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In hard economic times that many people are now experiencing, not everyone realizes that their power company is also going through some of the same problems.

Karen Ryan, who is the manager of public relations for Lee County Electric Cooperative (LCEC), which is based in North Fort Myers, said the utility is sending out an article in its news letter in January to explain that “business is not as usual” as it has been in the past.

Ryan said LCEC has gone through a “rigorous annual budgeting process” across the organization with every line item being examined closely to identify areas where operating and maintenance expenses could be reduced and capital projects could be deferred to address the worsening economic conditions.

In fact, LCEC’s Chief Executive Officer Dennis Hamilton said business for LCEC “is not as usual.“

In the article he said the utility is feeling the hard economic times along with its customers.

“Increased costs for materials, equipment and services along with rising bill delinquency are taking their toll,“he said. “But LCEC is doing everything possible to mitigate these costs to customers.“

Ryan said since more than 70 percent of the customer’s bill is related to rising power costs, it is critical for LCEC to continue to maintain internal controls on the part of the bill that they can manage.

In the news letter, Ryan wrote that the cost-cutting agenda for 2009 includes trimming employee headcount through attrition and some positions will remain vacant for as long as it takes without impacting service to customers.

Ryan told The Citizen that the utility’s writeoffs for last year, 2007, were $1.9 million.

“This year, we are projecting an increase – a write-off of about $2.1 million,” she said.

“We are trying to keep this number in line because if not controlled, increased un-collected bills would impact rates dramatically and increased rates mean that customers who are barely making it now will have an even more difficult time paying their bills.

In addition to reducing the number of employees through attrition, Ryan said more than 50 contract employees were released during this past year in response to slowed growth throughout the service area.

Ryan also noted that LCEC’s customer count has decreased by 3,684 since 2007. LCEC has approximately 193,000 customers throughout five counties in Southwest Florida.

She said the number of customers who are paying late every month has increased by about 18 percent over 2007. The decreased number of customers may be due to foreclosures and other economic problems. And the number of people who are late may reflect some of the same customers who get caught up and then are late again.

Ryan said LCEC works to make every effort possible to avoid having to disconnect customers for non-payment of their bills.

“We make three friendly reminder phone calls to their homes or business. And we send two friendly reminder notices to the billing address. These calls and letters explain that failure to pay will result in a disconnection and a possible deposit or additional deposit,” she said.

Each time a customer pays late or does not pay their bill, their payment history declines and once their LCEC credit rating declines to a certain point, a deposit is assessed to ensure that the cost for the electricity the customer has already used can be recovered.

“If people are having problems during these hard times, they should contact our call center to talk about payment options, personal circumstances and even get suggestions for assistance,” Ryan said.

While the economy may be taking its toll on Southwest Florida and other parts of the nation in this recession, some 84 percent of LCEC’s customers do pay their bills on time each month.

When asked if there are customers who go without electricity for periods of time, Ryan said she knew of a case in Cape Coral where the family used candles and did without power.

“What happened is that one night, they lost their house due to a fire caused by an unattended candle,” she said.

Ryan noted that LCEC provides electricity and does not charge customers until after they have used the service.

“In a sense, we offer them credit each month and bill them after the product is used, and we have incurred the cost of purchasing the power from our power supplier. Collecting from customers, for something thy have agreed to pay for, is just one way that we try to keep costs in line for all customers,” she said.

Ryan compared the process like a credit card company which may raise the interest rate to cover the risk of a customer who develops a history of paying late or missing a payment.

“LCEC may charge a customer a deposit to cover the risk of non-payment. Just as a credit card company will cancel your credit card if you miss too many payments, LCEC will disconnect service when bills are not paid.

“We can not continue to provide a service that incurs costs without covering the expense,” she said.

Some people steal electricity as dangerous as that may be.

“If that happens, our linemen on the road will easily see what has happened and disconnect the power from the homesite that is stealing power,” she said,

“But people should realize that you can die from stealing electricity. It’s a dangerous thing to do,” she said.

Those who are caught with meter tampering face a $200 fee plus a disconnect and reconnect fee of between $50 and $150 plus the entire outstanding balance due plus another potential additional deposit.

And you can be prosecuted by the law because stealing electricity causes the cost to be passed on to all other customers. And you can land yourself in jail.

She said that customers can go online at LCEC.net for important information if they need help.

But she noted there are some things customers can do if they are having a hard time paying their bills.

She provided a list that includes first seeking assistance from consumer credit counseling or another type of agency that provides information about balancing budgets. Research indicates that electricity is not at the top of the list of bills customers pay.

“It ranks sixth often even below cable TV but is considered an essential service,” Ryan said.

Determine if your electric bill is as low as it should be and conserve where you can.

Ryan said that LCEC offers free energy surveys and online energy calculators which provide no-cost or low cost tips to save on your bill every month.

“Determine if you are doing all that you can to lower your bill and reduce your payments. Again you can visit “http://www.lcec.net”>www.lcec.net on the Internet, she said.

Ryan also suggested seeking assistance from a human service or social service agency saying that United Way 211 is a good place to start.

In Lehigh Acres, some help may be available from Lehigh Community Services.

If there are no funds available for electric bill payments, perhaps there is assistance in another financial area that will allow for existing funds to be utilized for electricity.

In another words, those who have food stamps can obtain food and also get food from local food banks. Then any monies they can save can be used toward paying their utility bills.

Ryan noted that LCEC and its employees contribute thousands and thousands of dollars and volunteer hours year-round to several agencies so that they can do their part to help in this area.

Lastly, find a payment option that meets your needs. If a customer is not good at sitting down and writing checks every mont, they can pay by phone or have their bill automatically deducted from their bank account – this will avoid late costs and a potential additional deposit.

“We do want people to know that our hearts go out to customers who are having a difficult time and we understand the challenges that we face and we will continue to do our part to provide electricity at the lowest price possible and help in whatever way that we can,” Ryan said.