HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 7/6/2021 - FIRST READING OF ORDINANCE NO. 091, 2021, AMENDING Agenda Item 18
Item # 18 Page 1
AGENDA ITEM SUMMARY July 6, 2021
City Council
STAFF
Jamie Gaskill, Sr. Supervisor, Project Management
Gretchen Stanford, Interim Deputy Director
Brian Tholl, Energy Services Supervisor
Lance Smith, Utilities Strategic Finance Direct or
Cyril Vidergar, Legal
SUBJECT
First Reading of Ordinance No. 091, 2021, Amending Chapter 26 of the Code of the City of Fort Collins
Related to Water, Wastewater and Electric Rates, Fees, and Charges Applied Under the Income -Qualified
Assistance Program.
EXECUTIVE SUMMARY
The purpose of this item is to consider a Code amendment to extend the Income -Qualified Assistance
Program (IQAP) pilot rate an additional year (through 202 2) and align it with the Fort Collins Utilities’ rate
ordinances that are considered in the fall. Additionally, this item considers Code amendments that would make
administrative modifications to the program’s enrollment process.
STAFF RECOMMENDATION
Staff recommends adoption of Ordinance on First Reading.
BACKGROUND / DISCUSSION
The Income-Qualified Assistance Program (IQAP) was approved by Council and launched in October 2018 in
conjunction with the Time-of-Day (TOD) electric rates. The pilot program was designed to reduce utility costs
for qualifying low-income participants that opt-in to the program by providing a 23% discount on specific rate
components of electric, water and wastewater services. The current pilot and associated discount are set to
expire July 31, 2021, pursuant to City Code §26-724. The Ordinance extends the program beginning August
1, 2021, through December 31, 2022.
Strategic Alignment
• Strategic Outcome
o Neighborhood Livability and Social Health 1.3 - Improve accessibility of City and community program
to low- and moderate-income residents and increase participation in service to eligible income-
qualified residents.
• Our Climate Future
o Equity-focused implementation seeking solutions that address a spectrum of needs within our
community.
o Next Move EEFB5: Provide focused energy efficiency and indoor air quality incentives for historically
under-served households.
The IQAP is one of five offerings in the Utilities Affordability Programs (UAP) portfolio that is designed to
reduce utilities burdens for low- and moderate-income customers. Utility burden is defined as the percentage
Agenda Item 18
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of a household’s income that is spent on utility services such as gas, electric, water, wastewater and
stormwater. Low-income households have been found to have disproportionately high uti lity burdens when
compared to non-low-income households (ACEEE, 2020; US Water Alliance, 2016).
The UAP includes programs that help reduce a customers’ utilities costs through payment assistance,
efficiency improvements to homes, and education about efficiency practices. There are three programs that
focus on payment assistance and two programs that help make dwellings more efficient.
• Payment Assistance:
o The IQAP provides income-qualified customers a reduced rate on specific utility services.
o The Medical Assistance Program (MAP) provides reduced rates for income-qualified customers who
require the use of medically necessary equipment and/or require medically necessary air conditioning
during the summer billing months.
o The Payment Assistance Fund (PAF) allows qualified households with a current past -due notice to
receive financial assistance once per 12-month cycle on their utility bill.
• More Efficient Dwellings:
o Larimer County Conservation Corps (LCCC) Water and Energy Program
o The Colorado Affordable Residential Energy Program (CARE)
o Both programs are designed to provide no-cost retrofits to homes to make them more efficient and
comfortable.
Although Fort Collins Utilities is not a regulated public utility and is not required to follow the direction of the
Public Utility Commission (PUC), Utilities often examines PUC recommendations for best practices in the
industry. Under the current PUC rules 3412 (electric) and 4412 (gas), investor -owned utilities that serve
Colorado retail customers “shall provide low-income energy assistance by offering rates, charges and services
that grant a reasonable preference or advantage to residential low -income customers,” as permitted by state
statute (§ 40-3-106, C.R.S.). The UAP offerings are in alignment with the PUC recommendations.
Current IQAP Program Design
Utilities partners with the State of Colorado Department of Human Services (CDHS), who administer the Low -
Income Energy Assistance Program (LEAP), for income -eligibility verification for IQAP. LEAP eligibility is
based on household size and an income threshold of 60% of State Median Income (SMI). Utilities customers
that are enrolled in the current or past LEAP season are eligible to complete an application to “opt -in” to
participate in IQAP. Utilities sends bulk invites via mail or email to LEAP-enrolled customers annually to
encourage them to apply for participation in IQAP. Customers can also fill out an application at any time during
the year to be enrolled in the program, provided their LEAP enrollment can be verified. Applications can be
completed online or via a paper form. Once an application is received by Utilities staff, the customer’s LEAP
enrollment is verified and their rates are changed for the applicable services.
In addition to receiving the reduced rate on services, IQAP participants are encouraged to participate in no -
cost conservation programs, such as LCCC and/or CARE, to make their dwelling more efficient and to help
reduce utility costs further. They also receive the monthly Utilities Insights newsletter that provides low- or no-
cost tips and tricks for reducing utility use and costs.
Initial IQAP Pilot Results
The IQAP was launched in October 2018 and results discussed here are based on the first two full calendar
years of the program (2019 and 2020). The following were used to analyze program impact for participants and
overall ratepayer benefits, as required in Article XII, § 6 of the City Charter:
• Program enrollment numbers
• Reduced rate benefit to customers/utilities revenue impact
• Actual customer utility use (year one)
• Customer surveys
o Pre- and post-program surveys annually
o In-depth customer engagement survey (year one)
Agenda Item 18
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• Aggregate residential ratepayer utility benefits, including reduced system consumption, increased
engagement by program participants in conservation education and retrofit programs, and improved
consumption behaviors.
When IQAP was approved in 2018, participation was projected to be 2,000 customers annually based on
census data and expected LEAP enrollment. For the first two years of the program the actual average annual
enrollment was 717 customers, or 36% of what was projected. Additionally, the projected benefit to customers
was $441,000 and actual average annual benefit to customers was $141,944, or 32% of what was projected.
The actual annual utility bill savings per customer was approximately $200. Table 1 summarizes program
enrollment and the annual benefit to customers.
Table 1: IQAP Planned and Actual Participation and Annual Customer Benefit
Participation Annual Customer Benefit
Planned* 2,000 $441,000
Actual** 717 $141,944
*Council approved in 2018
**Average annual participation and benefit for 2019-2020
Encouraging energy and water conservation through dwelling modifications and behavior change education
has also been a focus of the IQAP pilot. Customers are invited to participate in programs such as LCCC and
CARE. Table 2 summarizes IQAP customer participation in each program in 2019 and 2020. Due to the
impacts of COVID-19, in March 2020 LCCC and CARE were put on hold because contractors were not able to
do in-home assessments. As an alternative, customers were invited to request conservation kits to be sent to
their homes. Kits contained do-it-yourself products that customers could install in their homes to reduce energy
and water use. Approximately 85 IQAP customers have received kits since September 2020.
Table 2: IQAP customer participation in LCCC and CARE
2019 2020
LCCC 90 27
CARE 7 1
In addition, IQAP participants were sent the monthly Utilities Insights newsletter via email or mail. The
newsletter contained seasonal tips, tricks and programs for saving energy and water and ways to make homes
healthier, with the goal of making this information more digestible for customers. Insights newsletters were
offered in English and Spanish. (Attachment 1) Approximately 50% of participants received the newsletter via
email. Open rates on the email version of Insights were significantly higher than the industry average and
summarized in Table 3.
Table 3: Open rates and click rates for emailed version of Utility Insights newsletter compared to
industry averages.
Open Rate Click Through Rate
Utilities Insights E-Newsletter 48% 9.5%
Government Agency or Services Industry Average* 29.98% 11.22%
*Industry average according to Constant Contact data
In an effort to examine impacts of conservation efforts associated with IQAP participation, staff engaged Apex
Analytics, a Colorado based evaluation and analytics firm, to conduct an initial billing analysis for year one of
the program (October 2018-September 2019). The analysis compared 538 IQAP participants to a control
group (utilities customers that were enrolled in LEAP but not IQAP). The billing analysis found there to be no
statistical change in water use and a 5% increase in energy use. (Attachment 2).
