HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/14/2016 - UTILITIES LOW-INCOME ASSISTANCE PROGRAM-INCOME QUADATE:
STAFF:
June 14, 2016
Lisa Rosintoski, Utilities Customer Connections Manager
Lance Smith, Strategic Financial Planning Manager
Randy Reuscher, Utility Rate Analyst
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Utilities Low-Income Assistance Program – Income Qualified Rate (IQR).
EXECUTIVE SUMMARY
The purpose of this item is to propose a discounted rate structure for low income households for electric, water,
and wastewater utility services based on the 165th percentile of the Federal Poverty Level (FPL). Staff developed
two priority improvements in 2015 to enable the successful implementation of a Utilities integrated low-income
assistance program. The first improvement was to the existing Payment Assistance Fund Program (PAF)
managing enhancements through several funding mechanisms to more effectively address temporary financial
needs for utility customers facing imminent service interruptions due to unanticipated financial hardships. The
second improvement is an Income Qualified Rate (IQR), which is a discounted rate structure for qualified Utilities
customers, based on income, for electric, water and wastewater services.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
1. Does Council have feedback on the proposed Income-Qualified Rate?
2. Does Council have concerns staff has not addressed?
3. Is Council supportive of a January 1, 2017 implementation date?
BACKGROUND / DISCUSSION
Utilities staff, in collaboration with internal and community stakeholders, has determined that an effective
conservation strategy addressing affordable energy for low-income customers includes the development of an
Income-Qualified Rate (IQR). Incorporating IQR will enable Utilities to refine and improve conservation and
efficiency programs as they relate to low-income customers who may not have the ability to participate due to
transportation difficulties, lack of time, or lack of financial resources needed to meet up-front conservation or
efficiency program costs.
When a Utilities customer has persistent financial difficulty in paying for utility services, the PAF is not adequate or
appropriate to address this situation month after month. In addition, any further rate increases required to either
support Utilities increasing costs of service, or to support accepted utility purposes such as resource conservation
efforts, are likely to exacerbate a low-income customer’s difficulty in paying utility bills. Thus, IQR is an opportunity
to address the financial hardships of the low-income customer segment, through a rate structure that encourages
participation in energy and water conservation and efficiency programs.
Staff proposes the implementation of a two year pilot rate beginning in January 2017. Using data collected
throughout 2017, staff will provide City Council a memorandum in 2018 outlining the execution results, which will
evaluate the rate and determine if adjustments are necessary. After monitoring and collecting data for two years,
a full analysis and evaluation will be conducted and brought to City Council for consideration of continued
implementation in 2019.
June 14, 2016 Page 2
Utilities Low-Income Assistance Program Evaluation
In 2014, a comprehensive low-income assistance program evaluation was conducted with internal and external
key stakeholders, in order to understand Utilities role to optimally support low-income customers, detailed in
Attachment 1. Stakeholders involved in both the 2014 evaluation report and on the 2015 implementation project
team effort included:
1. Interdepartmental participants: Customer Connections, Social Sustainability, City Finance, Utilities Finance,
Neighborhood Services.
2. Boards, Commissions and Committees: Energy Board, Water Board, Senior Advisory Board, Affordable
Housing Board, Human Relations Commission, Community Development Block Grant Commission,
Commission on Disability, Council Finance Committee, Economic Advisory Committee, and Chamber of
Commerce.
3. Governmental Partners: Colorado Energy Office, Larimer County Human Services Department
4. Community Action Partners: Energy Outreach Colorado, Volunteers of America, United Way, Office on Aging,
Catholic Charities, La Familia/The Family Center, Discover Goodwill, Social Sustainability Grantee Training
participants (26 non-profit agencies).
5. Housing Partners: Fort Collins Housing Authority, Neighbor to Neighbor, Care Housing, multi-family group-
metered properties.
Payment Assistance Fund (PAF)
Improvements to funding and administration of the PAF include leveraging community match funding through
Energy Outreach Colorado and repurposing abandoned utility service account balances in the same manner as
the State does to support a more robust PAF. Through these enhancements, it is expected the PAF annual
budget may exceed $100,000 annually making it possible to help more customers each year with payment
assistance for temporary and time sensitive needs.
Income Qualified Rate (IQR)
In the Fort Collins community, the average household with income of less than 165% of the Federal Poverty Level
(FPL) pays 4.6% of their income for electric, water and wastewater services compared to the 2.6% of household
income paid by those households earning the Area Median Income (AMI) (see Graph 1). To address this disparity
the proposed IQR would align the percentage of household income at 165% of FPL to that of an AMI 2.5 person
household. When structuring the IQR, it is important the same ratio of fixed and variable charges exists in order to
convey the same conservation signals to customers. This could be accomplished by reducing both the fixed and
variable charges for the IQR customers for each of these three utility services by a combined 40%. See Table 3
for a discount break down for each service.
June 14, 2016 Page 3
Graph 1: Based on 2009-2013 US Census data.
In order to estimate how many potential households may qualify for IQR, staff utilized the latest American
Community Survey data to estimate household incomes for Fort Collins. Based on that data there are as many as
9,000 eligible households, or ~ 16% of our residential customers, potentially eligible for the IQR (See Graph 2).
This is consistent with the latest US Census data (2009-2013) which indicates 18.6% of people in the City of
Fort Collins are below poverty level, compared to 13.2% in the state of Colorado
<http://quickfacts.census.gov/qfd/states/08/0827425.html> and 15.4% nationwide.
Graph 2: Based on 2009-2013 US Census data.
The actual cost of IQR depends on the level of enrollment. Table 1, below, shows cost by utility at various
enrollment levels.
June 14, 2016 Page 4
enrollment % Electric Water Wastewater
25% $ 350,307 $ 57,679 $ 96,309
50% $ 700,614 $ 115,358 $ 192,618
75% $ 1,050,922 $ 173,037 $ 288,926
100% $ 1,401,229 $ 230,716 $ 385,235
IQR Annual Cost
Table 1
Assuming 100% enrollment, Table 2 shows the necessary rate increase to fund this program if the increase is
kept within the residential rate class and if the increase is shared across all rate classes. Achieving an enrollment
rate less than 100% would scale the rate impact accordingly. Based on the experiences of other communities,
enrollment above 75% of eligible households is difficult to achieve.
Electric Water Wastewater
Residential Rate Class Only 3.0% 1.3% 2.4%
All Rate Classes 1.2% 0.8% 1.8%
% Increase By Utility Service
(Assuming 100% Enrollment)
Table 2
The intent of IQR is to reduce overall cost of utility services to the same relative level experienced by a household
with income at the Area Median Income, so each utility service would see a different discount rate (See Table 3).
The discount would be applied to both the fixed and variable charges for each utility, ensuring the same price
signals are communicated to this segment of residential customers as are to the entire residential rate class.
Electric Water Wastewater
165% FPL 2.0% 1.3% 1.3%
AMI 1.3% 0.7% 0.6%
Discount 35% 46% 54%
% Income By Utility Service
Table 3
Specific utility purposes the IQR serves
IQR provides a utility purpose in relation to energy and resource conservation, as well as affordable rates for
customers. IQR will serve the utility purposes beneficial to the utility rate payers described below. Utilities will
collect and analyze IQR participation data to annually determine the extent to which these program benefits are
achieved across the residential rate class and each utility. This data will be reported to Council as outlined in the
“Evaluation with Measures” section below, and the data will be used to refine the IQR parameters to maintain the
highest and most sustainable rate benefits for each utility:
1. The IQR qualification process will establish a mechanism to identify and to promote the most applicable
conservation program opportunities for low-income customers, including education and the ability to identify
whether programs and rate structures are effective for this customer segment.
IQR supports the continuous improvement of residential programs, with direct data recognizing the
household incomes of ratepayers and their relative abilities to pursue conservation and efficiency
incentives.
Currently, $2M is collected annually for residential energy efficiency programs, and $750K for residential
water conservation programs. Of this, low-income customers pay approximately $320K and $120K,
respectively, but participate at approximately half the level of customers who are not low-income (See
Table 4).
June 14, 2016 Page 5
Table 4
Financial hardship and a prevalent tenant status in this customer segment, impair the ability and
likelihood to pursue home efficiency improvements.
2. IQR will directly reach low-income customers with behavior-related programs designed to permanently reduce
their energy costs, and education focused on conservation by creating a financial incentive paired with bill
payment assistance.
Low-income homes are more likely to be heated primarily with inefficient units, e.g., portable electric
heaters, electric resistance heaters, electric water heaters; less likely to have and use programmable
thermostats; more likely to use high heat settings; and less likely to participate in energy saving appliance
programs. This is likely due to up-front costs associated with some efficiency programs (e.g., appliance
replacement), the general inability of tenants to address dwelling efficiency needs, and the challenges of
communicating with this traditionally hard to reach customer segment.
The IQR has the potential to funnel program resources to achieve targeted low-cost efficiency measures
with high conservation behavior change potential within this traditionally non-homeowner segment,
without relying on direct system replacements or other actions that disproportionately reward third-party
property owners or managers at the expense of rate payers.
3. Aligning bill payment assistance with energy efficiency programs is a utility industry best practice leading to
more effective outreach to low-income households.
Delivering programs through an IQR will allow Utilities to craft programs sensitive to this customer
segment’s unique circumstance and targeted to their consumption profile, which may include low and no
cost upgrades, behavioral awareness and habit change.
The anticipated result is reduced consumption with the segment and across the residential class, due to
greater adoption of conservation practices and participation in efficiency programs. Increasing
participation in such efforts in less energy efficient housing serves the broader utility purpose of promoting
energy and resource conservation.
4. IQR will align with efforts to position the Home Efficiency Loan Program (HELP) as a strategy to support low-
income customers’ participation in energy efficiency. With a clearly defined income qualified customer
segment, it may be possible to craft eligibility requirements for HELP specifically targeted to IQR enrolled
homeowners. Increasing participation in such efforts in less energy efficient housing serves the broader utility
purpose of promoting energy and resource conservation.
5. IQR will enable Utilities to better study the effectiveness of strategies to reach specific customer segments.
Staff will be able to compare the use of targeted marketing and outreach strategies with actual premise
usage, allowing Utilities to better quantify realized energy savings.
6. IQR will enable Utilities to better leverage existing low or no cost regional efficiency programs, such as LEAP,
Monitor My Use, Larimer County Energy and Water Program, and Colorado Energy Office
Weatherization/Longs Peak Energy Conservation.
June 14, 2016 Page 6
Data gathered through IQR will be unique from that available through other regional programs because it
will focus on City customers, as opposed to broader populations, and will correlate income and
conservation receptivity with greater granularity than other agencies can provide. Aligning with other
government partners to gather and evaluate this data will aid in determining whether messaging to low-
income customers is tailored to encourage the intended customer behaviors.
On-going analysis of this data will allow for timely enhancements across Utility conservation and
efficiency programs.
Execution of the Income Qualified Rate
Outreach
Outreach will be intentional in reaching a spectrum of customers within the low-income segment. Tactics will
include widely accessible, mass communications such as website and social media information, as well as direct
mail to potential participants and targeted communication disseminated through local service providers and
internal partners. Staff will work with local service providers and internal partners to eliminate these barriers and
increase access to IQR.
Administration
Larimer County Department of Human Services (DHS) administers the state sponsored LEAP program. LEAP
deploys a thorough qualification process to successfully qualify thousands of applicants for energy assistance
each qualification season (November-April). Rather than creating a new qualification process for IQR, staff
proposes qualifying customers through the established and time-tested LEAP process.
In 2017 LEAP will qualify applicants at 165% FPL. This threshold is dictated by the state LEAP office on an
annual basis and may change periodically. IQR qualification will track the established statewide LEAP threshold
each year. Customers will be required to reapply each year.
Leveraging the LEAP qualification process has several monetary and customer benefits:
1. It is highly accessible: customers can apply via phone, fax, mail, or email.
2. It avoids several administrative costs. Analysis’ show administrative costs associated with creating a Utilities
administered qualification process would require at least 2 additional fulltime employees.
3. It allows customers to fill out one application for both LEAP and IQR, achieving convenience and accessibility
for applicants.
