TRAVERSE CITY -- Area charities are getting some financial help this holiday season, and they have late utility payments to thank for the donation.
Traverse City Light and Power will distribute $22,940 equally among the Father Fred Foundation, Love INC, the Salvation Army and the Northwest Michigan Human Services Agency. This distribution was unanimously approved by the L&P board at their November 29 meeting and authorized by the city commission at their December 19 meeting.
The funds are derived from L&P's "red tag" warning program which provides notice to customers of possible service termination. The red tag program results in a fee being charged to those customers who are facing the final step to collect an overdue bill after two previously mailed notices have not been responded to by those customers.
"As the board has approved for many years, Light and Power is distributing these monies to agencies that regularly help local citizens facing shut-off of their electric service due to non-payment of their utility bill," said Ed Rice, L&P executive director. "We know that the need for assistance is greater than ever and are confident the money will be well spent."
Since 1996, when L&P implemented the red tag fee, L&P has distributed over $163,974 to area agencies.
One of the reasons the red tag fee was instituted was to discourage the practice by some customers of not paying their bill until someone from the utility showed up at their door to collect. L&P has employees who work to assist customers with payment options in order to make it easier for them to pay their monthly utility bill.
If an L&P customer is experiencing difficulties paying their utility bill they are asked to contact the Utility Accounting department at 231-922-4431 to make payment arrangements.