Apex Analytics also designed a customer survey that was utilized to understand how IQAP benefited
participants and impacted customer engagement and awareness of conservation programs. Survey invitations
were sent to 527 IQAP participants and 175 customers completed the survey (33% response rate).
Highlights from the findings from the IQAP participant survey include:
Agenda Item 18
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• 76% of survey respondents have participated in or are aware of conservation programs.
• 76% of survey respondents report increased comfort in their home.
• 86% of survey respondents report being more secure in their ability to pay their utility bill.
For additional survey findings, please see the attached Apex Analytics memo (Attachment 2).
The first two full calendar years of IQAP implementation provided valuable information about program design
and execution. Utilizing the “opt-in” application-based enrollment resulted in participation rates that were
significantly less than what was projected. Enrollment moderately increased across the two years.
The COVID-19 pandemic beginning in March 2020 coincided with the second full calendar year of the IQAP
implementation. COVID-19 did not appear to significantly impact program enrollment in 2020, however, it did
impact the conservation component of IQAP. For example, customers were not able to participate in LCCC or
CARE after March 2020 because both programs were suspended due to COVID -19. The suspension
significantly impacted participation rates which was apparent in the sharp decli ne in participation from 2019 to
2020. The effects of COVID-19 on this and other components of the program have made overall assessment
of program effectiveness and sustainability difficult to determine. The pandemic’s continuing effects on
customer behavior is one of the factors driving staff’s recommendations to extend the program pilot.
Issues for Consideration
The IQAP pilot rate is due to expire July 31, 2021, as stated in City Code §26 -724. Staff recommends
extending the rate pilot an additional year (through 2022) and aligning the rate with the annual Fort Collins
Utilities’ rate ordinance that is considered by Council each fall. With the extension staff will:
1. Continue targeted engagement with low-income community members. Staff will utilize findings from
participant surveys to tailor methods of engagement to make them more effective.
2. Build on existing enrollment and seek to enroll 1,300-1,500 customers annually.
3. Continue to promote participation in conservation programs and educate program participants about
efficiency practices.
4. Analyze program impact (e.g., financial impacts and conservation impacts) for customers and the utility.
5. Conduct additional research on low-income programs offered by other municipal utilities to learn about the
utility benefit of the programs.
6. Using updated census data staff will evaluate the 23% rate reduction to determine if the amount of the
reduction is still appropriate for this customer group.
7. Analyze the estimated impacts of allowing customers to qualify for IQAP via other avenues in addition to
LEAP.
Staff also recommend that consideration be given to changing the program from an application -based/opt-in
program to an auto-enroll/opt-out program. An auto-enroll program would eliminate the need for customers to
fill out an additional application beyond the required LEAP application and is expected to significantly increase
participation in the program. In addition to removing participation barriers for customers, auto enroll would
decrease the amount of staff time required to administer the enrollment process and would allow staff to spend
more time engaging directly with customers. Figure 1 illustrates how this would affect program processes and
the customer experience.
Agenda Item 18
Item # 18 Page 5
Figure 1: IQAP Application-based Enrollment Processes Versus Auto-Enroll
Changes to the enrollment process will also integrate with citywide efforts to streamline income -qualified
programs across the organization. For example, LEAP-enrolled customers that move into the Utilities service
area outside of the auto enroll months (December - May) will be able to apply for IQAP via the online or mobile
portals that are currently in development in partnership with Code for America. (Attachment 3).
Should Council approve the change to an auto-enroll program, staff proposes starting the auto-enroll format
with the 2021-2022 IQAP season that begins October 1, 2021. Staff will analyze the impacts of switching to
auto-enroll and will report findings to Council in fall 2022.
Extending the IQAP Rates and adjusting the IQAP Program enrollment, as described in the proposed Ordinance,
will continue support for the utility purposes originally outlined for the pilot, including benefiting the rate payers by
improving conservation practices through outreach and education; improving the rate of on-time payment of utility
bills and reducing billing operation expenses, consistent with the purposes of Article XII, § 6 of the City Charter.
CITY FINANCIAL IMPACTS
Changing the IQAP enrollment format is projected to potentially double the community participation in the
program which could increase the annual cost of the discount from $141,944 (0.1% of total utility operating
revenues) to $272,342 (0.2% of total utility operating revenues). The costs for this program are included in the
cost-of-service models for each utility. Table 4 illustrates the projected impact on overall participation and
annual customer benefit and Table 5 illustrates the projected revenue impacts for each utility.
Table 4: Projected Impact of Making IQAP an Auto-Enroll Program
Participation Annual Customer Benefit
Planned* 2,000 $441,000
Actual** 717 $141,944
Projected with Auto Enroll*** 1,372 $272,342
*Council approved in 2018
**Average annual participation and benefit for 2019-2020
***Based on estimated 98% auto enrollment of all LEAP-enrolled customers
Agenda Item 18
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Table 5: Projected revenue impacts by utility of making IQAP an auto-enroll program
Utility Planned* Actual** Projected***
Electric $348,000 $105,782 $215,423
Water $39,000 $17,041 $23,149
Wastewater $54,000 $19,121 $33,770
TOTAL $441,000 $141,944 $272,342
*Council approved in 2018
**Average annual revenue impact for 2019-2020
***Based on estimated 98% auto enrollment of all LEAP-enrolled customers
BOARD / COMMISSION RECOMMENDATION
The Affordable Housing Board, Energy Board, Water Commission recommends extending the IQAP rate pilot
an additional three years and making the program an auto-enroll/opt-out program. (Attachment 4-6)
Staff presented to the Council Finance Committee on June 16, 2021 and incorporated their feedback (meeting
minutes are not yet available).
PUBLIC OUTREACH
The Affordable Housing Board, Energy Board, Water Commission and Council Finance Committee meetings
were noticed and open to the public. Additionally, staff utilized feedback from IQAP participant surveys to
inform proposed program extension and changes. Second Reading of the Ordinance has been scheduled for
August 4, 2021, to allow for mailed and published notice of the hearing on the Ordinance thirty days in
advance.
ATTACHMENTS
1. Utilities Insights Newsletter (sample) (PDF)
2. Apex Analytics Memo (PDF)
3. Digital Access and Equity Outreach Update Memo (PDF)
4. Affordable Housing Board Minutes (draft) (PDF)
5. Energy Board Minutes (PDF)
6. Water Commission Minutes (draft) (PDF)
7. Powerpoint Presentation (PDF)
DID YOU KNOW?
LEDs use 75% less energy and will last up to ten
times longer than incandescent lights. This could
save you hundreds of dollars during the holiday
season. Plus, you’ll save with Time-of-Day (TOD)
electric pricing if you make the switch to LEDs. Check
out how TOD affects the cost of using decorations
for one hour, from fcgov.com/TOD-cheat-sheet:
UTILITIES INSIGHTS
Small Changes, Big Differences
November 2020 | Issue 11
Utilities
Monthly newsletter for Fort Collins Utilities customers with tips to save energy and water to lower utility bills.
fcgov.com/UAP | utilitiesaffordability@fcgov.com | 970-212-2900
Auxiliary aids and services are available for persons with disabilities. V/TDD 711
ADDITIONAL RESOURCES
Need Help Paying Your Bill?
If you are past due on your Utilities bill due to the
COVID-19 public health crisis, you may be eligible
for financial assistance of up to $600 through the
CARES Act. Learn more at fcgov.com/CARES.
•Apply early. Funds are limited and
applications will be processed on a first-come,
first-served basis.
•Approved funds will be applied directly to
customer accounts as bill credits within 30 days
of applying.
•Utilities will resume shut-offs for non-payment
beginning Nov. 13. Visit fcgov.com/covid-updates
to learn more and explore payment options.
