|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 caused.
Some residential customers have been billed through the Power Stat meter system that requires payment in advance for electric service. 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. Management of the electric utility was taken over by TDX Power effective December 1, 2008 so it is unclear how billing for water and sewer will be conducted going forward.
There are a number of commercial and industrial users, however, that were 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 was not followed. Now that the city no longer operates the electric utility, it is unclear whether the old electric utility debt will be collected.