, of course, technology allows that."

Even those sticking to cash won't be left out in the cold, Long said. The company is working to find a third-party paystation, such as a Western Union outlet, to accept cash payments in Lawrence on behalf of KPS.

Only 3 percent of payments received last year in the Lawrence office were made in cash, Long said.

Stine knows she had a hand in some of them.

"Normally I mail it, but I like to drop by when I'm in the neighborhood," she said. "Not anymore, I guess."

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