Customers can receive utility bill assistance through
the Payment Assistance Fund once per season
(Oct. 1 – Sept. 30). For assistance, call:
•Catholic Charities (970-484-5010)
•La Familia/The Family Center (970-221-1615)
•Discover Goodwill (888-775-5327, ext. 7)
Don’t Forget to Renew!
•Apply for LEAP. Renew your application online at
fcgov.com/LEAP or by phone at 866-432-8435.
•Medical Assistance Program renewals start
Dec. 1. Go to fcgov.com/medical-assistance or call
970-212-2900 for more information.
You Can Open This Gift Early ...
Just a handful of free conservation kits are still
available. Kits include LED light bulbs, sink aerators
and more. These are easy to install and will help you
save on your utility bill. Request your kit at
fcgov.com/free-kit or call 970-416-2032.
MAKE A LIGHT SWITCH
•Consider switching to LED holiday lights
this season.
•Unplug all lights and decorations when not in use.
•Look for electricity-free decorations like tinsel,
garland or wreaths.
•Recycle broken string lights at the Timberline
Recycling Center (1903 S. Timberline Road,
970-221-6600).
‘Tis the season for festive decorating. Save money on your utility bill this winter with these tips.
On-peak hours (5-9 p.m. Oct.-Apr. / weekdays only)
Off-peak hours (all other hours of the day, plus
weekends and major holidays)
ATTACHMENT 1
noviembre 2020 | 11.a Edición
Utilities
“UTILITIES
Pequeños Cambios, Gran DiferenciaINSIGHTS”
Boletín mensual para clientes de Fort Collins Utilities con sugerencias para ahorrar energía eléctrica y agua para reducir sus facturas.
fcgov.com/UAP | utilitiesaffordability@fcgov.com | 970-212-2900
Hay ayuda y servicios auxiliares disponibles para personas con discapacidad. V/TDD 711
¿SABÍA USTED?
Que los focos LED usan un 75% menos de energía y tienen
una duración de hasta diez veces más que los focos
incandescentes. Esto podría ahorrarle cientos de dólares
durante la temporada de luces de invierno. Además,
ahorrará con los precios de electricidad Time-of-Day
(TOD) si cambia a focos LED. Vea como TOD afecta el
costo del uso de decoraciones durante una hora (visite
fcgov.com/TOD-cheat-sheet):
RECURSOS ADICIONALES
¿Necesita ayuda para pagar su factura?
Si su factura de Utilities está vencida debido a la crisis
de salud pública de COVID-19, quizá sea elegible para
asistencia económica de hasta $600 a través de la
Ley CARES. Más información en fcgov.com/CARES.
• Complete su solicitud temprano. Los fondos son
limitados y las solicitudes serán procesadas según el
orden en que fueron recibidas.
• Los fondos aprobados serán aplicados directamente
a la cuenta del cliente como crédito dentro de 30 días
a partir de la fecha de entrega de la solicitud.
• Utilities reanudará la desconexión de servicios por
falta de pago a partir del 13 de noviembre. Para más
información visite fcgov.com/covid-updates.
Los clientes pueden recibir asistencia para el pago
de su factura de servicios públicos a través del fondo
de asistencia Payment Assistance Fund una vez por
temporada (octubre 1 al 30 de septiembre). Para
asistencia llame a La Familia/The Family Center
(970-221-1615), Catholic Charities (970-484-5010) o
Discover Goodwill (888-775-5327, ext. 7).
¡No olvide renovar!
• Complete su solicitud para LEAP. Renueve su
solicitud en línea en fcgov.com/LEAP o por teléfono
en 866-432-8435.
• La renovación para el Programa de Asistencia
Médica inicia el 1 de diciembre. Para más información
visite fcgov.com/medical-assistance o llame al tel.
970-212-2900.
Puede abrir este regalo ahora...
Aún hay kits de eficiencia gratuitos disponibles. Los kits
incluyen focos LED, aireadores de grifos y más. Son fáciles
de instalar y le ayudarán a ahorrar dinero en su factura de
servicios públicos. Pida su kit en fcgov.com/free-kit
o llame al 970-416-2032.
CAMBIE DE ALUMBRADO
• Considere cambiar sus luces navideñas a luces LED
esta temporada.
• Desconecte todas las luces y decoraciones cuando no
estén en uso.
• Busque decoraciones no eléctricas como oropel y
guirlandas.
• Recicle las guirnaldas de luces inservibles en el Centro
de Reciclado Timberline (1903 S. Timberline Road,
970-221-6600).
Estamos en temporada de decoración para las fiestas. Ahorre dinero en su cuenta de luz este invierno con estas sugerencias.
Horas Pico (5 a 9 p.m. octubre a abril entresemana)
Horas Valle (todas las otras horas del día, fines de
semana y días festivos)
Para una decoración
inflable Para una guirnalda de
focos grandes
AAPEX ANALYTICS Page | 1
T o : Brian Tholl, City of Fort Collins Utilities
F r o m : Noah Lieb, Joe Van Clock, Jon Koliner, Apex Analytics
S u b j e c t : Findings for the Income Qualified Assistance Program
D a t e : April 7, 2021
This memo details the research and findings from a statistical billing analysis and participant
survey for the City of Fort Collins Income Qualified Assistance program (IQAP).
Background
When Fort Collins Utilities launched its time of day (TOD) rates in October 2018, it also
introduced an Income Qualified Assistance Program (IQAP) to ensure its rate structure
remained equitable. The IQAP provides a 23 percent reduction on electric and water bills for
Utilities customers who qualify for Colorado’s Low-income Energy Assistance Program
(LEAP) through Energy Outreach Colorado. Utilities has enrolled over 700 customers in the
IQAP from the roughly 1,600 customers who qualify and participate in LEAP.
As part of the eligibility for receiving the IQAP rates, Utilities has an educational and
engagement requirement for customers to participate in conservation activities.0F
1 The
potential for increased engagement with qualified customers, who have traditionally been
underrepresented in efficiency programs, and the resulting opportunity to reduce energy
use and achieve non-energy benefits was an important motivator for Utilities to offer the
rate discount.
Utilities sought to understand the electric and water usage impacts from the IQAP rates,
recognizing that, while the engagement/education components could result in energy and
water savings, lower rates could provide a price signal leading to increased use. Utilities
engaged Apex to develop a statistical billing analysis in order to estimate the electric energy
and water consumption impacts from their IQAP efforts, and to conduct a qualitative
analysis to further understand changes in behavior and energy use based on a customer
survey. The objectives of this research were to:
²Determine the electric and water impacts attributable to IQAP participation
²Assess IQAP energy use intensity relative to non-IQAP participants, and whether lower
rates helped IQAP customers achieve a more comfortable or energy equitable home
²Determine the IQAP rate impact on revenue and assess whether IQAP participants
shifted consumption to off-peak hours
²Understand how participants are benefitting from the program and why IQAP
participants energy use changed
²Determine if changes to program engagement offset changes to energy use
1 IQAP participants receive “Utilities Insights”, a monthly newsletter with tips to save energy and water to lower
utility bills and are occasionally contacted directly regarding efficiency programs. There is no requirement for IQAP
participants to attend workshops or participate in other conservation programs.
ATTACHMENT 2
AAPEX ANALYTICS Page | 2
Methodology
Apex conducted a statistical billing analysis to assess electric energy and water consumption
changes as a result of IQAP participation. To explain differences in monthly consumption,
we modeled monthly energy/water consumption as a function of participation status
(participant versus non-participant comparison households), time period (whether the
period was pre- or post-IQAP rate introduction) and weather (for the electric analysis
monthly heating and cooling degree days, for the water analysis, average daily
temperature). Apex developed two energy and water impacts estimates: one for the actual
year and one weather normalized to account for longer-range climate conditions.
