Qwest Customer Gets Help from CUB: Rural Utility Customers Should Watch Out for Franchise Fees

If you live outside of one of Oregon’s many cities or towns, in unincorporated territory, you may want to know about the experience of an Oregon utility consumer who recently contacted CUB. A man called CUB a few weeks ago and asked to speak with someone about a problem on his Qwest bill. He was connected with CUB Executive Director Bob Jenks and proceeded to tell his story.

He had noticed a franchise fee for the City of Hermiston on his Qwest telephone bill. Problem was, he didn’t live in Hermiston; he lived in Umatilla County outside the City of Hermiston. He contacted Qwest and the customer service representative he spoke with said that the company was allowed to charge him the fee because his telephone line went through the City of Hermiston. He contacted the City of Hermiston, and someone there told him, “No, we only charge that fee to houses within city limits.” He contacted the Public Utility Commission and a PUC employee said, “Sorry, but that’s not something that we’re in charge of overseeing.”

This poor man was getting the total runaround. Finally he called CUB.

Bob Jenks told the man that he was right, that Qwest should not be charging him the franchise fee, and that the PUC does regulate the collection of those fees and should have been able to help him. The man’s timing was good, because Bob took his concerns to a meeting already set up later that week with Qwest management and a PUC representative. Qwest agreed that they shouldn’t be charging the fee outside city limits, and agreed to refund the man what he had paid back quite some time. It’s not a large amount of money, but still satisfactory when you know you shouldn’t have to pay it.

This incident raises 2 issues for CUB:

1) A customer shouldn’t have to make half a dozen calls to get a correct answer and some help.

2) Utilities don’t always have good records of who lives within the city vs. outside it, and may well be charging city franchise fees to more than a few people who live outside Oregon cities.

That’s why we’re encouraging people who do live outside of city limits to check their phone, gas and electric bills to see if city franchise fees appear on them. If they do, and you think the fee is in error, pay your bill and then send it on to us. It’s possible this is an isolated problem that doesn’t arise often. It’s also possible that the problem is more systemic and should be addressed in official proceedings at the PUC.

And after all, that’s why we’re here.

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