HomeMy WebLinkAboutMemo - Mail Packet - 3/9/2021 - Memorandum From Theresa Connor Re: Appropriating Platte River Power Authority One-Time Cash Distribution For Customer Payment Assistance
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Utilities
electric · stormwater · wastewater · water
700 Wood Street
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 fax
970.224.6003 TDD
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: March 4, 2021
TO: Council Finance Committee
FROM: Theresa Connor, Interim Utilities Executive Director
THRU: Darin Atteberry, City Manager
Kelly DiMartino, Deputy City Manager
Travis Storin, Chief Financial Officer
RE: one-time cash distribution for
Customer Payment Assistance
BOTTOM LINE:
To provide utility assistance to customers with COVID-19 driven past-due balances and before
the City reinstitutes disconnects for non-payment, the appropriation of a -time cash
of $468,941 from Platte River Power Authority (PRPA) is scheduled for
consideration at the March 16 City Council meeting, in lieu of being discussed at the Committee
level. These funds will assist the rate impact that significant past-due and uncollectible balances
are likely to have on all electric ratepayers.
BACKGROUND:
Staff will provide a report at the March 16 City Council meeting on the state of delinquent
accounts and the approach to resuming disconnections for past due customers. Monthly updates
will be provided to Council on the status of delinquent accounts. The first such report was
provided on February 25, 2021 and is attached. Having a robust assistance package to provide
relief to customers impacted by COVID-19 is critical to assisting the community through
recovery. The PRPA funds will be one component of the overall assistance package. An
ordinance appropriating the cash distribution to the L&P fund will be on the consent agenda for
first reading on March 16.
In December 2020, -
funds were distributed under the Organic Contract Establishing Platte River Power Authority as
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revenues of Electric Utility Enterprise. These funds will only be used to assist customers with
past due electric charges with the other past due charges being addressed through other funding
such as PAF and any federal funding that may be coming.
City Staff recognizes that such ordinances are normally brought before the Council Finance
Committee (CFC) before being considered by the full City Council. Given the nature of the
appropriation from an unanticipated - from PRPA and the urgency of
assisting those customers who have been impacted economically by COVID-19, a decision was
made to bring the appropriation ordinance forward now. In turn, knowing this appropriation can
be discussed with the CFC before the Second Reading of the Ordinance at the April meeting.
Utilities
electric ·stormwater ·wastewater ·water
222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE:February 25, 2021
TO:Mayor Troxell and Councilmembers
FROM:Lisa Rosintoski, Customer Connections Deputy Director
Lance Smith, Utilities Strategic Finance Director
THROUGH:Darin Atteberry, City Manager
Theresa Connor, Interim Utilities Executive Director
RE:Utility Delinquent Accounts & Financial Assistance Monthly Update
Bottom Line: As our community continues to navigate the effects of the COVID-19 pandemic,
Fort Collins Utilities has not disconnected utility services due to non-payment since March 2020
and has not confirmed a date to reinstate disconnects. In accordance with the current Governor
moratorium, we are not charging late or reconnection fees to delinquent accounts. Payments for
utility services are essential to continue delivering reliable and high-quality electric, water,
wastewater, and stormwater services. Utilities staff plans to provide an update to City Council
on utility delinquencies the fourth Thursday of each month through June 2021.
Delinquent Account Status Including Revenue:
The number of delinquent accounts fluctuates each month. The graph above is an example of the
utilities uncollected past-due revenue related to the increase in delinquent accounts. The graph
shows that the pandemic has caused hardship for many of our utility customers, and our
delinquent account numbers have increased significantly, also impacting utility revenue. Utilities
typically writes-off about $300,000-600,000 each year in uncollected revenue as bad debt due to
delinquency. However, due to the City lien ordinance Utilities may collect the debt once the
property is sold.
Outreach and Financial Assistance Provided to Delinquent Accounts:
In 2020 through CARES Act funding and the Payment Assistance Fund, Utilities has been able
to provide $900,000 of financial assistance to help customers who have struggled to pay their
utility bills. Outreach has included mailings, emails, and phone calls to advise them of the
available funding.
Each delinquent account is receiving a monthly notice encouraging them to contact Utilities
immediately and informing them of their options:
Pay your bill.
Set up a payment arrangement.
Utilize the Payment Assistance Fund
Our hope is that as additional financial assistance becomes available the notice will be updated.
Financial Assistance Being Considered:
Currently, Utilities is waiting on crucial decisions to be made regarding state and federal
stimulus packages, such as financial assistance for delinquent accounts could come from utility-
led programs and third-party nonprofit organizations. The biggest unknown at this time is
Biden’s American Rescue Plan and financial assistance that will be available for utility
assistance. Below is a summary of financial assistance.
$119,397
$86,751
$323,591
$44,727
$547,647
$28,262
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2018 2019 2020 2021 ytd
Financial Assistance
PAF CARES
Utility Led Financial Assistance
Payment Assistance Fund
(unclaimed funds only)
$231,745 Council would need to change City Code to
redistribute funds, which could consist of
modifying Code to allow the Chief Financial
Officer’s regulations to manage. Donations
from public would not be used for this
purpose.
Platte River Power Authority Gift $468,941 City Manager’s Office determining allocation
and emergency declaration orders to support
distribution.
Remaining CARES Act funding $270,000 As of 2/16/21
Third Party, Non-profit Led Financial Assistance
CARES Act
Energy Outreach Colorado
(La Familia, Catholic
Charities, Discover
Goodwill, Colorado State
University)
$2.5M
Statewide
Funds for utility one time assistance, $1k per fuel
source, no LEAP requirement at this time,
customer needs to have an electric account, dollars
need to be spent by 6/3/21
CARES 2.0
Neighbor to Neighbor
(working with other
nonprofits, more details to
come)
$10.7M
Larimer
County
Funds for rent and utility assistance were
provided to Larimer County, dollars need to be
spent by the end of 2021, distribution expected to
begin mid-March
What Are Other Utilities Doing?
As we look to our utility colleagues to see how they are handling delinquent accounts and
support their administration remains closely related to ours. However, we have learned most
utilities have resumed disconnects including Xcel, Black Hills Energy, the City of Loveland,
Colorado Springs Utilities, the City of Fountain, and the Town of Estes Park. Like us, the City of
Longmont has not resumed disconnections in hopes of more funding to provide financial
assistance.
CC: Lori Clements, Utilities Customer Care & Technology Manager
Gretchen Stanford, Utilities Community Engagement Manager