Utilities provided data on households participating in IQAP. The analysis included 538 homes
that received IQAP rates between October and December 2018 and remained as active
status in the IQAP dataset.1F
2 Apex matched these households to LEAP-qualified homes that
did not participate in IQAP using a ranked comparison of households based on the pre-
installation period consumption (usage between October 2017 and September 2018) to
create a comparison group.2F
3 Statistical testing showed that the comparison group’s pre-
participation energy consumption closely matched that of the participant group.3F
4
To gain further insight into the changes in energy consumption observed in the billing
analysis, Apex developed a survey guide focused on understanding how participants benefit
from the IQAP rate and any actions they may have taken to change their energy use. Active
IQAP participants with an email address on record in the billing system received an email
solicitation while customers without an email address on record received a letter invitation
to complete the IQAP survey online. Participants received a $20 credit on their bill as an
incentive to complete the survey. Of the 217 mailed invitations and 310 emailed invitations
distributed, 175 IQAP participants completed the survey, resulting in a survey response rate
of 33%.
Key Findings
This section addresses findings related to each of the primary research questions.
²Changes to consumption: Did IQAP participants adjust their electric energy and water
usage relative to non-IQAP participants after receiving the new rates?
The statistical billing analysis results showed that the average household that received IQAP
rates between October and December 2018 experienced an increase in annual electric
usage of 363 kWh, relative to pre-usage and controlling for exogenous effects (represented
by the matched non-participant comparison group households) (Figure 1).
2 There were an additional 167 participants that were inactive, having received the rate for a short duration of time
and were removed from the program due to closing of accounts among other reasons.
3 Specifically, Apex identified the most equivalent non-participant comparison household match based on
Euclidean distance (i.e., the lowest absolute difference in monthly usage compared to the participants).
4 Apex modeled a period to quantify the “drift” of each comparison group relative to the participant homes electric
usage. Using 2017 as a baseline matching period, we then examined the 2018 electric usage before IQAP
participation to quantify the “drift” of the average comparison group versus participant group usage. The LEAP
comparison group showed the lowest “drift”, with electric usage remaining almost perfectly aligned with the
participant homes between January and September 2018.
AAPEX ANALYTICS Page | 3
Figure 1. Participant and Matched Comparison Monthly Electric Usage
Source: Utilities billing system data
As Table 1 shows, the change to the mean annual household energy consumption factoring
in a typical weather year was 380 kWh.4F
5 The average household that received IQAP rates
between October and December 2018 did not show any notable change in annual water
usage attributable to the new (lower) rates.
Table 1. Mean Annual IQAP Billing Analysis Results
Model
Change in
Mean
Study
Period
Household
Usage
Weather
Normal
Household
Usage
Change
Mean
Annual
Load
Change
as % of
Annual
Load
Explanatory
Power (R2)
90 %
Confidence
Interval
Statistically
Significant
Electric +363 kWh +380
kWh
7,408
kWh
+5.1% 0.76 +/- 155
kWh
Yes
Water -945
gallons
-356
gallons
84,952
gallons
-0.4 % 0.51 +/- 3,271
gallons
No
²Participant benefits: How are participants benefitting from IQAP and why did their
energy use change?
The most common benefit participants reported as a result of receiving the IQAP discount
was the need to worry less about paying their utility bills. The ability to keep their homes at
a more comfortable temperature and do things in the home that allow them to stay
healthier, like using an air filter, were also commonly-cited benefits.
5 The model provided strong explanatory power, with an R-squared of 0.76. The household estimate is statistically
significant at the 90% confidence level, though precision was moderate, at +/- 41% (155/380). The lower degree of
precision is a result of the variability in household usage (all household types were included in the analysis,
including electric heat and gas heated homes, single-family, multifamily and manufactured homes).
Post period
AAPEX ANALYTICS Page | 4
Figure 2: Benefits of IQAP Participation (n=175)
While all IQAP participants reported the discount allowed them to worry less about paying
their utility bills, participants whose energy consumption increased were significantly more
likely than those whose usage decreased or stayed the same to report keeping their homes
at a more comfortable temperature due to the discount (Figure 3). According to one
participant, “I am not worried about a big bill, and we don’t have to freeze in the winter. We
still do not have our heaters on during five to nine [PM], but it is better to have the ability
to exercise the option.”
Figure 3: IQAP Participant Agreement that “Because of the Discount, I Keep My Home at a More
Comfortable Temperature” by Change in Energy Consumption
²Program Engagement: Determine if changes in program engagement offset changes
to energy use.
15%
43%
46%
45%
54%
23%
27%
29%
31%
32%
27%
15%
15%
14%
5%
18%
10%
6%
4%
3%
15%
5%
3%
6%
6%
0% 100%
Increased discretionary spending
Do not need to choose between utilities and other
necessities
Maintain healthier home
Increased comfort
More secure in ability to pay utility bill
Completely agree Somewhat agree Neither agree nor disagree
Somewhat disagree Completely disagree
26%
32%
55%
45%
39%
36%
33%
31%
0%100%
Decrease Use (n=23)
No Change (n=22)
Increase Use (n=33)
Total (n=175)
Completely agree Somewhat agree
AAPEX ANALYTICS Page | 5
Survey findings suggest IQAP participants, particularly those whose energy use increased
after receiving the discount, are energy conscious and engaged with energy efficiency
programs. Nearly two-thirds (65%) of IQAP participant survey responses reported that
people in their households put “a lot” of effort into saving energy and water, and a majority
(60%) reported increasing the amount of effort they put into saving energy and water since
receiving the discount (Figure 4). Households whose energy consumption increased since
receiving the discount were nonetheless the most likely to report putting “a lot” of effort
into saving energy and water and increasing their level of effort since receiving the
discount.
Figure 4: IQAP Survey Respondent Reported Effort Devoted to Saving Energy and Water
More than three-fourths of surveyed IQAP participants (76%) were aware of energy
efficiency programs, and a majority (51%) had participated in programs. LCCC was the
most common program in which participants reported participating, with half of all IQAP
recipients that were aware of programs (50%) reporting participating in LCCC.
Figure 5: IQAP Participant Awareness of and Participation in Efficiency Programs
The energy saving tips that Utilities provided to IQAP participants resulted in a marginal
increase in energy saving actions participating households took. Approximately one-third
(37%) of IQAP participants reported beginning to take one or more action they recalled
65%
68%
73%
65%
0% 100%
Decrease Use (n=23)
No Change (n=22)
Increase Use (n=33)
Total (n=175)
People in household put "a lot" of effort
into saving energy and water
26%
18%
36%
29%
30%
27%
36%
31%
0% 100%
Decrease Use (n=23)
No Change (n=22)
Increase Use (n=33)
Total (n=175)
Change in amount of effort put into
saving energy and water since receiving
discount
A lot more effort A little bit more effort
52%
77%
61%
51%
30%
14%
15%
25%
17%
9%
24%
23%
0%100%
Decrease Use (n=23)
No Change (n=22)
Increase Use (n=33)
Total (n=175)
Have participated in programs Aware of programs, have not participated Not aware of programs
AAPEX ANALYTICS Page | 6
Utilities recommending after receiving the discount. A majority of households reported they
already undertook most of the recommended actions prior to receiving the discounts (Figure
6). The greatest increase in uptake of the recommended actions came from households
replacing incandescent bulbs with LEDs and households unplugging electronics or using
power strips to reduce phantom loads.
Figure 6: IQAP Participant Uptake of Recommended Energy Savings Actions (n=175)
²Energy intensity: Assess IQAP energy use intensity relative to non-IQAP participants,
and whether lower rates helped IQAP customers achieve a more comfortable or
energy equitable home
Apex drew on data from Experian and the city assessor to normalize energy usage data on a
monthly kWh per household square foot basis to calculate energy use intensity (EUI). We
examined the pre-and-post-IQAP EUI across various households and primary heating fuel
types. IQAP participants had a statistically significant lower EUI than the comparison group
across single family detached homes and multifamily apartments, the two most common
housing types (Figure 4). This indicates that IQAP households used less energy than
similarly sized homes in the comparison group and thus may have been curtailing their
usage.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Use Monitor My Use tool
Use refrigerator thermometer
Air dry clothes & dishes
Unplug electronics/use power strip
Check for leaks in water fixtures
Change summer thermostat settings
Close windows and curtains or blinds
Replace incandescent bulbs with LEDs
Continued activity, began prior to discount
Began activity after receiving discount, do not recall program recommendation
Began activity after receiving discount, recall program recommendation
AAPEX ANALYTICS Page | 7
Figure 7. IQAP and LEAP Household Energy Intensity (kWh per Sq. Ft.)
