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HomeMy WebLinkAboutMemo - Mail Packet - 12/4/2018 - Memorandum From Lisa Rosintoski Re: Time-Of-Day (Tod) Residential Electric Pricing Billing ConcernsUtilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.212.2900 V/TDD 711 utilities@fcgov.com fcgov.com/utilities DATE: November 29, 2018 TO: Mayor Troxell and Councilmembers FROM: Lisa Rosintoski, Utilities Deputy Director, Customer Connections THROUGH: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Kevin Gertig, Utilities Executive Director RE: Time-of-Day (TOD) Residential Electric Pricing Billing Concerns Bottom Line: Fort Collins Utilities staff met with the customers who attended the November 20 City Council meeting to understand their billing concerns as related to usage between the previous tiered rate structure compared to the TOD rate structure. In both instances, the customers’ usage increased significantly, resulting in a higher electric utility bill. TOD was not the driver for the electric bill increase. In addition, staff is managing concerns with billing formats, e.g., showing bill history, and TOD details on the back of the paper utility bill. It is anticipated that these issues will be resolved by the January 2019 billing cycles. Summary: The following provides a brief overview of the billing concerns raised by the customers at the Council meeting: • The customers reside in dwellings with electric heat. • Each customer’s monthly electric service consumption increased significantly, between 45- 110%, from October to November 2018 mostly due to increased heating needs. • One customer experienced a cost decrease under TOD, comparing November 2017 to November 2018, even though the customer’s usage increased during that period and there was a 1.8% rate increase in 2018. • One customer, even though consumption increased significantly, experienced a savings on TOD versus tiered rates. • Utilities is undergoing a transition in our billing paper inventory and billing format. The information on the back of the bill does not yet reflect TOD information, and due to the number of lines on the utility bill, the front of the bill does not show the billing history. This is especially true for net metering solar customers. Staff is working with Information Technology to correct these issues. DocuSign Envelope ID: CB1CFE2B-F67C-4C40-B894-D5565F2CD6FA 11/28/2018 11/28/2018 11/29/2018 11/29/2018 • Monitor My Use is not accurately reflecting TOD use between on-peak and off-peak hours. This issue also is being addressed and should be resolved in December. The Monitor My Use website has had a customer awareness notice about this issue since early October. Overall key points Utilities staff is stressing to both customers and media: • TOD savings are based on annual consumption patterns, not monthly, evaluated with 2016-2017 billing data. • Typically, there are seasonal differences when comparing monthly bills. • Customers can contact Utilities Customer Care or submit an online request for a 12-month bill comparison between TOD and tiered rates. • Utilities encourages friends, neighbors and family to contact Customer Service with their questions and concerns. • Electric heat customers should contact Utilities immediately if they are not on the correct TOD rate, and staff will put them on the correct rate. Customers also may fill out the online rate change form at fcgov.com/TOD. Key TOD statistics through November 20 (regularly updated in the City Manager Monthly Report): • Utilities bills approximately 74,000 residential customers monthly. • Since August, Utilities has managed over 600 calls and 95 emails from customers regarding TOD pricing. Typical monthly call volume averages 12,000. o Most of the calls have resulted in a better understanding of the overall rate structure. This includes increased awareness that the price is 30 percent lower 19-20 weekday hours, all weekends and major holidays; what customers can do to reduce their consumption; and how they have more control over their electric use. • The website has received 14,056 unique visits. • Social media has reached 7,226 customers. Staff is utilizing social media to increase awareness that major holidays are at off-peak pricing. Additional social media stats include: o 27 negative comments o 30 engagements o 11 likes o 2 shares • Over 663 customers have used the TOD online estimator tool. • Utilities has had seven media stories. • Access Fort Collins has received 31 requests. ec: Randy Reuscher, Utilities Strategic Finance, Senior Rate Analyst Lori Clements, Customer Care and Technology, Senior Manager DocuSign Envelope ID: CB1CFE2B-F67C-4C40-B894-D5565F2CD6FA