HomeMy WebLinkAboutMemo - Mail Packet - 3/20/2018 - Memorandum From Lance Smith And Lisa Rosintoski Re: Memo 1 Of 2: Income Qualified Assistance Program (Iqap), FormerlyUtilities
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222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 – fax
V/TDD 711
utilities@fcgov.com
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M E M O R A N D U M
DATE: March 15, 2018
TO: Mayor Troxell and Councilmembers
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
FROM: Lance Smith, Utilities Strategic Finance Director
Lisa Rosintoski, Customer Connections Manager
RE: Memo 1 of 2: Income Qualified Assistance Program (IQAP), formerly Income
Qualified Rate, Implementation Strategy with Modified Discount Approach
This memo is the first of two memos that provides details on a revised approach to the Income
Qualified Rate presented at the January 30 City Council work session, and discussions with Mayor
Pro Tem Horak and Councilman Cunniff. This memo will provide the details on the implementation
of the IQAP as a customer assistance program, including modifications on the discount approach,
efficiency and conservation participation elements, and creating a program that can be phased-out
over time based on participants’ dwellings achieving sustained utility bill savings.
In addition, after further discussions with the City Attorney’s Office, we recommend refocusing the
Income Qualified Rate as the Income Qualified Assistance Program (IQAP).
Bottom Line:
Utilities shall implement an Income Qualified Assistance Program that results in reasonable utility
bill affordability for qualifying low-income participants that “opt-in.” The IQAP program will be a
three-year phased approach to provide data to City Council that demonstrates the following utilities
purpose goals:
1. Ensure the discount applied recognizes natural gas costs, Low-Income Energy Assistance
Program (LEAP) financial benefits, and other programs designed to offer similar benefits to
IQAP qualifying participants. Thus, the overall IQAP discount is lower, requiring less
funding from Utilities reserves than initially anticipated for the program.
2. Achieve sustainable savings in Fort Collins dwellings long-term as data demonstrates
increased adoption of efficiency and conservation at the IQAP participant address.
3. Demonstrate efficiency and conservation actions by participants that improve dwelling to
retain IQAP eligibility; for the three-year phased approach, which can include decreased
usage and/or attending education opportunities.
4. Inventory the IQAP participants locations to create a verifiable understanding of low-income
efficiency and conservation locations to address regular outreach and monitoring of dwelling
improvements.
5. Use three-year phased data to determine penetration of IQAP towards efficiency and
conservation results.
DocuSign Envelope ID: 630AAF02-1012-4DD2-AD09-110B12A85B5D
6. Partner with LEAP and include thorough screening that minimizes IQAP being used
inappropriately by non-qualifying participants.
Summary:
Utilities’ proposed strategy for implementing the IQAP based on the modified discount approach
with efficiency and conservation outcomes as part of an IQAP rate ordinance shall be:
1. Manage a three-year phased approach to gather and analyze data prior to presenting long-
term recommendations on participation criteria.
2. Initial rate implementation on October 1, 2018, at the same time as time-of-day rate
implementation.
3. Gather data from IQAP participants and other stakeholders to understand communication
preferences, program accessibility and ownership that inform efficiency and conservation
strategies and tactics for the low-income segment.
4. Expand existing, and develop new, long-term low-income segment efficiency and
conservation strategies and tactics that leverage IQAP to increase participation.
5. Administer IQAP qualification through the Low-income Energy Assistance Program to
ensure a streamlined customer application process, minimum administrative burden, and
maximum leverage of LEAP assistance dollars.
6. Rate designed to establish equitable cost impacts for customers earning 165% Federal
Poverty Level (FPL) in relation to customers earning 100% of the Area Median Income
(AMI).
7. Base annual eligibility on “opt-in” process.
8. Apply the IQAP discount amount of 23%, compared to the original 42% discount proposed,
based on:
a. Original costs to calculate IQAP discount were electric, water and wastewater;
updated analysis includes natural gas.
b. Original savings calculation related only to the IQAP discount. Updated analysis
includes savings from LEAP assistance, efficiency installations and active energy
management education opportunities.
9. IQAP driven efficiency targets:
a. Basic retrofits: 5,000 premises by year 10
b. Deep retrofits: 1,000 premises by year 10
c. Active Energy Management Education: all participants annually by year 4
10. After dwelling has achieved a determined optimal savings, based on an efficiency and
conservation audit, then IQAP participation is no longer needed for low-income customer at
that dwelling because sustainable billing savings have been achieved.
Next Actions:
Utilities will prepare a City Council consent agenda item for an IQAP ordinance that combines
memo 1 and memo 2 for the April 17 City Council regular meeting. The recommended effective
date, in alignment with the time-of-day rates, is October 1, 2018.
C: Randy Reuscher, Utilities Rate Analyst
John Phelan, Resource Conservation Manager
Pete Iengo, Utilities Program Coordinator
DocuSign Envelope ID: 630AAF02-1012-4DD2-AD09-110B12A85B5D