²Revenue and Peak Usage: Determine the IQAP rate impact on revenue and assess
whether IQAP participants shifted consumption to off-peak hours.
Apex conducted the same analysis used to assess changes in electric energy consumption
associated with IQAP participation to assess changes in premise-level billing period revenue.
Figure 5 shows the pre-and-post IQAP period monthly revenue for IQAP participants,
matched LEAP non-participants, and a modeled full 23% reduction in revenue (consistent
with a 23% reduction in IQAP rates assuming no change to monthly consumption). The
average IQAP participant revenue showed a decline over the post-IQAP rate period between
the comparison non-IQAP LEAP group and the full 23% reduction. This is consistent with the
finding above that IQAP participants showed an increase in consumption and tells us that
revenue did not fall in lockstep with the rate reduction.
Figure 8. Monthly Revenue
Post Period
AAPEX ANALYTICS Page | 8
Apex further investigated on-peak period use between IQAP participating and non-
participating groups. We found that overall peak period use (as a percent of total monthly
use) is statistically higher for IQAP participants, as seen in Figure 6 below. IQAP participant
peak use is consistently higher than non-participants (both LEAP non-participants and all
other residential non-participating customers). We can conclude that IQAP participants,
during the post-IQAP rate period, showed consistent or higher on-peak usage relative to
non-participating LEAP customers, and therefore did not shift their consumption to off-peak
hours relative to non-participants.
Figure 9. Monthly On Peak Percent of Electric Energy Use
Conclusions
On average, IQAP households increased their energy consumption after receiving the
discounted rate. The Apex team’s analysis suggests that this increase in energy
consumption reflects households that are no longer as concerned about paying their energy
bills choosing to keep their homes at a more comfortable temperature.
Increased program engagement with IQAP participants did not offset increases in energy
consumption due to the discount, likely because there is limited remaining energy savings
potential from behavioral and low-cost measures in IQAP participants’ homes. IQAP
participants, and particularly those whose energy consumption increased, are energy
conscious, making and increasing efforts to save energy. They are also aware of, and have
participated in, efficiency program offerings and undertook most of the energy saving
behaviors Utilities recommended. Thus, there may be little opportunity for significant,
additional energy savings in IQAP participants’ homes short of equipment replacement and
building upgrades, which face significant cost and split incentive barriers in a low-income
population with a high proportion of renters.5F
6
6 Split incentive barriers occur when the entity responsible for bearing the upfront cost of an efficiency
improvement (e.g., a landlord) is separate from the entity that benefits from the resulting energy cost savings (e.g.,
an individually metered tenant).
Summer period
AAPEX ANALYTICS Page | 9
The Apex team’s analysis of household energy use intensity (EUI) is consistent with these
findings. IQAP participants in the two most common housing types (single family detached
homes and multifamily apartments) used less energy on a per-square-foot basis than
similar income-qualified households. While single family detached and multifamily IQAP
participants’ EUI increased after receiving the discount, it remained below that of the
comparison households.
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ATTACHMENT 3
CURRENT OUTREACH
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AFFORDABLE HOUSING BOARD
REGULAR MEETING DRAFT
Thursday, May 6, 2021, 4 PM
Remote/Online via ZOOM
5 /6 /2021 – MINUTES Page 1
1 CALL TO ORDER
At 4:03 PM the meeting was called to order by Kristin Fritz.
2 ROLL CALL
a Board Members Present: Diane Cohn, Kristin Fritz, Bob Pawlikowski, Tatiana Zentner,
Daphne Bear, John Singleton
b Board Members Absent: Jennifer Bray
c Staff Members Present:
▪Sue Beck-Ferkiss, Staff Liaison – City of Fort Collins
▪Kleena Brown, Minutes – City of Fort Collins
▪Meaghan Overton (joined in progress) – City of Fort Collins
d Citizens Present:
▪Marilyn Heller
3 AGENDA REVIEW - no changes
4 CITIZEN PARTICIPATION
a Marilyn Heller mentioned Legal Woman Voters Affordable Housing Team will have
Thistle’s Andy Kadlec as a guest speaker for their Thursday, May 13th meeting. Thistle
helps mobile home parks residents buy their park. Andy Kadlec will discuss the possible
purchase of Hickory Village. The owner has an offer for $23 million to buy the park, and
residents have 90 days for opportunity to purchase. The residents have 90 days to make
and offer come up with financing plan.
5 APPROVAL OF MINUTES
Bob moved to approve April minutes.
John seconded. Approved 6-0.
6 NEW BUSINESS
a Income Qualified Assistance Program Update and Proposed Changes – Jamie
Gaskill and Brian Tholl - City Utilities Department
▪Extend IQAP pilot program (discounted rate program) another 3 years - set to
expire July 31, 2021
o Estimated six thousand more utilities customers could benefit from program
ATTACHMENT 4
AFFORDABLE HOUSING BOARD
REGULAR MEETING
5 /6 /20 2 1 – MINUTES Page 2
o Average $200 annual utility bill savings
o First year of program did see approximately 5% increase in energy use from
discounted rate customers versus income qualified customers who were not
enrolled
▪ Move to auto-enroll process/opt-out program instead of an application based/opt-in
program.
o Benefits to auto enroll: customer focused program thus reducing barriers;
shortens process; reduces admin time; gives option to opt out; could almost
doubles participation of residents
o Proposed start date at beginning of October
DISCUSSION AND FEEDBACK SUMMARY:
▪ Participants must initially apply for Colorado’s Low-Income Energy Assistance
Program (LEAP) even if in auto enroll.
▪ Jaime confirmed that even if customer increased energy use, they still saved
money on bills.
▪ Customers largely reported increase comfort in homes, and security in ability to
pay bill
▪ Full paying users saw conservation of 1.5 to 2%.
▪ Auto enrollment may ease the burden of income qualified folks who typically have
a lot of forms/applications to fill out
▪ Qualifications for LEAP:
o 60% > state median income
▪ Factors, like the pandemic, contributed to 4% increase overall in energy use.
o These factors likely distorted the outcome of the pilot program
▪ Board members discussed extending the pilot to evaluate program
o Hope to have better data
Bob moved to recommend to Council that the IQAP pilot be extended by 3 years and to move
from an application-based system to an auto enroll system. Tatiana seconded. Motion passes
6-0.
b Update on Fee Credit Requests and Metro District policy - Sue Beck-Ferkiss
▪ Fee Credit Requests
Board members were thanked for their recommendation to support fee credit
requests. Sue stated that they have received what was expected in terms of
requests and will forward it on to Council consideration on May 18. Currently
scheduled for consent but could be a discussion item. Council Finance
Committee also recommended supporting the fee credit requests.
o Two different projects:
▪ Oak 140 – 7 qualifying new units ($90k in fee credits)
▪ Cadence by Volunteers of America – 18 qualifying units ($250k in fee
ENERGY BOARD
REGULAR MEETING
3.To advise the City Council and staff regarding the alignment of energy programs and policies with
City, ratepayer and community values and service delivery expectations.
4.To advise the City Council and staff regarding the recommendations for improvements to City
energy systems.
5.To coordinate with other City boards and commissions regarding energy issues.
6.To advise the City Council and staff regarding budgetary, rate-making, and operational matters
related to the electric utility.
7.To annually review and provide advice to City Council and staff on the City's Legislative Policy
Agenda regarding energy and energy-related carbon issues.