4. It leverages state funding, allowing Utilities PAF emergency assistance dollars to go further.
5. It allows customers to receive more benefits by ensuring both IQR and LEAP are utilized.
Education and Direct Installs
Once a customer is on IQR, they will be targeted with low cost and no cost conservation behavior change and
direct install opportunities designed to reduce their use. Opportunities will leverage existing resources and will
include City, state, county and non-profit administered programs. Conservation opportunities with a range of
customer participation levels will be available in an attempt to reach the spectrum of customers within the low-
income segment.
Medical Assistance Program (MAP)
IQR offers a larger discount than MAP, yet the income qualifications are very similar. Staff recommends using the
2017 and 2018 IQR qualification process to migrate existing MAP customers to IQR. At the end of the IQR pilot
(December 2018) it is possible some MAP customer’s income will be too high to qualify for IQR. If that is the case,
staff recommends these customers continue with MAP due to the continuous electrical needs associated with
durable medical electrical equipment or air conditioning needs.
June 14, 2016 Page 7
Evaluation with Measures
Staff proposes the implementation of a two year pilot rate beginning in January 2017. Using data collected
throughout 2017, staff will provide City Council a memorandum in 2018 outlining the execution results, which will
evaluate the rate and determine IQR participation and energy and water conservation program participation
among the low income segment. After monitoring and collecting data for two years a full analysis and evaluation
will be conducted and brought to City Council for consideration of continued implementation in 2019.
Next Steps
Prepare rate ordinance for consideration at the August 16 City Council meeting as part of the consent
calendar.
If the rate ordinance is adopted on Second Reading, launch community outreach campaign in compliance
with City Code waiting period following adoption.
ATTACHMENTS
1. Low Income Assistance Program Evaluation Report (PDF)
2. Energy Board memo (PDF)
3. Affordable Housing Board memo (PDF)
4. United Way letter (PDF)
5. State Low-Income Energy Assistance letter (PDF)
6. Energy Outreach Colorado letter (PDF)
7. Water Board memo (PDF)
8. Powerpoint presentation (PDF)
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Low Income Assistance
Program Evaluation Report
Fort Collins Utilities
20144
ATTACHMENT 1
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TABLE OF CONTENTS
Executive Summary .................................................................................................... 4
Recommendations Identified by the Project Team ..................................................................... 4
Conclusion .................................................................................................................................... 5
Project Management Process ..................................................................................... 5
Project Team .............................................................................................................. 6
Data .......................................................................................................................... 8
Payment Assistance Program ................................................................................................... 8
Utility Payment Assistance Program ..................................................................................... 9
Payment Assistance Program & Utility Shut-Offs ............................................................... 10
Graph 1: 2013-14 Utility Delinquencies, Shut-Offs & Accts. Assisted w/ PAF$ .............. 10
Payment Assistance Program Strengths & Limitations ....................................................... 11
Graph 2: Payment Assistance Fund Assistance Awarded 2004-2013 ............................. 11
Medical Assistance Program ................................................................................................... 11
Graph 3: Medical Assistance Program Participation ....................................................... 12
Medical Assistance Program – Strengths & Limitations ..................................................... 13
Rate Impact Adjustments .................................................................................................... 13
Graph 4: 2013 Medical Assistance Program Customer Use ............................................ 13
Graph 5: Medical Assistance Program Participation by Rate Category .......................... 14
Conservation/Efficiency Education ......................................................................................... 15
City Finance Rebate Program ................................................................................................. 15
Graph 6: City Finance Office 2013 Rebate Summary ...................................................... 16
Low Income Rate .................................................................................................................... 16
Focus Group ........................................................................................................................ 17
Criteria ..................................................................................................................... 18
Graph 7: Low Income Assistance Program Criteria ......................................................... 19
Temporary (T) Assistance: ...................................................................................................... 20
Chronic (C) Assistance: ........................................................................................................... 20
Graph 9: Low Income Assistance Program – Chronic Application .................................. 20
Scenario Creation ..................................................................................................... 21
Utilities Role in Supporting Low Income Customers .............................................................. 21
Rates ....................................................................................................................................... 21
Administration ....................................................................................................................... 21
Fundin ..................................................................................................................................... 21
Conservation/Efficiency Education ......................................................................................... 21
Graph 10: Utilities’ Role in Supporting Low Income Customers ..................................... 22
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Scenario Forming ...................................................................................................... 22
Graph 11: Scenarios for Structuring the Low Income Assistance Program..................... 23
Recommendations ................................................................................................... 23
Next Actions ............................................................................................................. 24
Appendix 1: Project Team Benchmarking 2012 ............................................................................. 25
Appendix 2: Research and Recommendations from 2012 Project Team ...................................... 29
Appendix 3: Low Income Assistance Program Project Charter 2014 ............................................ 36
Appendix 4: Catholic Charities Emergency Clinic 2013 Program Data .......................................... 39
Appendix 5: Medical Assistance Application 2014 ........................................................................ 43
Appendix 6: Compiled Focus Group Questions & Responses (4.29.14) ........................................ 45
Appendix 7: Larimer County Area Median Income 2013 ............................................................... 53
Appendix 8: Bill Insert/Envelope for Payment Assistance Campaign 2014 ................................... 54
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Low Income Assistance – Program Evaluation Report
Executive Summary
The purpose of the Low Income Assistance Program evaluation project was to evaluate existing
low income utility customer assistance programs and design a program portfolio incorporating
elements of energy efficiency, education, income criteria, as well as collaboration with other
City programs and local non-profits. The following key deliverables were managed by a multi-
disciplined project team:
x Create a comprehensive program that addresses community needs based on Utilities’
role.
x Structure programs to have minimal impact on staff time.
x Provide education to increase awareness and conservation practices for low-income
customers, empowering them to reduce electricity and water use and lower their bills
x Create measurable performance metrics/phased approach.
x Avoid shut-offs and reduce write-offs; intervene earlier to minimize costs to the Utility
and the customer.
x Create networking opportunities with local non-profits and other City departments to
support sustainable implementation of program.
The project team, consisting of Utilities staff, City staff and external non-profits, received
presentations that provided detailed data, from both internal and external presenters, to
understand how Utilities provides low income utility support, as well as how other agencies
administer low income support. This process consisted of understanding the data, creating
Utilities low income criteria based on Utilities role, reviewing the criteria based on seven
scenario options and recommending a scenario that best supported the community’s need for
low income utility assistance.
Recommendations Identified by the Project Team
1. Utilities role is managed within four categories: rates, administration, funding and
efficiency.
2. Low Income Assistance Program criteria was determined to consist of income, Utilities
electric customer, and efficiency/conservation education. There are two systems
generally used for classifying low income program participation: the Federal Poverty
Guideline and area median income (AMI). AMI was selected for this program because
the majority of local non-profits use it as the system to determine low income program
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participation in our area. For the purposes of this program, low income is defined as
income between 0% and 50% of the area median income for Larimer County.
3. Temporary crisis is defined as assistance available in situations where a customer could
not pay utilities because of an emergency or life-changing circumstance. This assistance
would be offered through the current Payment Assistance Program and would be
limited to $150 maximum per calendar year (could be more than one disbursement).
Documentation on the situation requiring temporary utility assistance would be
requested.
4. Chronic circumstance is a long-term situation with difficulty making utility payments due
to financial hardship. A low income electric rate could offer a tiered approach based on
the area median income for Larimer County: one rate for customers who fall between
0%–29% AMI; a second rate for customers who fall between 30%–50%. Participation in
this “low income” electric rate would be facilitated through the City Finance Office as an
extension of the existing City Rebate Program. The Medical Assistance Program would
be discontinued.
5. The focus group work session identified the following barriers to program participation:
location of trust, convenience (one application to fulfill requirements) and
transportation.
6. Requirement that both temporary and chronic levels of assistance include an
energy/water efficiency/conservation educational opportunity and/or audit.
Conclusion
In conclusion, the Project Team recommends (1) enhancements to the current Payment
Assistance Program and (2) the creation of a low income electric rate, with two levels of
eligibility based on participant income level. The Payment Assistance Program would be
administered through the Utilities Customer Connections Department - Customer Finance
Division. The “low income” electric rate would be facilitated through the City Finance Office as
an extension of the existing City Rebate Program.
An enhanced Payment Assistance Program and a “low income” electric rate will strengthen
support to the low income population by recognizing that financial hardship often has two
characteristics: temporary crisis and on-going financial difficulty. Utility customers would be
eligible for one but not both of these offerings in any calendar year.
Project Management Process
Utilities staff began benchmarking low income programs offered by the Utilities with other key
municipal utilities and local Investor Owned Utilities, specifically Austin Energy, Colorado
Springs Utilities, Eugene Water and Electric Board, Xcel Energy (appendix 1 and appendix 2).
In late 2013, Utilities began a review titled the Low Income Assistance Program. The Utilities
Customer Connections Manager pulled groups of staff together to share information and select
a project manager. The project description was to “evaluate current utility assistance programs
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and design a “low income” program for utility customers, incorporating elements of energy
efficiency, education, income criteria and collaboration with other City programs and local non-
profits.”
Critical to the project was engaging City staff who had experience working directly with the low
income population and/or had been involved in recent trainings such as “Bridges Out of
Poverty” and homelessness initiatives. Engagement with representatives from local non-profit
groups who had experience and in-depth knowledge about working with the low income
population was also invaluable.
On February 7, 2014, the project launched with 11 team members and bi-weekly meetings
scheduled through June 2014, for a total of 12 meetings (appendix 3). This group received
presentations from local non-profits on low income offerings, as well as utility customer
program and rate design information. A focus group was held on February 7, 2014 to gain
insight from other local non-profit groups, as well as community members, on the need for
assistance and the role the utility might play in providing assistance.
Project Team
The project team represented various departments across the City and local non-profits who
work with low income community members. Each member brought valuable experience to
their role on the team:
Mary Atchison, former Director of Social Sustainability City of Fort Collins – Mary
worked on various low income community initiatives in 2014. She has 12 years of
nonprofit leadership experience and ten years as a private therapist.
Bevia Byrne, Fort Collins Utilities Customer Support Supervisor – Joining the City in
2012, Bevia has completed several “Bridges out of Poverty” trainings and events and
was also part of the City’s Bridges Steering Committee. As supervisor of the Utilities
customer support team, she leads the customer service representatives in assessing and
directing low income and financially struggling customers to the various payment
assistant organizations for support.
René Evenson, Fort Collins Utilities Customer Accounts (project manager) – In her role
as residential accounts coordinator, Rene’ helped create the Payment Assistance
Program for Fort Collins Utilities in 2004. She has 12 years of experience helping
residential customers understand electric and water consumption and providing
resources to reduce their use.
Shawn Montoya, Fort Collins Utilities Customer Finance – Shawn has worked in the
collections/adjustments/lending areas at credit unions and now at the City of Fort
Collins for a combined total of over 20 years. His interest in the low income discussion is
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based on finding pro-active methods for assisting individuals and families that have a
true financial need.
Amanda Nagl, Neighborhood Administrator City of Fort Collins – Amanda is involved in
this project from a quality of life focus for families and neighborhoods, with an emphasis
on process improvement for the organization. Her education is in Organizational
Leadership and Human Resource Management (M.S.) and Psychology (B.A.).
Randy Reuscher, Fort Collins Utilities Finance Rate Analyst – Randy studies the effect
utility rates and rate design has on various sectors in our community. He and his
department have presented information on current residential rates, proposed rate
scenarios, area median income data and customer segmentation based on income data
and has been an active member of this discussion.
Jenne Loffer, United Way 2-1-1 Call Center Manager – Jenne has worked as the United
Way of Larimer County 2-1-1 Call Center Manager for nine years. She is also involved in
community committees and boards, such as the Fort Collins Housing Authority Board
and the Young Adult Resource Alliance. Jenne is passionate about helping people and
working collaboratively to make the community the best it can be for all people.
Linda Rumney, Social Worker Larimer County Office on Aging – Linda Rumney is a
social worker who has been with the Larimer County Office on Aging (LCOA) for ten
years. The LCOA provides resources and services for older and disabled adults as well as
the intake for the Foundation on Aging emergency grant program. Linda works with
clients who struggle financially and strongly supports programs to assist those that are
most vulnerable and struggling to meet their basic needs.
