RCA REQUIRES CHUGACH ELECTRIC TO DELAY IMPLEMENTATION
OF CREDIT CARD TRANSACTION FEE PENDING INVESTIGATION
The
Regulatory Commission of Alaska (RCA) opened a formal docket of
investigation into the decision of Chugach Electric Association (Chugach Electric)
regarding its credit card payment program. In Order U-08-105(1), the RCA
required Chugach Electric to delay implementation of any change to its existing
Autopay by credit card program pending RCA review.
In June 2008, Chugach Electric announced to its customers that starting
September 1, 2008, it would no longer accept credit or debit card payments
directly. Instead, members may choose to make credit card payments through
Bill Matrix and pay a $3.50 transaction fee. Chugach Electric stated that it pays
over $800,000 per year to take credit card payments. Shortly after its
announcement, the RCA received informal complaints from customers opposing
the credit card transaction fee.
The RCA has authority to investigate this matter under AS 42.05.391 to
determine: (1) whether the charges are discriminatory; (2) whether the program
and attendant charges are reasonable, and (3) whether there is any adverse
effect in rates in light of the established revenue requirement. The RCA has not
received any tariff advice filing from Chugach Electric reflecting the proposed
changes to its tariff. In the absence of a tariff advice filing which would provide
Chugach Electric an opportunity to submit evidence in support of its proposed
change in policy and the past practice of accepting credit card payments, the
RCA is investigating this matter to address issues raised by consumer
complaints.
As part of the investigation, Chugach Electric is required to file documentation of
the expenses incurred on an annual basis since 2004 in connection with its
Autopay credit card program and a detailed explanation how its revenue
requirement will be affected by the proposed changes in its credit card policy.
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U08105_1
Date Issued: 8/29/2008