Board member Tenbrink wondered what type of person within the community (not a specific individual)
would best support this role and the principles the Energy Board is driving toward? Board member
McFaddin said a person experienced in energy policy, any community member with similar experience
would better serve the Board of Directors so that they can influence policy, not operations. Board member
Braslau said he doesn’t think it is a question of who or what, but rather is it a conflict of interest to appoint
someone who oversees the setting and execution of policy. He noted that in both public and private
sectors, boards do not have employees involved in setting policy.
Ms. Connor said the City Manager will begin to actively recruit a new Utility Director starting in June. She
noted that the City pays them $95 to $100 million per year, they are an extension of our system. The
marriage of operation and policy is critical and unique to our municipal government, like the Poudre Fire
Authority board, in which the City Manager also serves. Poudre Fire Authority (PFA) is an extension of the
City’s services and having Mr. Atteberry serve on the board creates continuity and strengthens the
relationship between PFA and the City. Ms. Connor also sits on the Boxelder Basin Regional Stormwater
Authority Board along with an elected official. The lines are blurring, and the management of these
relationships is nuanced.
Board member Gould is sympathetic to the separation of policy and operation, but he is unsure how the
selection would work to find someone who is experienced in energy policy who also knows the depth and
detail of the City’s Our Climate Future plan. Board member McFaddin said she is aware of several
community members, herself included, are willing to fill the role.
Some Board members agreed that the Board of Director’s seat should be policy based, however nuanced
the role and relationships might be. Some felt they hadn’t given this topic enough consideration ahead of
tonight’s discussion, and some felt that a balance of both policy and operation would be beneficial.
Board member Tenbrink said when he served on the utility board in his previous municipality, the Utility
Director served on the Board as a non-voting member. Board member Braslau agreed it would be
beneficial to have the directors be non-voting members, but that would require a change to the Organic
Contract. Board member McFaddin said it would be great to offer that suggestion to Mayor Arndt and City
Council. Board members Braslau and McFaddin said they would be glad to draft a memo on behalf of the
Energy Board, with Chairperson Becker’s final approval, to communicate the Board’s concerns and
summarizing their discussion from this evening.
UTILITIES INCOME-QUALIFIED ASSISTANCE PROGRAM UPDATE &
PROPOSED CHANGES
Jamie Gaskill, Senior Supervisor, Community Engagement
Brian Tholl, Senior Supervisor, Energy Services
(attachments available upon request)
ATTACHMENT 5
ENERGY BOARD
REGULAR MEETING
The Utilities Affordability Portfolio of programs is structured in a way that helps customers reduce their
utility burdens, or the percentage of their incomes spent on utilities. Utilities takes a three-pronged
approach to serving income-qualified customers and helping to reduce their utility burdens: Payment
Assistance (through reduced rates or emergency payment assistance), home efficiency (retrofit programs
to make the home more efficient so it uses less energy and/or water), and efficiency practices (teaching
customers behaviors to help reduce their use so they can save resources and money).
Utilities’ Affordability Programs are structured to support the three-pronged model. Income-Qualified
Assistance Program (IQAP), Medical Assistance Program (MAP), and Payment Assistance Fund (PAF)
all support the Payment Assistance prong. Larimer County Conservation Corps (LCCC) Water and
Energy Program and Colorado Affordable Residential Energy (CARE) both support the efficient home
prong.
The IQAP is an opt-in Program that offers a 23% discount on Utilities services. The statewide LEAP
program acts as the City’s eligibility criteria, so when a customer is LEAP-qualified they are automatically
eligible for IQAP. At this time, the customer is required to apply through an application process through
the Utility to be enrolled in IQAP. This program was approved by City Council and launched in October
2018, in conjunction with the City’s new Time of Day rate structure. The IQAP rate will expire on July 31,
2021 if no action is taken. When the program was approved, the projected number of participants was
2,000 and the annual benefit to customers was estimated at $435,000. The actual participation and
benefits in 2019-2020 were 717 customers, $141,000. From a revenue perspective, there is a per-
customer savings of about $200. Interestingly, program participants are using about 5% more energy
than they were prior to receiving the discount. The increased energy use is consistent with changing a
thermostat setting 2-3 degrees or running an additional load of laundry each week.
Ms. Gaskill said staff is looking for feedback on two issues related to IQAP with City Council: Should the
IQAP rate pilot be extended for another 3 years (a total of five years), aligning with Utilities annual rate
ordinance, and should IQAP be an auto-enroll/opt-out program, as opposed to an application-based/opt-
in program?
Staff had a lot of engagement in the first two years of the IQAP pilot, but COVID impacted their ability to
analyze the effects of the programs. Staff hopes Council will consider an extension so that Utilities will be
able to seek to enroll more customers and utilize the findings from the program to tailor engagement and
behavior-change education.
Currently IQAP is an application-based program where LEAP-enrolled Fort Collins Utilities Customers are
sent an invitation to apply for the program on an annual basis. This method has resulted in Utilities
enrolling approximately 50% of possible program participants. If the program is switched to auto-enrolling
it will help remove barriers to entry for low-income customers. It would also reduce the amount of staff
time spent enrolling customers, which may allow Utilities to spend more time engaging with customers
and increase their reach. Additionally, more program participants will increase the accuracy of evaluation
for the program, because while the data for prior evaluations was statistically significant, a bigger sample
size will strengthen the validity of the data. Staff is proposing starting the auto-enroll approach with the
2021-2022 season, which will begin October 1, 2021, to align with LEAP program year. Staff is projecting
that the auto-enroll approach would result in just under 1,400 program participants, bringing the program
much closer to its planned participation of 2,000 customers.
Board member Tenbrink said he supports the auto-enroll option and hopes it will be approved by Council.
Board member Braslau agreed, he said he was surprised the program didn’t launch with an auto-
enrollment option. He added that even with auto-enroll, the program’s reach falls short of the estimated
ENERGY BOARD
REGULAR MEETING
8,000 people who need help and are excluded by LEAP for one reason or another. Ms. Gaskill noted that
the 8,000 people are estimated under the Utilities Affordability Programs Portfolio as a whole, and many
of the programs within the portfolio have different income qualifications.
Chairperson Becker noted that the dead-period outside of the LEAP enrollment period is still a problem
since that is the only way to qualify for the program. He wondered if someone falls into a bad situation,
like if they lost their job, what short term options are available to help fill the gap. Ms. Gaskill said the PAF
can help for situations like that, it is a one-time assistance option with an income-qualification of 80% of
the area median income.
Board member Braslau said the increased energy use from customers participating in IQAP is to be
expected, many were likely underheating or underutilizing their utility services to save money and are
likely now just meeting their needs at a regular standard of comfort. He cautioned to make sure to not
shame customers for not conserving when they are simply meeting a need that was previously stymied.
Board member Braslau moved the Energy Board recommends City Council support the extension
of the IQAP rate pilot an additional three years and aligning it with the Utilities’ fall rate ordinance.
Board member Moore seconded the motion.
Discussion:
No additional discussion.
Vote on the motion: It passed unanimously 8-0
Board member Tenbrink moved the Energy Board recommends City Council support changing
IQAP from an application-based/opt-in program to an auto-enroll/opt-out program.
Board member Giovando seconded the motion.
Discussion:
No additional discussion.
Vote on the motion: It passed unanimously 8-0
PRELIMINARY 2022 BUDGET PLANNING
Adam Bromley, Director, Operations & Technology, Utilities Light & Power
(attachments available upon request)
Mr. Bromley explained how the budget process evolved in the face of the COVID-19 pandemic. Typically,
the City plans a two-year budget, and that process occurs every two years (ex: plan the 2019-2020
budget in 2018). The Budgeting for Outcomes (BFO) process alternates with updates to the ten-year
Capital Improvement Plan (CIP). The CIP helps to inform the budget offers staff will right for the next BFO
process. The pandemic disrupted this process and condensed both BFO and CIP work into a single year;
in 2020 staff created a one-year budget for 2021, and then in 2021 staff worked to update the CIP for
2023-2032 while concurrently working on another one-year budget for 2022.