Emily Sander, former City of Fort Collins Finance – For the past 17 years, Emily has
worked with federal, state and local governments, as well as non-profit organizations, to
help them better serve the community. Ms. Sander is a graduate of Colorado State
University and holds a Bachelor of Science in Human Development and Family Studies.
Nancy Stafford, Director Property Management, Fort Collins Housing Authority – As an
employee at the housing authority, Nancy works with low income families daily. She is
very aware of the difficulty for the lowest income households to provide basic
necessities like heat, cooling and water for their families. She felt privileged to
participate in the discussions regarding low income utility clients.
Bill Switzer, Fort Collins Utilities Finance Rate Analyst (retired) – Bill was a Rate Analyst
with Fort Collins Utilities for 42 years. He was a member of the team who created the
Medical Assistance Program and provided program history as well as background on
rate philosophy and design for this project team.
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Data
Project team meetings received presentations on Utility programs, rate theory and design and
information on other programs available to low income members of the community. This
material provided team members an opportunity to understand how programs support low
income community members. It was also a forum for sharing their experience working with
community members. The intent was to give each team member a solid basis for evaluating
current programs and headroom to brainstorm about future offerings.
Payment Assistance Program
The Payment Assistance Program was created in 2003 out of a concern that low income
customers might be negatively impacted by the new electric rate philosophy in the “Energy
Supply Policy.” Utilities staff researched local and nationwide payment assistance programs and
recommended the “Payment Assistance Program.”
Since implementation in 2004, the Payment Assistance Program has awarded an average of
$33,000/year in donations to roughly 350 utility customers who are in danger of shut-off for
non-payment.
Catholic Charities Larimer County manages the application/verification process through their
“Emergency Assistance” clinic. This clinic works to provide a number of services, and draws
from a number of funds to provide that assistance (appendix 4). Currently, the maximum
amount a customer can receive in Payment Assistance Program funds is $150/year. If the utility
bill is larger than that amount, funds may be pulled from one of the other sources of support
available to Catholic Charities. In some instances, there may be no other funding available. The
Payment Assistance Program is the only funding source that helps Fort Collins Utility customers
with delinquent amounts for water billing.
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City of Fort Collins Utility Payment Assistance Program 12/01/03
Utility Payment Assistance Program
The City will offer a utility payment assistance program, administered by Fort
Collins Utilities and Catholic Charities Northern, to help residential customers
with low income or a financial crisis remain current with their utility accounts and
avoid shut-off.
Program Guidelines
x Program is open to Fort Collins Utilities’ customers.
x Customer must have received a shut-off notice for a current address in the
customer’s name.
x Customer is eligible for help once within a 12 month period.
x Deposit and late fees will not be included.
x Assistance is available for both electric and water usage.
x Program participation subject to available funds.
Administration
Catholic Charities Northern will receive program applications and screen
applicants through their existing “Emergency Assistance Program.” With utility
account history and other information from Fort Collins Utilities Credit and
Collections staff, Catholic Charities staff and trained volunteers will determine
need and award assistance. A yearly administrative fee of 8% of the funds
administered will be paid to Catholic Charities.
Budget
The City of Fort Collins will solicit donations from ratepayers to fund this
program.
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Payment Assistance Program & Utility Shut-Offs
One of the indicators of need in our community is the number of utility shut-offs that occur due
to non-payment of the utility bill. Not every shut-off is due to financial difficulty. Some shut-offs
may occur because the account owner forgets to pay the bill or may be out of the country.
However, the majority of the shut-offs do occur because there is a financial hardship for the
customer.
The current due date for a utility bill is 20 days after the bill is generated. If no payment is
received by day 43-44, a pink shut-off notice is mailed and a $10/late fee is added to the utility
bill. If no payment is received by day 50, the customer’s services are interrupted.
Graph 1: 2013-14 Utility Delinquencies, Shut-Offs and Accounts Assisted with PAF$
The number of utility accounts in 2013-2014 that were shut-off was less than the total eligible
for shut-off. However, the average number of customers who received payment assistance was
29 per month, leaving an average of 700 customers monthly who did not receive assistance
from the Payment Assistance Program. A customer might be denied assistance if no funding
was available at the time of the request or if the customer had already received assistance in
the calendar year. No data is available on how many customers requested assistance but were
denied.
Shut Off Total Cut for NonPay Cut for NonPay Cancel Actual Cut NonPay Assisted Dollar
Notices Processed by Month Count by Month Count by Month Accounts Amount
Mailed # COUNT YR/Month COUNT YR/Month COUNT YR/Month PAF Helped PAF $
4,385 1310 2014/04 388 2014/04 922 2014/04 30 $3,441
4,032 1124 2014/03 314 2014/03 810 2014/03 23 $2,402
4,901 1093 2014/02 322 2014/02 771 2014/02 34 $3,410
5,374 1145 2014/01 360 2014/01 785 2014/01 46 $5,767
4,857 984 2013/12 329 2013/12 655 2013/12 30 $3,359
4,666 1139 2013/11 323 2013/11 816 2013/11 19 $2,123
5,397 1295 2013/10 440 2013/10 855 2013/10 35 $3,944
4,644 1055 2013/09 367 2013/09 688 2013/09 23 $2,557
5,054 1091 2013/08 354 2013/08 737 2013/08 23 $2,324
4,529 1157 2013/07 364 2013/07 793 2013/07 30 $3,387
4,627 1114 2013/06 456 2013/06 658 2013/06 23 $2,316
3,691 1372 2013/05 505 2013/05 867 2013/05 24 $2,449
4,982 1664 2013/04 854 2013/04 810 2013/04 30 $2,995
4,856 1222 2013/03 434 2013/03 788 2013/03 15 $1,527
5,394 944 2013/02 355 2013/02 589 2013/02 39 $4,329
4,725 952 2013/01 335 2013/01 617 2013/01 44 $5,759
4,757 1166 406 760 29 $3,256
2013-14 Utility Delinquencies, Shut-Offs and Accounts Assisted with PAF $
The bottom amount is the average per month (from left to right) : total shut-off notices mailed; total shuts
offs originally scheduled; total cancelled before shut-off: total that were shut-off; total accounts that PAF
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Payment Assistance Program Strengths & Limitations
The Payment Assistance Program has been successful in helping a limited number of customers
over the last ten years. All the funds that are donated are spent during that calendar year:
Graph 2: Payment Assistance Fund Assistance Awarded 2004-2013
Payment Assistance Fund
Assistance Awarded 2004-2013
Year # Customers Total Avg. Amount
2004 218 $16,680 $76.50
2005 313 $27,044 $86.40
2006 320 $28,947 $90.46
2007 349 $33,317 $95.47
2008 347 $33,698 $97.11
2009 427 $41,192 $96.47
2010 378 $37,791 $99.98
2011 391 $37,010 $94.65
2012 345 $34,530 $100.00
2013 328 $36,385 $111.00
Customer donation amounts are either “one-time” or a specified amount added to the utility
bill. Donations have been trending to the “one-time” donation method and have been declining
in the last few years. Every year significant amounts of funding have been used from other
funding sources to assist utility customers.
The agreement for program administration with Catholic Charities Northern Colorado has been
in place for ten years. During that time, the clinic has moved from The Mission on Linden Street
to the Sister Mary Alice Murphy Center for Hope on Conifer Street. Access to services has been
reorganized from the “first-come-first served” method to appointments only on M-Th 8-5pm.
This has created a challenge for some utility customers and has made it more difficult to receive
assistance.
Medical Assistance Program
The residential “tiered electric rate” was adopted in 2011 and implemented in 2012. At that
time, concerns were raised regarding customers who used durable medical equipment (non-
optional electricity usage) or medically necessary air conditioning and the impact a tiered
electric rate would have on their quality of life. Following a Council discussion, staff began
gathering information for the purpose of developing a Medical Assistance Program. Local non-
profit groups also provided input.
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Program objectives included: (1) enhance the quality of life for our citizens;
(2) remove the economic impact of tiered electric rates due to medically necessary electric
consumption; and (3) maintain community conservation values. Customers were qualified for
the program based on the following criteria:
x Customer of Fort Collins Utilities
x Household use of Durable Medical Equipment (DME)
x Household medically necessary use of air conditioning (AC)
x Income threshold of 60% area median income (AMI) – approximately 185% of the
federal poverty level
Three “electric medical” rates were created:
x Durable Medical Equipment (E102)
x Medically Necessary Air Conditioning (E103)
x Durable Medical Equipment and Air Conditioning (E104)
The Medical Assistance Program was well-received by customers, with highest participation
occurring in 2013 (appendix 5). In 2014, participation declined. The total participating in 2014 at
the time of the presentation to the project team was about 80 customers.
Graph 3: Medical Assistance Program Participation
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Medical Assistance Program – Strengths & Limitations
The Medical Assistance Program has been available to customers for three years. During that
time, the number of participants has fluctuated and overall participation has been low.
Barriers to participation in this program may include the need to re-apply every year, the
necessity to have the attending physician sign the application and the need for equipment
information on the application. However, based on feedback from customers who have
participated in the program, the assistance has been valued and worth the effort to apply.
Rate Impact Adjustments
Customers who qualified for the program were given credit for kWh consumption used to
power durable medical equipment or medically-necessary air conditioning. It was determined
that the credited revenue for the kilowatt-hour (kWh) reduction should be recovered over a
wider range of use because the first tier of use was not solely for medical reasons.
Consumption credits were calculated in this way:
x DME - Monthly credit equivalent of 150 kWh per month used for electric durable
medical equipment recovered over the full first tier (500 kWh). 150 kWh determined
from other city estimates in CA and AZ as well as Longmont.
x AC - Summer (June – August) monthly credit equivalent of 350 kWh per month
recovered over the full first two tiers (1000 kWh) for air conditioning (staff estimate).
Graph 4 below shows how program participant electric consumption tracked through the three
electric “tiers” in 2013:
Graph 4: 2013 Medical Assistance Program Customer Use
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The average credit per customer based on category (DME, AC or DME & AC) is outlined below
for 2012 & 2013. With the combination of DME & AC, customers received about $200/year.
DME only was about $150. Customers with medically-necessary air conditioning received the
smallest amount, Graph 5 below:
Graph 5: Medical Assistance Program Participation by Rate Category
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Conservation/Efficiency Education
One of the goals of the low income program evaluation was to investigate how to tie education
on energy and water conservation/efficiency with receiving assistance. There are several ways
to accomplish this goal. Attending an efficiency class could be a requirement in the month
following the award of assistance. This class could be centrally located at a non-profit location
or at the Senior Center, Northside Aztlan Community Center or be available as a video that
could be watched either online or at a designated location. Video content will respect privacy
and financial circumstances of the customer.
Additionally, where all parties agree (including the landlord) a “walk-thru” audit could be
recommended or required. This audit could: check lighting fixtures and replace incandescent
bulbs with compact fluorescent bulbs; provide a clothesline where eligible; install low-flow
showerheads and faucet aerators; and do a safety check of gas fired appliances.
Participation in these educational offerings could dictate the customer’s eligibility to continue
to receive assistance from one year to the next. Any reductions in consumption could be
tracked using the customer consumption data in the utility customer information system.
Future program offerings could also include specific measures or rebates that would be
available to the low income population.
City Finance Rebate Program
A low income rebate program is administered every year through the City Finance Office. It
includes rebates on sales tax on (1) food, (2) property tax/rent or (3) utilities. The utility rebate
has been in place since 1975 and serves senior and disabled low income utility customers. The
rebate amount is based on a monthly consumption average for all utilities:
Sales Tax:
x Established in 1984 – Rebate to low income citizens
x $55 per eligible household member – amount updated annually
Property Tax/Rent:
x Established in 1972 – Rebate to senior and disabled low income citizens
x City portion of applicants property tax levy
OR
x 1.44% of rental payment for year
Utility:
x Established in 1975 - Rebate to senior and disabled low income citizens
x Based on billing data for average monthly Fort Collins Utilities customer consumption of
water, wastewater, stormwater and electric service
x Eligible applicants given rebates for each service in the applicant’s name:
Electricity $48.43 Water $32.14
Stormwater $17.87 Wastewater $14.26
*amounts from 2013
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Requirements for these rebates include:
x Income – 50% Larimer County area median income
x Residency in Fort Collins one year prior to application date
x US Citizenship
x Proof of ID for all members 18 years or older
x Utility rebate available to customers of Fort Collins Utilities
x Applications are accepted August 1 – October 31 each year. Applicants can mail in
applications or turn them in at 215 N Mason. City Staff is available to help applicants
throughout the program and the rebate check is mailed within 6-8 weeks.
