The extension is used after it has already fallen into the second month of delinquency. You can use up to 9 days of extension without being cut off, but remember, you're already into your second month of delinquency so since you don't pay interest, this is one way to make up lost funds, or funds that Dish paid for you, but was not paid for. They are not the only ones that charge a fee for an extension. It used to be free, but it use to be heavily abused. As you said, now you don't want to pay late anymore because now it costs more money.