|The City of Adak has adopted a billing and collection policy, including provisions for disconnection of service for nonpayment. A substantial amount of customer debt overdue for greater than 90 days has been a problem and is largely responsible for the City's current overdue accounts payable balance and the fuel crisis it has caused.
Some residential customers are billed through the Power Stat meter system that requires payment in advance for electric service. Electric service is discontinued automatically by an electronic meter when prepaid credit is exhausted. Water, sewer, and landfill charges are also programmed into the system, effectively requiring prepayment for all residential utility services, and ensuring a high collection rate.
There are a number of commercial and industrial users, however, that are not using the Power Stat system, and that have large outstanding, greater than 90 day-old utility debt. Many of these accounts have stayed the same or increased since July, 2007, indicating that the collection policy is not being followed.