Graph 6: City Finance Office 2013 Rebate Summary
Low Income Rate
The Utility Finance Department presented information that investigated the case for a low
income “discounted” rate. This investigation looked into the Utility’s emphasis on offering
annual efficiency/conservation programs for customers. These include:
x Energy Star dishwasher and refrigerator rebates
x LED & CFL lighting discounts
x Free EV charging stations
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x Residential solar rebates
x Low-flow toilet rebates
x Free sprinkler audits
The Utility also spends money annually to purchase renewable energy to meet self-imposed
community goals. Together these expenditures represent 5% of residential electric charges and
6% of water charges.
All customers, regardless of their income level, pay for these progressive policies and programs.
Certainly not all, but the majority of low income customers are typically renters and not home
owners. It is unclear how many of them can participate in the current level of
efficiency/conservation programs outlined above. However, a discounted or low income
electric rate could reduce their utility expense and give them a benefit equitable to
participation in the utilities’ efficiency/conservation programs.
Specific details about this discounted electric rate will be forthcoming from the Utility Finance
Department. The project team recommends a low income rate that has two tiers of
participation for utility customers between 0% and 50% AMI.
Focus Group
A focus group was held on April 4, 2014. Over 30 people attended from the following non-profit
and City groups:
Project Self-Sufficiency Vida Sana
Catholic Charities Larimer County United Way
Larimer County Office on Aging Make Change NoCo
National MS Society Serve 6.8
Fort Collins Housing Authority Disabled Resource Services
City of Fort Collins Neighbor to Neighbor
Social Sustainability
Environmental Services
Fort Collins Utilities
Financial Services
Neighborhood Services
The presentation to this group shared the project purpose, introduced the project team
members and outlined the timeline. The group was then given six questions that explored low
income need in the community, the role of the utility in conjunction with assistance and what a
successful program might look like. Seven discussion groups led by a volunteer facilitator
discussed each of these questions and recorded their findings.
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Focus Group Questions
1. Is utility payment support for low income assistance an issue or need in our community?
2. What challenges do customers who are trying to receive low income assistance
encounter?
3. What kind of reasons could be associated with receiving low income utility payment
assistance?
4. What should Utilities’ role be in supporting low income assistance for utility payments?
5. What would a successful low income utility payment assistance program look like? How
would you measure success?
6. Other comments/observations you believe are relevant to a utility low income
assistance program.
An edited transcript of answers to focus group questions is attached (appendix 6). Several
themes developed regarding needs that could be addressed by the program:
x Transportation to apply for assistance is a challenge.
x There are different populations with unique needs.
x There is a need for energy/water conservation education.
x Work should be done with landlords to make properties more energy efficient.
The project team attended and was active in the focus group discussion and evaluated
responses. Those responses and emerging themes, as well as information received from
presentations and project team experience, formed the basis for the program evaluation and
recommendation – the key deliverable of the project team’s efforts.
Criteria
The project team had several discussions reviewing data presentations and focus group input.
Each team member contributed expertise gained from their non-profit experience.
This project team has direct experience working with many segments of the low income
community, including senior, people with disabilities those with medical circumstances and
those with financial hardship. Team discussions centered on characterizing those populations
and creating program criteria that would have the broadest reach in assisting these customers.
Criteria based on income level of the participant seemed the broadest level of participation,
since this would capture seniors, medical circumstances and financially challenged participants.
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Federal programs covered the remaining populations. An electric account with Fort Collins
Utilities and the willingness to participate in electric/water conservation education or audits
were felt to be crucial requirements to maintain program integrity. Also, rather than requiring
that the utility customer be in danger of being shut-off for non-payment, the requirement for
this program would be an electric account that is “delinquent” or behind in payments.
Graph 7 below shows the criteria that were evaluated. Criteria received a “yes” or “no” based
on a group process that reviewed enhancements unique to this program and the availability of
other City or Federal programs:
Graph 7: Low Income Assistance Program Criteria
Input from the focus group indicated that there are various “populations” within the low
income community that require different levels of support. Additionally, we heard that not only
are there “low income” but there are “no income” members of our community.
Rather than bundling all low-income into one category, the project team created two
categories of need. Guiding principles for this discussion was the Larimer County area median
income data and historical experience with the Payment Assistance Program regarding need.
Some customers find themselves in crisis with paying a utility bill rarely, while others have an
on-going need for assistance. Using this information, two levels of assistance were defined:
Criteria Yes/No T/C Comments
Income YES - Federal Povery or AMI Guideline C Basis for chronic support
Disabled NO Covered by income; SSI or SSDI; A&D
Senior NO Covered by income
Medical Circumstances NO Covered by medical rate
Utilites Customer YES T or C
Education: YES; see types below
class requirement C
brochure/video T
webportal training T or C
Energy/Water Walk Thru Audits YES T or C
Recognizing rental properties and simple adjustments such as lighting
and irrigation in partnership with Larimer County Conservation Corps.
Utility Bill Delinquency YES T or C shut-off notice not required
Low Income Assistance Program Criteria (requirements for assistance) 6.5.14
T=Temporary C=Chronic
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Temporary (T) Assistance
Would be available when a customer could not pay utilities because an emergency had
occurred. This would be offered through the current Payment Assistance Program and would
be limited to $150 maximum a calendar year (could be more than one disbursement):
Graph 8: Low Income Assistance Program – Temporary Application
Chronic (C) Assistance
Would be available to customers with ongoing challenges in paying utility bills. A “low income
utility rate” would offer a tiered approach based on the area median income for Larimer
County: one rate for customers who fall between 0%-30% AMI; a second rate for customers
who fall between 30%-50%:
Graph 9: Low Income Assistance Program – Chronic Application
A component of both levels of assistance is a combination of audits and conservation
education. The need for education in resource conservation/efficiency was a recurring theme in
focus group discussions and the timing with receiving assistance seems optimal for providing
this education.
Requirements Definition Mechanism Next Actions Comments
Income Self report for tracking application
Use existing PAF application and review with
Catholic Charties
Proof of hardship medical, job, car, utility disconnect notice application As part of application ask what is hardship
Utilites Customer City of Fort Collins service territory for electric and/or water Account Create a menu of options for conservation classes.
Delinquincy not
required if person
experiencing hardship
may not be delinquient
but rather being
proactive.
Education
Video in lobby, web-portal training in lobby, brochures
Complete one energy/water audit marketing & visit
Audit may not be possible if owner does not allow.
However, could pursue other options such as, light
bulbs, toilets, shower nozzles, etc.
Note: Receives maxiumum assistance of $150 one time a year, but can use money incrementally.
Low Income Assistance Program: Temporary Application
Requirements Definition Mechanism Frequenc Next Actions
Income AMI - aligns with Sec. 8 and City Rebate
Low Income Electric Rate -
Sliding Rate; 0-30%; 30-50%
Annual
verification
-Collaborate with City Rebate program on
application
-Rate follows person
Utilites Customer City of Fort Collins service territory for electric Account verification Ongoing
Education
Attend one energy or water conservation class
Web portal training Logged into CIS 1 time a year Create a menu of options for conservation classes.
Energy/Water
Audit may not be possible if owner does not allow.
However, could pursue other options such as, light
Walk Thru Audits bults, toildets, shower nozzzles, etc.
Low Income Assistance Program: Chronic Application
Complete one energy/water audit Logged into CIS 1 time
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Scenario Creation
Utilities Role in Supporting Low Income Customers
For the past 15 years, Fort Collins Utilities has created and administered programs to assist
customers having difficulties staying current with their utility bills. The Payment Assistance
Program and Medical Assistance Program have both been successful. However, more support
could be offered to low income customers.
An evaluation of the Utilities’ role in supporting low income customers is crucial in determining
what additional support can be offered. The project team identified four areas of responsibility
for the Utilities’ role in supporting low income customers: rates, administration, funding and
efficiency.
Rates
The cost of providing electricity has continued to rise and rate increases have been
implemented for the residential segment of our community over the last few years. The utility
already administers an electric medical rate and offers help with a payment assistance
program. Therefore the key question was: What combination of programs and rates does the
Utility offer to low income customers?
Administration
The core competency of the Utility is providing electricity and water services, maintenance,
billing and customer service. Although the Utility offers programs to help customers stay
current with utility payments, there are other non-profits in the community which have a much
more seasoned track record with offering this help. Input from the focus group indicated that
low income customers have the highest comfort in dealing with known organizations, where
there is convenience for completing an application and where transportation is accessible to
the point of application. Therefore the key question was: Is the Utility the most knowledgeable
and efficient administrator for low income programs?
Funding
Funding for the Payment Assistance Program has come from customer donations and funding
for the electric medical rate has been covered in the cost of service to all customers. Therefore
the key question was: How might we increase funding to cover programs that provide
assistance to more low income customers?
Conservation/Efficiency Education
Conservation/efficiency education for low income customers has been challenging to track and
measure. Low income customers often cannot pay for an audit and don’t have the disposable
income to replace old and inefficient appliances with energy efficient models and receive a
rebate. More focus is needed on how to raise awareness about resource conservation and
incentivize efficiency. Therefore the question was: How do we provide both classes/audits and
other opportunities to this segment of our community?
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Graph 10: Utilities’ Role in Supporting Low Income Customers
Scenario Forming
The project team participated in a “scenario forming” brainstorm that yielded various
combinations of roles, and therefore, various ways the Utility could structure the program.
After discussion with the project team, Scenario 2 seemed the most beneficial in terms of
meeting project deliverables and crafting a program that would meet the needs of the low
income population. Scenario 2 includes:
x A “low income electric rate” – this would have two tiers, would be income based, and
would apply to customers whose income level ranged from 0% - 50% AMI (Appendix 7:
Area Median Income).
x The Utility would administer the program in conjunction with the City Finance Office,
using the existing framework of their “rebate program” to promote and receive
applications for the “low income rate.”
x The Payment Assistance Program would serve customers who find themselves in
temporary emergency situations; marketing and fundraising enhancements might
include:
1. Adding a “round-up” option to the utility bill to the nearest dollar or a fixed
dollar amount.
2. Expanding the current customer donation campaign to include both commercial
and residential customers with outreach twice a year.
3. Working with the City Attorney to move any credits left on customer inactive
accounts to the Payment Assistance Program after a defined period of time.
Utilities Role in Supporting
Low Income Customers
Rates Administration Funding Efficiency
low income utility does all fundraising (PAF) rebates
1x/year
medical utility does none education
(3rd party admin) grants
programs funding walk-thru audits
rate utlities combo repurpose credit on (energy & water)
customer accounts $
Qualify for both
medical and low
income City 100%
combo
City does none
(3rd party admin) round up on bill
Barriers: Location of trust
Convienience (i.e. one application for all low income funding)
Transportation
NEED: Metrics
Process: Data→ Criteria→ Scenario Creation→ Recommendations
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4. Working with Utility Key Account businesses to make the Payment Assistance
Program part of their yearly charitable giving.
x Educational opportunities on saving energy and water resources would be provided to
all customers who receive assistance; a walk-thru audit would be available if all parties
agree (including landlords).
Graph 11: Scenarios for Structuring the Low Income Assistance Program (Slide from 1/27/15
City Council work session)
Recommendations
The project team recommended the following activities based on the decision making process
that selected Scenario 2. The recommendations are:
1. Utilities role is managed within four categories: rates, administration, funding and
efficiency/conservation education.
2. Low Income Assistance Program criteria was determined to be; (1) income, (2) Utilities
customer, (3) conservation/efficiency education and possible audit.
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3. Low income is defined as income between 0% and 50% of the area median income for
Larimer County. There are two systems generally used for classifying low income
program participation: the Federal Poverty Guideline and area median income (AMI).