Staff submitted their first round of draft offers on April 26, and then City BFO teams worked to review
those offers and ask clarifying questions between April 29 and May 26. Offer narratives were published
on May 10, and staff has begun community outreach, which will last through mid-summer. Staff will
submit a second round of offers with the BFO teams’ and community’s input between May 27 and June 4,
Excerpt from Unapproved DRAFT MINUTES WATER COMMISSION
REGULAR MEETING
May 20, 2021, 5:30 p.m. – 7:30 p.m.
via Zoom
0 5/20/202 1 – Excerpt from Unapproved DRAFT MINUTES Page 1
Utilities Income-Qualified Assistance Program Update and Proposed Changes
Utilities Program Specialist Supervisor Jamie Gaskill and Energy Services Supervisor Brian
Tholl, Utilities Affordability Programs (UAP) staff, provided an update on UAP impact in 2020
and on the in-depth analysis that was conducted on the effectiveness of the Income-
Qualified Assistance Program. They presented proposed changes to UAP programs and will
motion for Water Commission and Energy Board to recommend that City Council adopt the
proposed changes.
Discussion Highlights
A commissioner recalled that several years ago, the UAP team proposed to reach a
maximum of 2,000 accounts through the Income-Qualified Assistance Program (IQAP), but
inquired how it’s potentially estimating 8,000 accounts per a slide in the presentation. Ms.
Gaskill responded that the number actually includes five separate programs rather than just
the IQAP. Later slides showed that for IQAP, the planned participation was for 2,000, while
the actual was 717, from which a commissioner calculated that the average discount was
about $16 a month, or about $200 a year. The commissioner also inquired if this was just for
water, which Mr. Tholl clarified that it was for water, wastewater, and electric utilities. The
commissioner also wondered aloud on the different circumstances between homeowners
and renters, and how the IQAP may have unforeseen impacts on them differently. A
commissioner wondered about the end goal to assist low-income households, and found
that the pilot may seem arbitrary as it’s currently defined, noting that the program may gain
more support with a better-defined goal. Mr. Tholl and Ms. Gaskill touched on how the City
is forming an Equity Office with more efforts to establish metrics for equitable service
delivery, which is likely to include efforts that lighten the disproportionate utilities burden on
low-income customers. In addition, they explained that the City is working to streamline low-
income program offerings across the organization. Interim Utilities Executive Director
Theresa Connor commented that that this program is a pilot, and it’s shedding light on the
needs, which help to define the goal. A commissioner shared that it seems like a bad idea to
make it an auto-enroll program simply to double the number of participants, and should
make customers apply and make a justification to qualify beyond LEAP, e.g. credit card
usage to show that they’re not monetarily irresponsible. The commissioner would not like to
see it become a permanent program that leads customers to perpetually rely on government
assistance. Another commissioner commented that the program does in fact seem like a
good program to serve the low-income customers of the city. Another commissioner noted
that this serves 2-3% of the population based on the number of residential electric premises
in the community. Another commissioner inquired if the auto-enroll option would help
families who are working several jobs and also reduce staff time needed to run the program,
which Ms. Gaskill confirmed. Another commissioner inquired about the number of CSU
student participation in the program, which Ms. Gaskill will follow up with demographic
ATTACHMENT 6
WATER COMMISSION
REGULAR MEETING
05/20/2021 – DRAFT MINUTES Page 2
information.
Commissioner Brown moved that the Water Commission recommend City Council
support the extension of the IQAP rate pilot an additional three years and align it with the
Utilities’ fall rate ordinance.
Commissioner Eldridge seconded the motion.
Vote on the Motion: it passed unanimously, 10-0.
Commissioner Brown moved that the Water Commission recommend City Council
support changing IQAP from an application-based/opt-in program to an auto-enroll/opt-out
program.
Chairperson Bruxvoort seconded the motion.
A commissioner approved auto-enrollment and commented that it would be good to
eliminate the possibility of those who need the program to fall to the wayside if they don’t
find the opportunity to apply.
Vote on the Motion: it passed 9-1 with Commissioner Primsky voting against as he’d like to
see participants apply and provide justification.
Utilities Income-Qualified Assistance Program
Update and Proposed Changes
Jamie Gaskill, Utilities -Community Engagement
Brian Tholl, Utilities –Energy Services 1
ATTACHMENT 7
Agenda
1.Overview of Utilities Affordability
Portfolio
2.Income-Qualified Assistance
Program Background and Impact
3.Issues for Consideration
4.Discussion
2
3Utilities Affordability Portfolio
Payment
Assistance
Efficient
Home
Efficient
Practices
Lower Utility
Costs
How We Help Income-Qualified Customers Reduce Utility Costs
Payment
Assistance
Fund
(One-Time
Assistance)
4
Colorado
Affordable
Residential
Energy
(Deep Retrofits)
Income-
Qualified
Assistance
Program
(Discounted
Rate)
Medical
Assistance
Program
(Discounted
Rate)
LCCC Water
and Energy
Program
(Basic Retrofits)
Utilities Affordability Programs (UAP)
5Utilities Affordability Program Impact
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Actual in 2020 Estimated Potential Reach
Number of Participants for Al l UAP Programs
(IQAP,MAP,PA F,LCCC and CARE)
6,000*
more
Utilities
customers
could
benefit from
UAP
6,000*
more
Utilities
customers
could
benefit from
UAP
8,000*
2,000*
*Estimated using a city-wide poverty rate of ~12%, based on Census Bureau data combined with controlling for the student population in
Fort Collins (City Rebates Eval Report, 2019).
IQAP Background
•Strategic Objective Alignment:
•NLSH 1.3: Improve accessibility of City and
community programs to low-and moderate-income
residents and increase participation in services to
eligible income-qualified residents.
•Our Climate Future Alignment:
•Equity focused implementation, seeking solutions
that address a spectrum of needs in our community.
•Next Move EEFB5:Provide focused energy
efficiency and indoor air quality incentives for
historically under-served households.
•Program launched in October 2018 in conjunction with
Ti me-of-Day electric pricing
•LEAP-enrolled customers eligible to apply for reduced-
rate on select utilities services
6
Income-Qualified
Assistance
Program
(Discounted Rate)
Public Utilities Commission (PUC) Direction to Investor-Owned Utilities
Under PUC rules 3412 (electric)
and 4412 (gas), utilities that serve Colorado
retail customers “shall provide low-income
energy assistance by offering rates, charges
and services that grant a reasonable
preference or advantage to residential low-
income customers,” as permitted by state
statute (§40-3-106,C.R.S.).*
7
*Fort Collins Utilities is not an investor-owned utility and is not required to follow PUC direction, however, Utilities often reviews PUC
recommendations for best practices in the utilities industry.
IQAP Background
•Engagement
•Monthly Utilities Insights newsletter
•Direct customer engagement at events and
through targeted outreach
•Outreach to agencies
•Evaluation
•Pre-and post-program surveys
•Billing analysis (year one)
•In-depth customer survey (year one)
•IQAP rate set to expire July 31, 2021
8
9IQAPPlanned vs. Actual Impact
*Council Approved in 2018
**Average annual participation and benefit for 2019-2020
Participation Annual Customer
Benefit
Planned*2,000 $441,000
Actual**717 $141,944
•Enrollment
•# of participants
•% of eligible participants enrolled
•% of budget utilized
•Average annual utility bill savings
•Participant electric and water use
•Participant engagement
•% of participants aware of conservation offerings
•# of participants utilizing conservation programs
•% of participants engaging with Insights newsletter
(open and click-through rates)
•% of participants reporting feeling confident in their
ability to afford their utility bills
Program Metrics 10
Evaluation Measures
Billing Analysis Findings
•Average annual utility bill savings: $200
•Energy use: 380 kWh/year (5%) increase
•Wa ter use: no statistical change
Customer Survey Findings
•33% response rate
•76% have participated in or are aware of
programs
•86% report being more secure in ability to
pay bill
IQAP Billing Analysis & Customer Survey 11
Program Evaluation Highlights: Ye ar 1 of Program
Issues for Consideration
1.Extend IQAP rate pilot another year
(for a total of 4 years) and align with
Utilities’annual rate ordinance.
