HomeMy WebLinkAbout14 District Collection Process Agenda Item # 14
TRUCKEE DONNE.
WORKSHOP
To: Board of Directors
From: Mary Chapman
Date: March 04, 2009
Subject: Review of the District Collection Process
1. WHY THIS MATTER IS BEFORE THE BOARD
This item is a review of the District's collection process and a discussion of possible
assistance to low income customers through the public benefits program.
2. HISTORY
The District has a disciplined collection procedure. As a result, historically our write-
offs have been very low. However, we are seeing an increase in the number of
customers who are having difficulty paying their bills in a timely manner. Due to the
current economic conditions, we are expecting the write-offs to continue to be higher
than what we are used to seeing. Attachment 1 is a summary of the billing and
collection timeline taken from Titles 5.08 and 5.12 of the District code.
3. NEW INFORMATION
The current economic conditions are having an impact on customers who do not
normally receive disconnect notices. Given the circumstances, we thought it would be
appropriate to have a discussion with the Board and present some suggestions on
how we could help our customers who are having difficulty paying their utility bill. At
the same time, we would be able to help these customers identify energy saving
opportunities and provide them with the material to help accomplish the savings.
We have identified three proposed changes to our operating procedures which will
assist customers to control their energy use, ease their payment schedule and reduce
future energy usage by implementing conservation measures.
Implement Pay-As-You-Go metering - chronically delinquent customers or
customers who elect to participate would be moved to a prepaid electric meter;
no electric deposits are required, no electric late charges are assessed and
customers will be able to better manage their energy usage
Extend the time to amortize a customer's past due balance from 12 months up
to 24 months
Implement a low income energy conservation program that provides
conservation measures and a voucher to apply toward utility bills for
participating low income customers (Attachment 2)
4. FISCAL IMPACT
We are investigating Pay-As-You-Go electric metering systems. The cost is
unknown at this time. The system that we recommend to the Board will have
the lowest overall footprint for cost and program efficiency.
We are expecting the fiscal impact of extending the amortization of delinquent
balances up to 24 months to be relatively low.
Public Benefits funds can be used for low income assistance. The proposed
program would be funded at a level of approximately $40,000 plus funds for
administrative expenses.
5. RECOMMENDATION
Review this report and provide comment.
Michael D. Holley
Mary Chap n
Administrative Services Manager General Manager
ATTACHMENT 1
Taken from Title 5—Chapters 5.08 and 5.12
The following time schedule describes the timing from billing an account through the
disconnect for non-payment
Days Action
1 Bill is rendered
20 Bill is due 19 days after the day bills are mailed.
When a new bill is issued with a previous balance, customer is charged a late payment
fee(approximately 31 days).
34 Termination for Non-Payment (Late Payment Reminder Notice) is issued — printed 3
business days after bill is printed with a previous balance — mailed at least 15 calendar
days prior to the scheduled date of termination.
e on the
50 Final Notice of Termination of Service — if notice is mailed. ment is not made Additionally, the y the final District tDistrict shall make
15 day notice, a 48 hour a
reasonable, good faith effort to contact an adult person residing at the premises of the
customer by telephone or personal contact, at least 48 hours prior to any termination of
service except that whenever telephone or personal contact cannot be accomplished, the
District shall post in a conspicuous location at the premises, a Final Notice of
Termination of Service, at least 48 hours prior to termination.
of a
or
52 If the customer does not make a payment, notify the District by thle trict of a last day for theepaymentl,the
make other arrangements acceptable to theD
District will proceed on schedule with the termination.
With weekends and holidays,this process usually takes approximately 60 days. At this point,the
customer has an additional month of energy and water usage for a total of 3 billings.
Accommodation for customers over 65 years of age or who are considered dependent
adults:
The District will make available to its residential customers who are 65 years of age or older, or
who are dependent adults as defined in paragraph (1) of subdivision (b) of section 15610 of the
California Welfare and Institutions Code, a third party notification service whereby the District
will attempt, to notify a person designated by the customer to receive notification when the
customer's account is past due and subject to termination.
ATTACHMENT 2
ENERGY CONSERVATION INCENTIVE PROGRAM:
OBJECTIVE:
AB1890 set up the Public Benefits Fund and allows for a portion of the funds
to be used for low income purposes. The objective is to identify a method to
assist low income customers while increasing energy conservation and
efficiency in that market component.
CONCEPT:
Team with local non-profits to provide an electric energy voucher to low
income customers for their participation in an energy conservation survey and
implementation of energy saving measures within their home. These
measures would be provided by the District's conservation programs.
PARAMETERS:
• Must meet low income test or be previously approved by another utility
low income program (gas or phone company)
• Customer would participate in energy use survey to identify ways to
increase their energy conservation opportunities
• District would provide conservation measures such as light bulbs, low
flow shower heads, etc
• Program would work in conjunction with other community resources
(Nevada County LI-HEAP program, Salvation Army, Family Resource
Center)
• $40,000 in cost - $100 to $200 per customer in electric energy
payment assistance
• Must be fulitime residential electric customer of TDPUD
• One voucher per year
IMPLEMENTATION:
• Identify non-profit agencies to assist in program implementation
• Work with non-profit agencies to develop a brochure and flier providing
program details to customers
• Provide low income customers who can't make their electric payments
with:
• Refer customers to non-profit agency to qualify for low income
program
Perform an energy survey
Implement measures
Issue payment voucher