"You don't achieve harmony by everyone singing the same note" - Doug Loyd

Tuesday, May 10, 2011

Answers from SRP

Here is the answers I got from SRP explaining what the Competitive Customer Service Charge.

"Regarding the Competitive Customer Service Charge, SRP collects a portion of the cost through the fixed monthly service charge and the remainder through the variable per kWh charge.  SRP needs to recover the total cost of providing customer service, and to keep the fixed monthly service charge reasonable, we have opted to collect a portion of those cost through the variable charge."

Basically, we are being charged for the wages paid to the customer service reps.  This we pretty much knew, but why is it competitive and not just customer service?  I got no response on if we are paying taxes on these administrative services which are not taxable.  Yet are included in the monthly service fee and the per KWH rates.



If they need to recover the total cost of customer service wages the amount charged to our bill should be a fixed rate not a per KWH rate.   Basically, they need to pay their customer service reps a fixed salary and not an hourly wage.  Not to mention salary is smarter because you know exactly what payroll is going to be every time you run it.  Making a fixed rate easier and constant.  Since charging a rate per KWH will cause you to either collect more or less than the actual amount of wages paid.  If you have to recover the total amount and nothing more then the honest way to do it is a fixed rate that fluctuates slightly due to employee turn over.

This also raises the issue of payroll taxes.  Don't you think they should be forking over payroll taxes on what they collected from consumers in wage reimbursements and not what they paid out?  I'd be willing to bet they collect more from consumers than they pay out.  

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