2.Make IQAP an auto-enroll/opt-out
program instead of an application-
based/opt-in program.
12
13Extended IQAP Rate Pilot
•Continue targeted engagement and enrollment with low-income population
•Ta ilor methods based on findings from prior billing analysis and
participant surveys
•Enrollment target of 1,300-1,500 customers
•Execute ongoing analysis of program impact
•Consideration given for COVID impact
•Evaluate behavioral efficiency and conservation alignment
•Evaluate and quantify other benefits
•Additional research and analysis
•Evaluate discount percentage amount using new census data
•Analyze best practices from other municipal utilities
•Examine impacts of expanding enrollment entry points in addition
to LEAP
•Review findings with Council in fall 2022
Next Steps for IQAP Pilot Extension
14
IQAP Auto-Enroll/Opt-Out
Customer is
approved
for LEAP
LEAP List Sent
to Utilities
LEAP List Sent
to Utilities
Customers
Bulk Enrolled
onto IQAP
Rate*
Customers
Invited to Apply
for IQAP Vi a
Paper or
Online
Application
Staff Process
Returned
Applications
and Enroll
Customers
onto IQAP
Rate
Customer
Notified of
Enrollment and
Additional
Engagement
Begins
Auto-EnrollApplication-based EnrollmentCustomer
Notified of
Enrollment and
Additional
Engagement
Begins
*Enrollment via application option would still exist for LEAP-enrolled customers who move into service area outside
of timeframe that auto-enrollment would take place.
•Customer-focused program design (reducing
barriers)
•Reduced administrative time during enrollment
•Increased opportunity to engage customer
segment
•Increased sample size positively impacts
program evaluation accuracy
•Integration with city-wide income-qualified efforts
•Proposed start: 2021 IQAP Season
15
Considerations for Auto Enrolling Participants
IQAP Auto-Enroll/Opt-Out
16IQAPActual vs. Projected Impact
*Council approved in 2018
**Average annual participation and benefit for 2019-2020
***Based on estimated 98% auto enrollment of all LEAP-enrolled customers
Participation Annual Customer
Benefit
Planned*2,000 $441,000
Actual**717 $141,944
Projected with
Auto Enroll***1,372 $272,342
Group Outcome
Affordable Housing Board Pilot extension -supported
Auto enroll -supported
Energy Board Pilot extension -supported
Auto enroll -supported
Wa ter Commission Pilot extension -supported
Auto enroll -supported
Council Finance Committee
Pilot extension –supported
Auto enroll –supported
Feedback incorporated
17Boards, Commissions and Committee Feedback
18Adoption Consideration
Does Council wish to adopt an ordinance on First Reading
that amends Code to extend the IQAP rate pilot one
additional year and makes IQAP an auto-enroll/opt-out
program instead of an application-based program?
For Questions or Comments, Please Contact:
Jamie Gaskill, Utilities Community Engagement
jgaskill@fcgov.com | 970-416-4338
THANK YOU!
19
-1-
ORDINANCE NO. 091, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 26 OF THE CODE OF THE CITY OF FORT COLLINS
RELATED TO WATER, WASTEWATER AND ELECTRIC RATES, FEES, AND CHARGES
APPLIED UNDER THE INCOME-QUALIFIED ASSISTANCE PROGRAM
WHEREAS, the City Council is empowered and directed by Article XII, §6 of the Fort
Collins City Charter, to by ordinance from time-to-time fix, establish, maintain and provide for
the collection of such rates, fees or charges for utility services furnished by the City as will
produce revenues sufficient to pay the costs, expenses, and other obligations as set forth therein;
and
WHEREAS, the current rates, fees or charges for utility services set forth in Chapter 26
of the City Code are necessary to produce sufficient revenues to provide the utility services
described herein; and
WHEREAS, the revenue from the rates, fees or charges for utility services as proposed
for adjustment herein shall be used to defray the costs of providing such utility services as
required by the Charter and the City Code; and
WHEREAS, on May 1, 2018, City Council adopted Ordinance No. 054, 2018, creating
the Income-Qualified Assistance Program (“IQAP Program”) including eligibility, components,
requirements, and discounted utility service rates for residential water, wastewater, and electric
services furnished by respective enterprises of the City (the “IQAP Rates”), as codified in
Articles III, IV, and VI of Chapter 26 of the City Code; and
WHEREAS, the initial IQAP Rates were adopted for a limited period of time expiring
July 31, 2021 such provisions require extension to remain in effect after that date; and
WHEREAS, Fort Collins Utilities staff has identified provisions of Chapter 26 of the
Code where consolidation and clarification of IQAP Program eligibility and practices are
required to better align with City Council priorities, market efficiencies and utility practices; and
WHEREAS, the City Manager and Utilities staff have also recommended to the City
Council that City Code be clarified to align the applicable period for IQAP Rates with the
applicable periods for other City utility rates; and
WHEREAS, the Energy Board considered proposed City Code adjustments for the IQAP
Program and Rates at its May 13, 2021, regular meeting and recommended approval of the
proposed adjustments; and
WHEREAS, the Water Commission considered the proposed City Code adjustments for
the IQAP Program and Rates at its May 20, 2021, regular meeting, and recommended approval
of the proposed adjustments; and
-2-
WHEREAS, the City Council Finance Committee considered the proposed City Code
adjustments for the IQAP Program and Rates at its June 16, 2021, regular meeting and staff
included the Committee’s feedback in the final adjustments proposed herein; and
WHEREAS, the proposed extension of the IQAP Rates and adjustments to the IQAP
Program benefit the public's health, safety and welfare and serve a utility purpose that benefits
the rate payers by improving conservation practices through outreach and education; improving
the rate of on-time payment of utility bills and reducing billing operation expenses, consistent
with the purposes of Article XII, §6 of the City Charter; and
WHEREAS, based on the foregoing, City Council desires to amend Chapter 26 of the
City Code to adjust customer eligibility for the IQAP Program and IQAP Rates for electric and
water, and wastewater services as set forth herein.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. Section 26-724(b), (c) and (d) of the Fort Collins City Code are hereby
amended to read as follows:
Sec. 26-724. - Residential income-qualified assistance program.
. . .
(b) Qualification. As set forth in this Section, a an opt-out discount on certain components of
City utility service rates applied under this Chapter shall be available for qualified customers
who satisfy the following criteria:
. . .
(c) Enrollment. Customers may begin receiving the discounts described in this Section
through the following methods:Applications. Applications for discounts under this Section must
be submitted annually in accordance with an administratively established schedule available
from the Fort Collins Utilities.
(1) Auto enrollment; opt-out. Customers identified by the Utility as qualified based
on subsection (b) above shall be automatically enrolled in the program on an annual basis
and receive the discounted service rates set forth in subsection (d) below. The Utility may
rely on current enrollment in LEAP to qualify customers without requiring a program-
specific application. Any customer who does not wish to receive such discount m ay
contact the Utility customer service office to request removal from (i.e. “opt-out” of) the
program created by this Section; and
-3-
(2) Application. Customers not otherwise automatically enrolled may enroll in the
program via an application, provided the customer’s enrollment in LEAP can be verified.
(d) Rates. The discounts applied to monthly base and volumetric rates for qualified IQAP
customers shall be as set forth in Sections 26-127(a), 26-280, 26-464(c), and 26-465(c) of this
Code on meter readings during the period of August 1, 2021, through July December 31, 2022
(beginning October 1, 2018 and ending July 31, 2021).
. . .
Introduced, considered favorably on first reading, and ordered published this 6th day of
July, A.D. 2021, and to be presented for final passage on the 20th day of July, A.D. 2021.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on this 20th day of July, A.D. 2021.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk