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HomeMy WebLinkAboutMemo - Mail Packet - 12/28/2021 - Memorandum From Heather Young And Colleen Bannon Re: New Utilities Pandemic Assistance Program 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: December 23, 2021 TO: Mayor Arndt and Councilmembers FROM: Heather Young, Interim Utilities Community Engagement Manager Colleen Bannon, Utilities Pandemic Assistance Supervisor THROUGH: Kelly DiMartino, Interim City Manager Theresa Connor, Interim Utilities Executive Director Gretchen Stanford, Interim Customer Connections Deputy Director RE: New Utilities Pandemic Assistance Program Bottom Line: Fort Collins Utilities customers continue to experience the impacts of the COVID- 19 pandemic. To support our customers and in accordance with the Governor moratorium, we did not disconnect service for non-payment and did not charge late or reconnect fees from March 2020 through mid-2021. Disconnects resumed on May 12, 2021, and late and reconnect fees resumed on July 21, 2021. Payments for utility services are essential to continue delivering reliable and high-quality electric, water, wastewater, and stormwater services. When disconnects resumed, customers who had not paid their bill during the pandemic had unusually high past-due balances that were difficult to pay at once and created additional hardship. Customers continue to need additional support during this time. Delinquent Account Status Including Revenue: The number of delinquent accounts fluctuates each month. The graph below shows the Utilities uncollected past-due revenue related to the increase in delinquent accounts. The pandemic has caused hardship for many of our utility customers , and our delinquent account numbers have increased significantly, also impacting utility revenue. 2 Utilities typically writes-off about $300,000-$600,000 each year in uncollected revenue as bad debt due to delinquency. However, during the pandemic uncollected revenue has hovered at or above $1.3 million. Similarly, in 2018/2019 the average number of customers eligible for disconnects was 1,564. In 2020/2021, that number more than doubled to an average of 3,425 customers. While the pandemic has impacted Utilities revenue, this did not lead to the 2022 2% electric increase, which is due to a projected wholesale cost increase. Instead, we aim to support our customers through direct emergency and monthly financial assistance. Utilities Pandemic Assistance Program To help alleviate hardship from past-due Utilities balances, Fort Collins Utilities launched the Utilities Pandemic Assistance Program on November 17, 2021. This program combines $469,540 in American Rescue Plan funding (direct assistance, marketing, staff) with a $468,941 gift from Platte River Power Authority (direct assistance appropriated by Council in June 2021). To date, with this funding, we have provided $42,018 in assistance to 105 residential customers and $97,633 in assistance to 58 commercial customers. Assistance is applied as a bill credit directly to customers. Navigating local, state, and federal assistance programs can be cumbersome and create additional strain on customers experiencing hardship. To address this barrier, Utilities is also hiring a 12- month, contractual position. This person will provide intake for impacted customers, process applications, work with internal stakeholders, and assist customers with the myriad of options available to them, including connecting customers to monthly assistance through the Low- Income Energy Assistance Program (LEAP). Per Council approval on August 4, 2021, we are piloting a new program where customers enrolled in LEAP are automatically enrolled in the Income-Qualified Assistance Program through Utilities, a ~23% monthly rate reduction. 3 Outreach and Financial Assistance Provided to Customers with Delinquent Accounts: In 2020 and 2021, Utilities, along with our community partners, have been able to provide more than $1.4 million in financial assistance to help customers who have struggled to pay their utility bills. Outreach has included direct mailings, emails, and phone calls to advise them of the available funding. Each customer with a delinquent account receives a monthly notice encouraging them to contact Utilities immediately and informing them of their options: Pay your bill. Set up a payment arrangement. Apply for short-term and long-term payment assistance Below is a summary of financial assistance that Utilities has provided or facilitated to date. Funding source Program administrator, where to apply Program dates Customers served Amount distributed Average/ customer Funds Remaining Utilities Pandemic Assistance (ARPA, PRPA) Fort Collins Utilities fcgov.com/assistance 11/17/21- present 163 residential and commercial $139,651 $857 $712,487 CARES Act Fort Collins Utilities 10/14/20- 12/28/20 1,423 residential and commercial $575,910 $405 $0 Consolidated Appropriations Act Neighbor to Neighbor n2n.org/utility- assistance 4/21/21- present 540 residential, income- qualified, renters $176,392 $327 $29,691 Payment Assistance Fund (Energy Outreach Colorado) Various: La Familia Catholic Charities Discover Goodwill CSU fcgov.com/PAF Existing program, ongoing 1,443 residential, income- qualified $562,380 $390 $333,961 Total 3,528 customers $1.4 million $406 $1.1 million CC: Lance Smith, Utilities Finance Director Lori Clements, Utilities Customer Care & Technology Manager SeonAh Kendall, City Recovery Manager Blaine Dunn, Accounting Director