Provo City recently changed the monthly customer service fee on power bills from $3 to $6. This has prompted questions about why we have the fee.
The customer service charge is designed to recover the distribution and billing-related costs, which include electrical distribution lines plus the cost of the meter servicing and reading, mailing the bills, and maintaining customer records. This charge will appear on the monthly bill even if the customer uses no energy during the billing period. Any costs recovered through the customer service charge reduce the energy rate ($/kWh) customers must pay for the electricity they use.
It’s a fee commonly charged by utilities, and the rate consultant that Provo used last year actually recommended a much higher fee than $6 per month.