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New River stops flagging
student accounts
20-year practice by local power provider ended
Thursday |
Hugh Kellenberger
Chancellor | Student Development Beat
Adam Bennett
Editor-in Chief
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Jacque Lenz | The AppalachianSenior clothing and textiles major
Erin P. Dorney from Raleigh reads a brochure from New River Light
and Power Monday explaining the now-old practice of flagging delinquent
students’ university accounts to encourage payment. The over
20-year practice ended Thursday morning.
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A 20-year
practice by New River Light and Power Company, flagging university
accounts of students’ delinquent in paying the company, was
halted Thursday morning, Rick C. Presnell, university controller
said Friday.
“As of Thursday, we have discontinued the practice of flagging
student accounts,” Presnell said.
New River, owned by Appalachian State University, has flagged
180 student university accounts in the past year that were 120 days
delinquent in their payments to the power company. A flagged student
account renders it inactive until the student pays the outstanding
power bill.
If a flag is on a student’s account, they are unable to
register, Presnell said.
New River is a non-profit subsidiary of Appalachian State. Profits
are turned over to an endowment fund at the university, Presnell
said. The company buys electricity from Blue Ridge Electric Membership
Corporation and resells that power to 7,800 units in local homes
and businesses in Boone.
Student Government Association senator Patrick G. Cash recently
wrote legislation addressing the issue of flagged student accounts
for neglected payments to the local power provider. |
Jacque Lenz | The AppalachianElaine Moody, employee of New
River Light and Power helps student consumers with their account
in the power provider’s office Monday.
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A student in Cash’s
constituency, who signed Cash’s senator petition, informed
him of the electric company’s practice.
“It seemed crystal clear to write the legislation after
that,” Cash said Friday.
New River told The Appalachian that flagging student accounts
due to delinquent bills was explained in the customer’s contract.
“To say they’re not aware is a sign of their negligence,”
New River Light and Power General Manager Don Austin said last Tuesday.
“Since they are ASU students, I am fairly sure they can read.”
New River’s change in policy Thursday came after The Appalachian
contacted the state Utilities Commission to seek clarification of
state law concerning the policy of flagging student accounts, which
power company officials said was explained in the student customer’s
contract. New River’s Elaine Moody later said the company did
not have a written contract for new customers.
A brochure explaining the practice is available at the New River
customer desk.
The N.C. Utilities Commission confirmed the practice was a possible
violation of current law.
“We investigated the matter and it appears the practice
[of flagging university accounts] could well be in violation of
statute and commission rules,” said Lucy Edmondson, public
staff attorney with the N.C. Utilities Commission Thursday.
New River has been placing flags on student accounts at the
university for at least 20 years after a student becomes 120 days
delinquent in paying their power bill, Austin said.
Austin compared New River’s flagging of student accounts
as similar to the bookstore or library placing a flag on a student’s
account.
After payment is two months delinquent, a cut-off notice is
sent to the student warning that power will be disconnected if payment
is not received by the next pay period.
If the customer was inactive and had not paid the final bill,
New River would send out a remainder bill and then flag his or her
account, administrative assistant for New River Tonya T. Wood said
Friday.
New River removed the flag when the outstanding bill was paid
in full, Wood said. Previously, New River had the power to flag
the account from their offices, but that has changed.
“They should not have any reason to have that access now,”
Presnell said. |
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