RICHMOND — The State Corporation Commission (SCC) has modified the Commission’s rules governing late payment and bad check charges for local telephone companies. The revised rules take effect December 1, 2008.

Changes to the existing rules were sought by the Virginia Telecommunications Industry Association (VTIA).

The revised rules permit a telephone company to charge up to $30 any time a check used to pay a customer’s account is dishonored by the bank. The previous general limit was set by rule more than 30 years ago. Most companies have been charging more after obtaining a waiver of that rule in various Commission proceedings.

For paying a bill after the due date, the SCC allows telephone companies to charge a fee of 1.5 percent of the unpaid charges. This is the same late payment fee limitation that has been in place for other regulated utilities, including electric and natural gas.

The VTIA was seeking permission to charge either the 1.5 percent fee or a flat fee of $5 on residential customers and $20 on business customers. Based on the information provided in this case, the Commission was unable to find that the alternative flat fee is warranted at this time.

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Case Number PUC-2008-00054