AMI was selected for this program because the majority of local non-profits use it as the
system to determine low income program participation in our area.
4. Temporary crisis is defined as assistance available in situations where a customer could
not pay utilities because of an emergency or life-changing circumstance. This would be
offered through the current Payment Assistance Program and would be limited to $150
maximum a calendar year (could be more than one disbursement).
5. Chronic circumstance is a long-term situation with difficulty making a utility payment
due to economic hardship. A low income utility rate would offer a tiered approach
based on the area median income for Larimer County: one rate would be for customers
who fall between 0%–29% AMI; a second rate would be for customers who fall between
30%–50%. This program would be administered through the City Finance Office as an
extension of the existing rebate program.
6. Work to minimize the following barriers to receiving assistance identified by the focus
group: location of trust, convenience (one application process for several programs) and
transportation to the application site.
7. Both temporary and chronic levels of assistance include an energy/water
conservation/efficiency educational opportunity and/or audit.
8. Rates—create a low income rate that addresses chronic financial hardship
circumstances; discontinue the electric medical rate because the project team
recognized that medical rate participation would be addressed under the low income
rate guidelines.
9. Administration—Utilities manage the temporary low income support program titled the
“Payment Assistance Program” and partner with City Finance Office in the management
of the low income rate implementation.
10. Funding—Increase marketing and funding support for the Payment Assistance Program.
Next Actions
The project team identified the following next actions for the ongoing management of the
program:
x Create metrics to measure program success and determine frequency of evaluation.
x Expand efficiency/conservation education program offerings.
x Expand fundraising/marketing for Payment Assistance Program.
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Appendix 1: Project Team Benchmarking 2012
Project Team Charter
Customer Connections Department Low-Income Assistance Program
Members
Bevia Byrne
Lori Clements
René Evenson
Laurie D’Audney
Maia Jackson
John Phelan
Lisa Rosintoski
Diana Royval
Lance Smith
*Heidi Phelps/Sharon Thomas (Social Sustainability)
*Julie Brewen/Michele Christensen (Housing Authority)
Project Statement: Fort Collins City Council tasked Utilities with creating a comprehensive low-
income assistance program after the implementation of the tiered electrical rate. Based on the
current values and project efforts at Utilities, staff plans to incorporate elements of energy
efficiency and education in the program.
Objectives (S.M.A.R.T.)
1. Improve current assistance programs
2. Create a comprehensive program that addresses community needs
3. Structure program to have minimal impact on staff (CSR) time
4. Increase awareness and education or conservation among members of the low-income
community
5. Create measurable performance metrics/phased approach
6. Avoid shut-offs and reduce write-offs; intervene earlier
7. Track repeat customers
Gaps
The largest gaps that have emerged in the research process are the need for more bill
assistance, a lack of an energy efficiency element, the need to partner more with organizations
external to the City of Fort Collins to offer assistance and better communication/collaboration
between City departments.
Phase 1: Review other assistance programs run by other utilities
x Austin Energy
x Eugene Water and Electric Board
x Colorado Springs Utilities
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x Excel Energy
Summary: A strong effective program incorporates elements of education, energy efficiency,
conservation and monetary assistance.
Review current city-wide assistance programs
x Finance Department: Utility rebate program
x Recreation: Scholarship program
x Social Sustainability: Resources to partner with organizations external to the City
Summary: The program that the Finance department offers could potentially be expanded as
part of the low-income assistance program; we could also raise some awareness for it on our
website or distribute some of their printed materials at our events. The Recreation department
can offer input on how to develop applications and verify income. Social Sustainability can
provide connections city-wide of organizations to partner with and can assist with focus groups.
Review the data of current programs/community data
x 66,000 (approx. total Utilities customers) / 345 (customers helped by the Payment
Assistance Fund in 2012 ($35,100 available funds). (391 customers/ $36,300 in 2011)
x Cliff-effect: the phenomenon that often people at the lower ends of the income
spectrum may be able to get a lot of assistance, but as they work their way up towards
self-sufficiency, the benefits begin to drop off. They make too much to get help but not
enough to survive or move upward.
x 80% area median income (AMI) for Larimer County for a family of four $60,650
x 2013 median income for a family of four: $75,800
2007-2011 Census data for Fort Collins
Income ranges Families Married-couple
families
Non-family
households
Less than $10,000 3% 1.1% 16.6%
$10,000-$14,999 2.1% 0.8% 9.5%
$15,000-$24,999 6.1% 4.0% 17%
$25,000-$34,999 7.7% 6.2% 13.1%
$35,000-$49,999 10.8% 9.4% 17.5%
$50,000-$74,999 21.1% 21.2% 13.7%
This income range corresponds with 80% of AMI for Larimer County
Phase 2: Other programs that Utilities could partner with and outreach opportunities
x Social Sustainability
x Finance: expand current rebate program.
x Catholic Charities: expand current role and involvement, enlist assistance for
management of new low-income program.
x Volunteers of America: run a senior focused handyman program with emphasis on
energy efficiency.
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x Larimer Home Improvement Program: funded by social security, provide low rate loans
for energy efficiency repairs.
x Disabled Resources: run a handyman program focused on energy efficiency.
x Northern Colorado AIDS Project: assist those in need with home repairs and upgrades.
x Low-income assistance program or “fair.”
Possible funding opportunities
x Community Development Block Grants (CDBG): Federal grants that fund programs that
benefit low to moderate income persons, prevent or eliminate slums or blight, fulfill
community development needs. Up to $800,000 in potential funding available.
x Ray C. Anderson Foundation: Funds projects that support economic, environmental, and
social sustainability. Grants from $2,000-25,000.
x Community Foundation of Northern Colorado: Funds projects that inspire community
building and sustainability. Must be a 501c3 organization or a municipality.
x Fort Collins Utilities becomes a 501c3.
Phase 3: Potential scenarios for program
Option 1
x Hire temporary/seasonal employees to assist customers in filling out applications for
LEAP, Longs Peak Energy Conservation, City of Fort Collins programs.
x Customers at 50% of AMI qualify for a free home energy/water audit.
x Direct install of window plastic, light bulbs, shower heads, sink aerators, etc.
x Educational material on conservation behavior.
Option 2
x Customers at 80% AMI qualify for a free home energy/water audit.
x Depending on the income level, after receipt of audit results the customer could qualify
for certain upgrades for free or at a significantly reduced cost.
x Educational material on conservation behavior.
Option 3
x Customers at 80% AMI qualify for a home energy/water audit, an
assessment/consultation of their usage and bill history.
x Some upgrades identified as necessary in the audit could be done for free or at a
reduced cost based on income level (pricing could be developed on a sliding scale
correlated with income levels).
x Partner with other agencies that perform direct install and home upgrades.
x If the customer attends educational programs or online learning opportunities to lower
their usage they could receive credits on their bill.
Host focus groups with low-income members of the community
x Gather feedback on possible programs.
x Identify gaps in assistance in the community.
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x Discuss needs that are currently being or not being met.
x Discuss ideas and opinions on assistance needs with perspective of individuals in that
community.
Major Milestones:
x Complete summary materials to include in Council retreat packets.
x Host focus groups June/July.
x Write up final program plan by August.
x Send materials through the Council approval process August/September.
NOTE: After each milestone is completed there will be a phase gate review with core team for
continuation to next milestone.
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Appendix 2: Research and Recommendations from 2012 Project Team
Fort Collins Utilities low income program research and recommendations
Maia Jackson, Project Support Coordinator
What are we currently doing city-wide to assist low-income community members?
(applicable to Utilities customers and our program development)
Finance Department
x Sales tax on food rebate
x Utility rebate
x Property tax/rental rebate
The Finance department offers three different rebate programs to assist low-income member
of our community. The one that is most applicable to Utilities is the utility rebate. This program
offers a rebate on utilities paid during the year. It is only available to low-income seniors 65 and
older and low-income disabled residents. The amount of the rebate depends upon the number
of services provided at a particular residence/location. Electrical service only = $48.43; Water
service only = $32.14; Stormwater service only = $14.26; Wastewater service only = $17.87; or a
maximum rebate of $112.70 if all of the above services are provided by the City of Fort Collins.
Applicants need to have lived within the City of Fort Collins for one year and be a legal resident
of the United States. The income qualifications for the utility refund are set to 50% of the area
median income (AMI). This allows for an increased number of senior and disabled residents to
qualify. For reference this would be a maximum household income of $38,850 for a family of
four. This is the same income qualification level for the property tax rebate and the sales tax on
food rebate. The rebate program has set enrollment dates; the enrollment period begins on
August 1 and closes October 31. Estimated total cost of the utility rebate program is $179,000.
Finance has offered to share the current list of participants in the three rebate programs for us
to cross reference with our customer information. This will be a resource to help get an idea of
how many people might participate in the program, a place to start to set up focus groups and
a frame of reference for which parts of the community to start outreach with.
Recreation Department
The Recreation department offers a scholarship and reduced fee program for reduced income
individuals.
To qualify for reduced fee consideration, the following guidelines must be met:
x Participation in a state or federal assistance program, or income within federal low
income guidelines per most recent tax return.
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x If assistance is received through any county, state, or federal program(s), current
verification must be provided, specifying an expiration date if applicable, or obtain a
benefits report from Larimer County Human Services.
x If not on a qualifying assistance program, a copy of most recent tax return must be
attached to this application.
x Proof of Fort Collins or Poudre School District residency, including a current utility bill
showing name and address, or three other bills mailed to the same address.
x Proof of lawful presence in the United States.
The important piece to consider about the Recreation department program is how they verify
income and how they work with state and federal agencies to determine if a person meets the
qualifications to participate. If a customer is already participating in a social services program
with the county, state, federal government or Poudre School District they only need to provide
proof of their participation in this program to be eligible. Income guidelines are based on
federal income guidelines and poverty levels. Income can also be verified by tax returns or pay
stubs. If a customer applies and is not affiliated with any of the other assistance programs but
meets the income requirements, their information can be verified with pay stubs and tax
returns. Social Security is also a resource that can be utilized for income verification. Staff can
call to verify information that has been provided by customers but cannot request information
on behalf of the customers. All copies of tax returns/paystubs/any personal information is
shredded after the application is approved or denied and while it is in process it is stored in a
lockbox. Files are retained for three years per retention policy.
It takes staff anywhere from five minutes to three hours a day to process applications. They
have a check sheet for the applications that front desk personnel go over when an applicant
drops off the application. This helps with problems of missing documentation or incorrect
information which tends to add more time for the staff processing. Last year their department
processed 1,300 applications and had 3,500 individuals participating in the program.
Social Sustainability Department
Currently does not have a specific low-income assistance program of their own but they work
collaboratively with external to the City organizations and non-profits. They would like to see
more collaboration and cross-communication among internal city groups that offer assistance
programs. The department is very interested in collaborating and helping with the development
of the low-income assistance program and spreading the word once it is operational.
They had feedback on how to structure the program and how to gather ideas from the
community to ensure that what is created is actually what the population we are reaching out
to needs. They suggested hosting several focus groups in the community. We can utilize
connections with the groups that the Social Sustainability department works with, the list of
people participating in the rebate programs with the Finance department, and our own list of
customers that have accessed assistance from our existing funds/programs to create focus
groups. These focus groups would give us a well-rounded picture of the problems, the needs
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and how the people most closely affected view possible solutions. It would also provide an
opportunity to present ideas of potential programs and gather feedback.
A sliding scale program set-up was suggested for a way to address energy fixes for customers at
different income levels. Concern was expressed that the dynamic of the “cliff effect” may
become a factor in this program. This is the phenomenon that often people at the lower ends
of the income spectrum may be able to get a lot of assistance, but as they work their way
towards self-sufficiency, the benefits begin to drop off. They make too much to get help but not
enough to survive or move upward. The Utilities program should be conscious of this
phenomenon as the program is written so that we are helping the most people possible and the
ones that are in the most need. An advantage of staying mindful of this phenomenon when
writing the program is that this assistance and education could be a vehicle to help push this
group of people that are perpetually struggling out of poverty. This could provide an overall
benefit to the community: stronger community members and more energy efficient homes
with more mindful and aware occupants.
Fort Collins Housing Authority (FCHA)
In addition to administering the Public Housing and Housing Choice Voucher (HCV) programs,
they manage the Public Housing units owned by the Wellington Housing Authority, and operate
the Larimer County Housing Authority’s HCV program. FCHA manages the non-subsidized
affordable housing properties owned by Villages, Ltd. and the low-income senior apartments
located in the historic Northern Hotel.
Housing programs include:
x Housing Choice Vouchers (Section 8)
x Project-Based Vouchers
x Public Housing
x Single Room Occupancy (SRO)
x Resident Service Programs
x Villages Affordable Housing
FCHA has offered to be a resource in setting up the income verification pieces of the assistance
program. They have also offered to help with customer lists as a place to begin outreach.
What are other utilities doing to assist low-income community members?
Eugene Water and Electric Board
Contacts: Wendi Shultz-Kerns, Cash Accounting Supervisor (Runs the customer assistance
program). Is in the office Mon.-Thurs. 541-685-7074 (direct line) wendi.schultz-
kerns@eweb.org
x Education became a priority and they now split their funding; half towards energy
education and half for monetary assistance.
x Utilize incentive credits (all towards the bill cost), no cash dispensed, won’t be paid out
if they move outside of the service area, managed with different pay codes.
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x Performed a survey through an external company and found that the education
component is very important and impactful on starting lifestyle change.
x Put out an RFP, accepted bids, the Human Services Division won the bid, they then
outsourced to various local agencies that work with the low-income community in a
social service capacity. Major recommendation: model program to have “one-stop
shopping” which allows clients to apply for multiple programs in one place, offer a bus
pass etc.
x Customer calls EWEB customer service line, referred to one of the partnering intake
agencies, customer calls the agency (agency has special phone line dedicated to the
program), customer makes appointment and they are advised as to what income
paperwork they need to bring in, agency processes application (utilize a state based
system so they can see other assistance programs that the customer accesses), the
voucher is approved or denied and they sign a release approving that their account
information and energy use/consumption will be shared with the external agencies.
x There is a voucher system for each entity, each agency sends a spreadsheet in daily with
the new voucher numbers, posted to the customer account using a special pay code,
and it then charges the appropriate budget. The agencies are not given funds directly,
they are given a budget to work within and EWEB is invoiced for specific program work
only.
x Program is funded with 1% of revenue from rates, eligibility based on 60% margin
median household income, requires two in-house staff members, three energy
advocates (that provide the case management and education), and staff from intake
agencies (approximately 25 people).
x The breakdown is about 9% admin, and 15% delivery cost = about 24% cost to operate.
x Can be renewed with an intergovernmental agreement each year.
Austin Energy
Contacts: Elaine Kelly-Diaz (oversees the groups that handle the customer assistance programs)
Elaine.Kelly-diaz@austinenergy.com
Ronnie Mendoza, Customer Assistance Program Manager
x Two components to the program: The discount program which has fixed charges and
the “+1” program that offers energy assistance. They also have a free weatherization
program that is available to all customers regardless of income.
x Enrollment process: They use forms rather than automatic enrollment, this allows for
more checks and balances. Customers that qualify receive other assistance benefits
through city, county, and federal agencies. The Health and Human Services Commission
generated a list of customers that qualify because of their being a part of other
assistance programs.
x Massive outreach program to community agencies to bring them on as partners in the
program. Calls for major involvement in the community. They serve over 1,900
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households. Having strong community advocates is a major contributor to the success of
the program.
x The “+1” program is a budgeted line item, the assistance program is unrecognized
revenue, the customer charge is waived—it is approximately a $300,000 budgeted
expense
x Devote four staff members to the program: one admin, two community coordinators,
one coordinator that works specifically with medically vulnerable customers. Major
recommendation: don’t split up staff member duties, devote people specifically to the
vulnerable customers and create a sub-group in the “customer care department” whose
sole purpose is working with the customer care program.
x In house they manage the service agreements and funds, the community organizations
take care of the qualification and application processes.
x If a customer is in the discount program they are automatically eligible for the efficiency
program but at what level is determined by the energy audit, the customers usage and
personal situation.
x Not everyone receives the energy efficiency program, there is an education component
to it, energy audit, conservation, and weatherization.
Colorado Springs Utilities
Contact for Utilities: Monica Whiting, General Manager, Customer Revenue & Services
Department, Customer & Corporate Services Division, direct line (719) 668-3824,
mwhiting@csu.org
Contacts for the LEAP program: Felicia Hubbard, fhubbard@csu.org Kelly Smith,
KKSmith@csu.org
Energy Resource Center contact: Howard Brooks (ERC director) direct line 719-591-0774,
website: http://www.erc-co.org/
HEAP program contacts: Deb Mathis (program manager): dmathis@csu.org, direct line 719-668-
8509. Mark James (Deb’s manager) MJames@csu.org
x C.O.P.E. program (Customer Option to Provide Energy) is a donation program,
Colorado Springs Utilities matches up to $500,000.
x When a customer calls in for assistance customer service staff refer them to local
agencies that help to administer the program; it is a once a year opportunity for
assistance.
x LEAP program was discovered to be underutilized by Colorado Springs Utilities
customers. With further research it was discovered that the application was very
difficult and customers that should be approved were being denied because of
mistakes on applications that could have been prevented if they had guidance.
x Decided that during “LEAP season” they would hire a seasonal or temporary
employee and have a specific “LEAP desk” set up in the customer service area and
encourage customers to come in for assistance and guidance on their applications.
x The courier that picks up payments from drop boxes around the city also would
come and pick up the LEAP applications and deliver them to the county office.
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x This program immediately doubled their customers’ use of the LEAP program.
x Energy Efficiency program: They partner with the Energy Resource Center (ERC)
which is a state run program that provides energy audits for low-income customers
and will provide home improvements, customers just need to work for it a little
more.
x They will support tenants; landlords need to sign off and the ERC will negotiate with
the landlords on the cost.
x Colorado Springs Utilities program Home Efficiency Assistance Program (HEAP). They
have a contract with the ERC to run this program. It is modeled after the ERC, but
uses CSU’s criteria. Also focuses on water, not just energy; can be a tenant or owner
occupied
x The cost is built into the rate, it is a demand side management project; it is not a
subsidizing situation.
What are we currently doing as a utility?
The current assistance options Fort Collins Utilities supports and communicates to our
customers are:
x Payment Assistance Fund—Fort Collins Utilities manages voluntary customer donations.
Utility customers who have received a shut-off notice can get payment assistance once
during a 12-month period. Persons contact Catholic Charities Larimer County at
970-484-5010 to schedule an appointment. An intake worker will interview the person
and contact Utilities for information about his/her account. If the person qualifies and
money is available, he/she will receive assistance that can be credited to electric and
water accounts.
x Resource Referral—Fort Collins Utilities website recognizes United Way as a resource
for individuals who are in need of utility bill assistance.
x Program Information—Utilities customers are made aware of LEAP (Larimer County
manages). Funds are provided by the federal government and the Colorado Energy
Assistance Foundation (CEAF). Low Income Energy Assistance Program (LEAP) is a
program designed to help low-income households with winter home heating costs. If a
household is eligible for LEAP, it may also qualify for help such as minor furnace repair
or replacement of broken windows. Households must submit a written application
during the LEAP season (Nov. 1 – Apr. 30).
x Home Energy and Water Efficiency Programs—Fort Collins Utilities provides home
energy audits at substantially reduced cost, monthly reports and rebates to support
lowering utility bills in a sustainable manner.
x Program Sponsorship—Utilities customers are made aware of the Larimer County
Conservation Corps. Through a partnership with Fort Collins Utilities, Loveland Water
and Power and Platte River Power Authority, the Larimer County Conservation Corps is
offering free energy and water assessments and efficiency upgrades to qualifying
residents through March 29. The basic assessments include a visual inspection of
appliances, heating/cooling systems, and insulation levels in walls, attics and
crawlspaces. Corps members also will install free CFLs, programmable thermostats,
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retractable clotheslines, low-flow toilets, showerheads and faucet aerators and provide
conservation tips and rebate opportunities to help lower energy and water bills. The
2013 goal is to assess and complete efficiency upgrades for 250 households within Fort
Collins.
x Medical Assistance Program—This program was developed after the implementation of
the tiered rate with the recognition that some members of our community would be
pushed into a higher tier because of their dependence on certain types of high energy
medical equipment. This program is available to customers who require the use of
medically necessary equipment in their home and/or have medical conditions that
require the use of air conditioning during the summer months. To qualify for the
program the maximum household income cannot exceed 60% of the area median
income ($46,620 for a family of four), the customer needs to obtain a signature from his
or her physician stating the equipment necessary and/or verifying the need of air
conditioning in the summer months. The customer must also prove lawful presence in
the United States. Currently, we do not collect any income or tax verifying
documentation and we do not contact employers of the customer. Acceptance into this
program does not automatically renew and must be applied for annually.
What should our program look like?
x Laurie’s recommendations (emailed)
x John’s recommendations (meeting on 2/27)
x My ideas
x Recommendation 1: Offer assistance in filling out LEAP applications. In addition to LEAP,
offer assistance with the Federal Weatherization Program (currently managed through
Longs Peak Energy Conservation). This could also be an opportunity to partner with
applicable City of Fort Collins assistance programs that are Utilities related. Hire
temporary/seasonal employees and have them stationed at customer service to assist
customers in filling out paperwork. Include the Longs Peak program in that process and
offer information on any other city-wide (utility related) assistance programs.
x Recommendation 2: Ask those who need help for their feedback on what a successful,
accurate program looks like. Host two to three small, select focus groups of hand-picked
people throughout the Fort Collins community that fall into this income demographic
and would be likely to utilize such a program. Enlist the help of Social Sustainability,
Finance and the Fort Collins Housing Authority in gathering potential participants and
gathering feedback.
x Recommendation 3: Education component—bill credits (home energy audit).
x Recommendation 4: Sliding scale assistance program for home upgrades with education
component.
Focus on incorporating the “forgotten” low-income groups in our community: 50-80% of AMI--
$60,650 for a family of four in the Fort Collins/Loveland area. (Justification: contacted Ken
Waido and Timothy Wilder for specific quantitative data if it exists.)
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Appendix 3: Low Income Assistance Program Project Charter 2014
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Appendix 4: Catholic Charities Emergency Clinic 2013 Program Data
“Utilities Public Assistance Fund” is the Utility Payment Assistance Program. In addition to these funds, utility customers
received $29,000 combined assistance from the Utilities EOC (Energy Outreach Colorado), Utilities EFSP (FEMA) and Utilities
Private Funds (Catholic Charities).
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Appendix 5: Medical Assistance Application 2014
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Appendix 6: Compiled Focus Group Questions & Responses (4.29.14)
Compiled Focus Group Questions & Responses (4.29.14)
1) Is utility payment support for low income assistance an issue or need in our
community?
Big issue with many families. Utility bills high and income to pay is low; that is
why they need assistance.
Yes! Go thru $170,000 per year at CCN.
DRS: High need, lots of people come to DRS for utility assistance; they typically
can help those with disabilities—difficult because shut off is usually close, maybe
an hour away, first issue is how to stop shut off.
x Serve 6.8: 40-50 people/week ask for assistance.
x MS: EOC funds only 1x/yr. – Many requests beyond 1x/yr.
x UT: No emergency funds @ utilities.
x Medical assistance thru utilities – too low income $36,000.
x 211 highest call need.
x Housing Authority utility allowance doesn’t meet need.
x Many callers have LEAP, it isn’t enough.
x Some need is for those that don’t qualify for existing due to income but can’t
afford utilities. (High rent, all electric home, high % of income to rent.)
2) What challenges do customers who are trying to receive low income assistance
encounter?
Diversity and Transportation:
x Right language and outreach targets; Spanish-speaking need help with
application; more services in languages people speak.
x Undocumented families have equal rights.
x Transportation/Dial-A-Ride and SAINT all have limitation in the area of
transportation; just getting in to pay the late fee can be an issue; particularly
with mental illness issues that lead to procrastination.
x No dispatch-able transport system = problem.
x Transportation – to access agencies, doctor signatures.
x Need transportation to complete application.
Working With Utility:
x Can only make payment arrangements every six months and people still get
behind.
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x Have to go up Utilities Chain of Command which takes time; person answering
usually can’t do anything about it, have to explain; sometimes they pass call to
decision makers but other times not, frustrating.
x Shut off notice typically gives them 3-4 days; it is the pink slip that opens up
help.
x Seems like Utilities is more “hard core” than they used to be; very subjective
depending on who answers but appears staff has been trained more hard line
than years prior.
x Utilities – Will cut off for non-payment regardless of medical needs.
x Some clients may have been offered payment plan by Utilities but they didn’t
follow through, waiting for crisis slip (pink) to respond.
x Section 8 reimbursements are confusing on utility bill.
x N2N writes check and should reflect on individual bill.
x Utilities are concerned with frequent flier customers/abuse of the program.
Family Finances:
x Some people have no income.
x These clients are living on $700/month; A and D clients are living on
$174/month—no education is going to help in these situations.
x Credit and criminal past can be a problem.
x Problem = money, not communication gaps.
x Late fee when strapped = big issue, increases problem.
x For some, it is a money management issue; for example, people still buy
cigarettes every day.
x Shortage of resources/loan.
x Hard winter leads to more need/more issues
Funding Support Issues & Where to Go:
x United Way cut funding to DRS 75% during “Bridges Out of Poverty” campaign;
DRS clients are getting out of poverty so they don’t fit that “funding mold”
anymore.
x 211 might help, lots of questions about where to go for help.
x Not enough options.
x Not enough promotion/education about accessing donated utilities or about
how to donate to it.
x No awareness on criteria; assistance is there but not aware.
x First come, first serve. Usually run out of money – CCN.
x Where to access help – where to start.
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x Resources (community) need to be defined.
x Murphy Center and area churches are who they typically go to.
x PSS has some funds to help people in their program with Utilities.
Housing Issues:
x Market rent is the real issue, if rent were lower, people could pay utilities.
x Utilities is not the problem leading to homelessness, that is a housing issue.
x There are some cases where Utilities cost is the straw and could lead to losing
housing.
x I see the housing cost as the most challenging issue in Fort Collins. This then
causes utilities to become an issue. In a college town, most places can charge per
bedroom. It is unrealistic for a family in this town to try and make it with such
high housing costs.
x Agencies have few funds to make properties more energy efficient, especially
multi-family.
Different Populations with Unique Needs:
x Disabilities vs. those working toward self-sufficiency = different populations and
very different needs.
x Many DRS clients suffer from mental illness and other issues, may be paralyzed
by anxiety or fear so they procrastinate, increases crisis.
x There are concerns about medical equipment for DRS clients, they are not
familiar with the medical program and neither are their clients, lots of hoops to
jump through for this population.
x For some it is a temporary issue; for others it is ongoing. Create a system for
each that looks different.
Program Constraints & Marketing:
x More outreach marketing.
x Agencies want to be more proactive than reactive.
x Paperwork – system: Programs not communicating info HIPPA.
x Assistance 1 X annually.
x Time – crisis mode issue; working with agency system.
x Limited appointment availability. “Hoops” customers need to jump through to
get assistance (Call every day. Lottery, Mon-Thurs. afternoons.)
x So few DRS clients have registered their medical equipment.
x No one stop shot for assistance; time intensive for agencies and customers.
x Most DRS clients do not have computer access to pay online.
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3) What kind of reasons could be associated with receiving low income utility payment
assistance?
Financial
x Low income (wages)/financial situation/no income.
x Priorities: rent, utility, food; downsize when income diminishes; determining
what is important; making trade-offs to pay other bills.
x Elderly – fixed income.
x Unexpected expenses – car, layoff, medical, job loss, death in family, natural
disasters.
x Medical/mental health issues, disability, hospital stay, no family-support to help,
large medical crisis, get behind on bills and can’t catch up, shortage of payees in
Fort Collins—Touchstone has a few but not enough.
x Increase in utility use/cost.
x Shift of cost (help for utilities but not for car repair).
x High rent.
x Lack of money management skills; poor planning abilities; people wait until last
minute.
x People access lots of funds, some on a schedule; Are people depending on help
to pay every month?
x Landlords regulate utilities.
Family Changes
x Single parents; divorce.
x Larger household with kids/grandkids or aging parents.
x Health reasons.
4) What should Utilities’ role be in supporting low income assistance for utility
payments?
Working with Other Organizations:
x Partnerships with organizations/agencies that support low income; can explain
better and better access; distribute funding; understand language, culture and
sensitive to assistance.
x Know where low income population is going to for help.
x Work with health agencies; going beyond.
x Non-profit can validate/investigate; income verification concern for Utility.
x They are trained to work with these clients in a humanizing manner.
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x Maybe a liaison for agencies when they call Utilities, a title to ask for? Some way
to save time.
x Train Utilities staff to work with agencies.
x Collecting customer donations and contracting vendor to appropriate funds or if
there is an existing organization to appropriate funds with guidelines of
assistance (round up on bill? Corporate sponsors?).
x Example: Project Cope/Colo. Springs.
Energy Conservation & Education:
x Education on how to conserve and be energy efficient (requirement for
assistance).
x Education about budgeting.
x Educating agencies.
x Rebate programs for efficiency for landlords/owners who add efficiency
measures (insulation) when remodeling (program requirements are issue).
x Utilities could give more aid for larger homes.
x Require energy audit for aid? (Who would pay?)
x Educational awareness on utility usage. When to use appliances or how simple
tasks like window plastic, turning off lights, how to use thermostat, etc. can save
money.
x Referring customers to payment assistance organizations who educate on
budgeting, employment, housing and medical needs. City’s web site offering
listing of various organizations (with disclaimer).
Program Design:
x More info on client account.
x Collect $/fundraise for project.
x Client realization that City is providing assistance.
x Utilities manage $; challenge is the administration of the money; designated
fund.
x Providing or supporting centralized customer information system for customer
convenience as they seek assistance. Database or site with access from
assistance organizations or customer access.
x Computer in lobby for customer assistance access (restrictions on access).
x Variations across agencies might be an obstacle.
x Agency – intake, 1 x/year.
x Review annual aid amount? More than $150.
x Program for people with zero income.
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x Create a pool of money to apply for Project Self Sufficiency.
x Is there a way to trigger Utilities that someone is in the hospital? A plan that can
be worked out for that? Issue: There are not enough advocates. Utilize retirees?
x Tracking of reason for assistance for statistical purposes would be helpful in
determining community needs.
x Exceptions – when come into play?
x Behavior vs. circumstance; entitled vs. folks truly trying to support themselves.
x Utilities to disperse $ for distribution thru credible agencies.
x Education re: existing resources.
5) What should a successful low income utility payment assistance program look like?
How would you measure success?
What a Program Could Look Like:
x Easily accessible with information and languages.
x Education assistance.
x Give money with commitment to visit home to review utility support/education
(how to manage renters).
x Give more resource options to low income utility support such as food, home
repairs, etc.
x How to support rental properties with owners “comply with building efficiency
and conditions”; how to enforce.
x Quality of tracking difference. For example, tracking utility use before and after
(audits).
x Partnership with LCCC.
x % of funds to address root cause.
x Round up on utility bill.
x Other collaboration; free energy saving devices.
x Is it a discount rate? Issue is that there are always those in crisis. Some DRS
clients would benefit from a discount.
x Discount doesn’t alleviate crisis issues.
x Different populations need different plans.
x Work with landlords to include utilities = they know what they are getting into
x Example= Legacy Apartments.
x Taking physical & mental health into consideration.
x Need resources to help with all needs to achieve a balanced life rather than
living day to day.
x Social Sustainability Summit? Resource fairs for needs?
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x Effective communication/updates on organizations with current funding.
x Transportation referrals (SAINT or bus availability) – the most frequent obstacle
in getting assistance according to 211; work with transportation for shuttle.
Measure & Communicate Success:
x Amount or # coming in to ask for assistance.
x Raise awareness.
x Measure of success should be by number of involuntary shut-offs and/or notices
(decrease).
x Number of households assisted each year.
x Data on repeat assistance customers, year after year with likelihood of repeat
assistance need. Collect metrics (reasons); what is triggering requests?
x Education tracking and impact on assistance needs (surveys after assistance
awarded).
x Monitoring assistance. For example, how results saving compared to before
assistance; bill reduction monthly vs. crisis mode.
x Education assistance.
x Communicate success to donors and receivers; better utilization of social media.
x Market to people who have auto debit.
x Get more people to contribute; marketing to businesses.
x Define success.
x True outcomes take time.
x Define parameters of who should receive assistance.
x All work together to accomplish same thing.
6) Other comments/observations you believe are relevant to a utility low income
assistance program.
x Lack of knowledge about utility assistance program.
x Need to partner better.
x Make sure we run out of funds!
x Sense calmness from receiving support. Not to worry having utility. Need to
continue to offer calmness to more people.
x How do you know how much to give? (good question)
x Walmart with donations and partnerships.
x Utility low income open house.
x Helping people who cannot attend.
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x Anything needed to strategically manage funds – PAF & EOC (look at water turn
offs).
x Educate owners on including water in rent.
x Second donation campaign to cover water in summer.
x Verify income?
x Clarify “low income” and boundaries for the program.
x Crisis need as opposed to “abusing” the opportunity.
x PS-S recommended studying Loveland’s program—she said it works very well.
Questions:
x What happened to REACH program?
x Did LEAP replace REACH?
x How is the current program advertised and how do people contribute?
x Should there be some system change to alert but allow more time for crisis
response? (i.e. the doorway to help is also the roadblock)
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Appendix 7: Larimer County Area Median Income 2013
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Appendix 8: Bill Insert/Envelope for Payment Assistance Campaign 2014
Utilities – Energy Board
700 Wood St.
PO Box 580
Fort Collins, CO 80522
970.221.6702
970.416.2208 - fax
fcgov.com
M E M O R A N D U M
DATE: May 3, 2016
TO: Mayor Troxell and City Councilmembers
FROM: Peter O’Neill, Energy Board Chairperson
RE: Utilities Low Income Assistance Program – Income Qualified Rate (IQR)
The Energy Board received a presentation from the Utilities Customer Connections and Strategic
Financial Planning staff at our February 4 regular meeting detailing the proposed Low Income
Assistance Program, including the Income Qualified Rate (IQR), scheduled to be presented to
City Council work session on June 14, 2016.
The Energy Board has previously received presentations on the Low Income Assistance program
and supports the implementation, as the Low Income Assistance Program will provide a rate
structure that supports conservation. The board unanimously supported the Low Income
Assistance Program implementation.
On behalf of the Energy Board,
Peter O’Neill, Chairperson
Fort Collins Energy Board
cc: Darin Atteberry, City Manager
Kevin R. Gertig, Utilities Executive Director
Tim McCollough, Light & Power Operations Manager
DocuSign Envelope ID: 85049421-36C4-4334-8C04-E27E66AFCB19
ATTACHMENT 2
ATTACHMENT 3
ATTACHMENT 4
1575 Sherman Street, Denver, CO 80203 P 303.866.5700 www.colorado.gov/cdhs
John W. Hickenlooper, Governor | Reggie Bicha, Executive Director
May 23, 2016
Dear Members of Ft. Collins City Council:
The Colorado Department of Human Services Low Income Energy Assistance Program
(LEAP) is pleased to offer support for the concept of an electric discount rate for low-
income customers of Fort Collins Utilities. The mission of LEAP is to assist vulnerable
Coloradans with paying their home heating costs and provide repair and/or
replacement of furnaces to assure a safe, healthy, and warm environment.
LEAP believes that a partnership with Fort Collins Utilities aligns with the mission of
LEAP and will be an excellent way to address the high energy burden that many of
your low-income households struggle with through strengthening the system of utility
assistance available to customers in Larimer County. A discount rate is a strong
supplement to the assistance LEAP provides and partnering provides opportunities for
collaboration and enhanced outreach opportunities to reach more Fort Collins Utilities
customers. In addition we believe a LEAP partnership is in the best interest of Fort
Collins Utilities rate payers.
Please let me know if you have any questions. We look forward to working with staff
at Fort Collins Utilities to assist the most vulnerable Larimer County households meet
their basic needs.
Sincerely,
Aggie Berens
Aggie Berens
LEAP Manager
City of Ft. Collins City Council Members
281 N. College Avenue
Ft. Collins, Colorado 80524
ATTACHMENT 5
225 E. 16th Avenue, Ste. 200, Denver, CO 80203-1612
Tel: 303.825.8750 Fax: 303.825.0765 www.EnergyOutreach.org
February 5, 2016
City of Fort Collins City Council Members
281 N College Ave.
Fort Collins, Colorado 80524
Dear Members of Ft. Collins City Council:
Energy Outreach Colorado (EOC) is pleased to offer support for the concept of an electric
discount rate for low-income customers of Fort Collins Utilities. EOC is the only independent,
non-profit organization in the state raising money to help limited income Coloradoans afford
home energy. Since it was established in 1989, EOC has raised more than $231 million to fund
energy bill payment assistance, energy efficiency upgrades for affordable housing and non-
profit facilities, and advocacy on behalf of low-income energy consumers.
EOC has been pleased to partner with Fort Collins Utilities to serve your vulnerable utility
customers. In 2015, EOC helped 485 families with their Fort Collins Utilities’ bills totaling more
than $100,000 in assistance, a 24% increase over 2014. We estimate that our assistance
helped only 5% of the actual eligible low-income population in your community. While energy
efficiency programs and access to solar energy are strategies that EOC is pursuing (in
partnership with Fort Collins Utilities) to help reduce vulnerable families’ energy costs, we have
also advocated for innovative rate design, including a low-income discount rate, as a critical
solution to help families reduce their energy burden and improve their affordability of other
necessities. In fact, EOC was the organization that worked to promulgate the rules at the
Colorado Public Utilities Commission for the current Percent of Income Programs that exist with
the investor-owned utilities in Colorado. We support Fort Collins Utilities use of a similar
approach in its proposal for a discount rate for low-income customers.
Here are some facts –
x Over one in four Colorado households are faced with home energy insecurity and have
trouble paying their energy bill.
x The cost of home energy regressively impacts low-income households. Vulnerable
households pay a significantly higher portion of their income than non-low-income
households to heat and light their homes.
x The inability to pay for home energy severely impacts a household’s capacity to pay for
food, medicine, medical care and other necessities. Because payment for gas and
electric utility service is a top priority, in order to maintain utility service and stay in their
home, low-income households do without necessities that most of us take for granted.
x The National Energy Assistance Directors Association recently published a report that,
based on a survey of households that received LIHEAP assistance, indicated the
following
o 45% of households went without medical or dental care
o 38% went without filling a prescription or taking the full dose of a prescribed
medicine
o 32% of households went without food for at least one day
o 44% closed off part of their home in order to save energy
o 33% used unsafe methods to heat their homes
ATTACHMENT 6
EOC believes that a discount rate for low-income households serves the interest of Fort Collins
Utilities and its customers. Reduced collection costs and continuity of service provide benefits to
the entire system. Affordable energy is critical to the wellbeing of our most vulnerable neighbors.
A discount rate for vulnerable households in Fort Collins will help ensure that low-income
citizens can stop sacrificing other absolute necessities and live in a safe and healthy home.
EOC monitors innovative energy policies on a national level and is keenly aware of Fort Collins
Utilities’ position as an innovator. We believe the inclusion of a low-income discount rate among
the package of programs and services that you provide your customers is a model action and
one we hope will be replicated across Colorado.
Please let me know if you have any questions. Again, congratulations to your Utility staff for
their compassion and concern for your vulnerable customers.
Sincerely,
Skip Arnold
Executive Director.
Utilities – Water Board
700 Wood St.
PO Box 580
Fort Collins, CO 80522
970.221.6702
970.416.2208 - fax
fcgov.com
M E M O R A N D U M
DATE: June 6, 2016
TO: Mayor Troxell and Councilmembers
FROM: Brett Bovee, Water Board Vice Chairperson
THROUGH: Darin Atteberry, City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Comments on Income Qualified Rate Concept
At the City of Fort Collins Water Board Work Session on June 2 the Board heard a presentation
by Utilities Customer Connections Manager Lisa Rosintoski on the proposed Income Qualified
Rate (IQR) program. Fort Collins Utilities is currently considering a two-year IQR pilot program
in 2017 and 2018. Members of the Water Board would like to submit the following comments to
City Council as they consider the IQR program at their upcoming Work Session.
These comments were compiled from multiple Water Board members and represent a range of
opinions and ideas. Overall, Water Board members were supportive of the IQR program, and
most comments focused on how the program would be implemented.
x The planned IQR program does not include stormwater fees, and perhaps it should. Staff
stated that stormwater fees were not included because they are not tied to water
conservation efforts underlying the IQR program. Some Water Board members maintain
that stormwater should be included for program discounts.
x The discounts to be applied to customer’s bills are based on the difference in utility costs
(as a percentage of income) between “average” and “low income” households in the Fort
Collins service area. Utility costs for low income households average 4.6% of income
while utility costs for average income households average 2.6%. The IQR program would
provide a discounted utility bill based on this 2.0% difference. The data underlying this
discount is based on Fort Collins customers, but perhaps more fundamental questions are:
(1) What is a reasonable amount to pay for utility service, and is 4.6% beyond that
reasonable amount when compared across the Colorado Front Range and nationally? (2)
Should the discounts be based on a broader dataset (regional, national) of what an
acceptable or reasonable utility bill should be, rather than just Fort Collins data?
x Instead of having a simple discount plan depending on your median household income,
Utilities might consider a graduated discount plan. This type of plan would provide the
greatest discounts to the lowest income customers. If not a part of the pilot program, it
should at least be considered for any more permanent IQR program.
DocuSign Envelope ID: 7D8C6668-88A8-48D3-9A57-875DF8EF0E96
ATTACHMENT 7
x The pilot program should be evaluated in terms of increased water use, cost of the bill
discounts, and other factors at the household level. As a type of water conservation
program, a Cost-Benefit Analysis should be performed comparing the cost effectiveness
of a discounted utility bill versus incentivizing more efficient water and electric usage
with rebates or direct installs. This is important to do at the household level, and the pilot
program should require that IQR program participants allow Utilities to collect, monitor,
and publicize (for reports, using normal protections for privacy) household specific data.
In this way, Utilities provides the benefit of a discounted bill in exchange for data that
will go towards the public good of understanding the issues and solutions.
x Utilities might also consider whether a more aggressive graduated block (or tiered) rate
structure would achieve the same goals as the IQR program. The two goals of reduced
water use and lower monthly bills could be provided by making the lowest tier less
expensive and higher tiers more expensive.
x The pilot program might further incentivize water conservation by requiring IQR
program participants to participate in existing Utilities water conservation programs, such
as rebates for low water use fixtures.
x Beyond the pilot program, a more permanent IQR program should probably focus on
meeting the most basic household water uses, and not people with large lawns and
landscapes. The IQR program should focus on meeting “tier 1” water uses and not
discount bills for high outdoor water uses. Data should be collected during the pilot
program to better identify how participants are benefitting.
x The IQR program is currently planned to be coordinated with the LEAP program, to save
costs and make enrollment easier and more efficient. There is likely to be confusion
because the Utilities service area does not align with the LEAP program area. At this
time, it is unclear if the other two water districts serving Fort Collins would be interested
in an IQR program, and perhaps results of this study should be shared with these other
water districts.
x Any discussion about utility rates needs to be as transparent as possible. Ratepayers
should understand their monthly bill, and the details of what they are paying for. This
could connect to water budget rate structures, tiered rate structures, fixed cost payments,
etc. The IQR program could be a small piece of a broader effort to make all “costs” more
transparent on the utility bill. This type of transparency could also help to understand
differences between water costs (bills) for the three water districts serving the Fort
Collins area.
x City staff should identify the costs and source of funds for the IQR program, addressing
items such as “the pilot program will be paid for with…” and “the program will result in
rate increases for most customers, and we would expect this rate increase to be…”
x There is a basic question of whether income inequality concerns are really in the purview
of Fort Collins Utilities?
DocuSign Envelope ID: 7D8C6668-88A8-48D3-9A57-875DF8EF0E96
I hope these comments prove helpful during your discussion of the IQR Program. Please contact
the Water Board with any clarifying questions or follow-up comments.
DocuSign Envelope ID: 7D8C6668-88A8-48D3-9A57-875DF8EF0E96
6/8/2016
1
06.14.16
Utilities Income Qualified Rate
Lisa Rosintoski, Customer Connections Manager
Randy Reuscher, Pricing Analyst
1
ATTACHMENT 8
6/8/2016
2
City Council Outcomes
Direction sought and questions to be answered:
1. Does City Council support the concept of an Income-Qualified Rate
as presented?
2. Are there areas of concern staff has not addressed?
2
6/8/2016
3
3
2004
Payment
Assistance
Fund
Established
2012
Medical
Assistance
Program
2014
Comprehensive
Review of Low-
Income
Assistance
2015
Implementation
Strategy of Low-
Income
Assistance
Program
2016
Implement
Low-Income
Assistance
Program
Portfolio with
Income-Qualified
Rate
Low-Income Program Evaluation
6/8/2016
4
Our Role as a Utility
4
Efficiency and
Conservation
Education
Rates
Funding
Administration
Efficiency and
Conservation
Education
Funding
Rates
Develop Income-
Qualified Rate
Enhance Payment
Assistance Fund
Ongoing
Temporary
6/8/2016
5
5
Low-Income Assistance
Integrated Approach
6/8/2016
6
Data: Community Need
Approximately 16%
or 9,000 customers
Area Median Income
~ $64,000
6
6/8/2016
7
2.0%
1.3% 1.3%
0.7%
1.3%
0.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
165% FPL AMI
% of Income
Income Threshold
Utility Costs as % of Income
Electric Water Wastewater
Avg Bill
~$48
Avg Bill
~$62
Avg Bill
~$30
Avg Bill
~$32
Avg Bill
~$34
Avg Bill
~$32
Data: Utility Costs
2.6%
4.6%
Reduce
percentages to
align with AMI
7
6/8/2016
8
Rate Implementation Strategy
Income-Qualified Rate (IQR)
• Proposed utility rate discounts
• Customers at or below 165% of Federal Poverty Level (FPL)
• Electric – 35% discount
• Water – 45% discount
• Wastewater – 50% discount
• Rate design objective – lower the utility costs for these customers to align with the
% of income spent on utilities as the area median income (AMI) household
• Customers must apply for discount annually and meet qualifications for Low-income
Energy Assistance Program (LEAP)
8
6/8/2016
9
Data: Utility Costs
$335,271
$670,542
$1,005,813
$1,341,084
$57,679
$115,358
$173,037
$230,716
$96,309 $192,618
$288,926
$385,235
$‐
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
25% 50% 75% 100%
Fund Impact
Enrollment %
Potential $ Impact by Fund
Electric Water Wastewater
$489,259 $978,518 $1,467,776 $1,957,035
~0.28% of revenue ~0.55% of revenue ~0.83% of revenue ~1.14% of revenue
Based on other community’s enrollment levels and IQR planned outreach strategy, enrollment is
expected to peak at 60-70%
Estimated overall impact
of ~$1.3M
Estimated overall impact
of ~$1.3M
9
6/8/2016
10
Community Outreach
• Mass Communication
• Traditional execution
• Targeted Communication
• Deliberate outreach (letters, presentations, etc.)
• Stakeholder Collaboration
• Social Sustainability and Neighborhood Services
• Government Partners
• Nonprofits
• Education and Direct Installs
• Larimer County Conservation Programs
• Neighbor to Neighbor Homeowner Education
10
6/8/2016
11
Plan, Do, Check, Act
Staff Commitment:
1. Two Year Pilot - 2017 through 2018
2. 2019 present results to City Council
3. Measures for success
a. Participation
b. Efficiency Projects
c. Conservation
11
6/8/2016
12
City Council Outcomes
Direction sought and questions to be answered:
1. Does City Council support the concept of an Income-
Qualified Rate as presented?
2. Are there areas of concern staff has not addressed?
12
Next Steps
• Prepare rate ordinance for consideration at the August 16
City Council meeting as part of the consent calendar.
• If the rate ordinance is approved, launch community
outreach campaign.
13