HomeMy WebLinkAboutWORK SESSION SUMMARY-01/30/2018-Work SessionUtilities
electric · stormwater · wastewater · water
700 Wood Street
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 – fax
V/TDD 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: February 2, 2018
TO: Mayor Troxell and Councilmembers
FROM: Lance Smith, Utilities Strategic Finance Director
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: January 30, 2018 City Council Work Session Summary - Income Qualified
Rate (IQR)/Low-Income Efficiency Programs
Dianne Tjalkens, Pete Iengo, and Randy Reuscher presented recommendations on a Utilities
Income Qualified Rate (IQR). All Councilmembers were present, with Councilman Bob
Overbeck on teleconference. Purpose of Work Session was to obtain feedback and further
direction on a funding source.
City Council Comments
Overall support for income qualified rate effective October 1, 2018, supporting Time of
Use rate, that could achieve a net benefit to the ratepayers.
Concern about starting a subsidy at a participation level too high; makes it hard to reduce
later.
Prefer a program that looks and focuses on the structures—more energy efficient
structures in the community versus a discounted rate.
Support for direct install of conservation equipment—lightbulbs, low-flush toilets,
weatherization, etc.
Support for active energy management with time-of-use rates that can more readily use
the information to assist low income.
Incentivize the program in a way that gets landlords/property owners interested in making
energy efficiency improvements.
DocuSign Envelope ID: 27C1B133-FEDB-41DE-A536-78A22634E527
2/1/2018
2/1/2018
2/5/2018
2/5/2018
Key Discussion Points
Need to set clear goals and targets – what can we achieve – that illustrate benefits both to
participants and rate payers.
Talk with other water providers before moving forward with discount for water and
wastewater rates.
Consider whether to start with only a reduced electric rate.
Significant concern about focusing too much on rate reduction versus energy efficiency
that results in sustainable benefit in the community.
Concern about sustainable funding source as program scales to meet community need.
Next Steps
Need clear goals and measures that quantify benefits to participants and rate payers;
determine success metrics for a discounted rate and for energy efficiency long-term
benefits.
Discuss with water districts if and how they provide income qualified discounts for water
and wastewater services before moving forward with water and wastewater rate
discounts.
Verify individuals cannot “game” the system, thus taking away from the individuals that
really need the program.
Demonstrate outcome of program is long-term energy efficiency improvements.
Need a chart that includes the Low-Income Energy Assistance Program (LEAP)
contributions in the overall stack.
Utilize the Council Finance Committee, Futures Committee, and/or consider Council
members working with staff on program deliverables.
CC: Lisa Rosintoski, Utilities Customer Connections Manager
Randy Reuscher, Utilities Rate Analyst
DocuSign Envelope ID: 27C1B133-FEDB-41DE-A536-78A22634E527