HomeMy WebLinkAboutMemo - Mail Packet - 4/12/2022 - Memorandum From Heather Young And Colleen Bannon Re: Utilities Pandemic Assistance Program UpdateUtilities
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: April 1, 2022
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
Kendall Minor, Utilities Executive Director
Gretchen Stanford, Customer Connections Deputy Director
Lance Smith, Utilities Finance Director
RE: Utilities Pandemic Assistance Program Update
Bottom Line: Utilities customers are recovering from impacts of the COVID-19 pandemic. In
2022, we have seen a decrease in customers who are past due on their Utility bill, as well as a
decrease in past due revenue; assistance programs to support customers are having a positive
impact.
Background:
To support our customers, and in accordance with the Governor’s 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 of metered
services resumed, some customers who had not paid their bills during the pandemic had
accumulated unusually high past-due balances that were difficult to pay all at once.
Delinquent Account Status Including Revenue:
The number of delinquent accounts fluctuates each month. The graph below shows
Utilities’ uncollected past-due revenue related to the number of delinquent utility accounts. The
pandemic caused hardship for many utility customers, and delinquent account numbers increased
significantly following the start of the pandemic, 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, but during the pandemic, uncollected revenue remained at or above
$1.3 million until January 2022. In 2018/2019, the average monthly number of accounts eligible
for disconnect was 1,564. In 2020/2021, that number saw a similar increase, more than doubling
to an average of 3,425 customers. So far, 2022 accounts eligible for disconnect are beginning to
decrease, with 1,750 customers eligible for disconnection and $827,000 in uncollected revenue
in January.
Utilities Pandemic Assistance Program
To help alleviate hardship from past-due balances, Utilities launched the 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 $171,973 in assistance to 473 residential customers and $99,828 in assistance
to 71 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 has also hired a 12-
month, contractual position to 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, Utilities is piloting a new
program where customers enrolled in LEAP are automatically enrolled in Utilities’ Income-
Qualified Assistance Program, a ~23% monthly rate reduction.
3
Outreach and Financial Assistance Provided to Customers with Delinquent Accounts:
Throughout the pandemic (March 2020 – present), Utilities, along with our community partners,
have been able to provide nearly $1.7 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. Customer Service Representatives are also
trained on these programs and are excited to share them with customers in need.
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
494
residential
and
commercial
$183,081 $371 $580,017
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
803
residential,
income-
qualified,
renters
$219,889
$274
$49,887
Payment
Assistance
Fund (Energy
Outreach
Colorado)
Various:
La Familia
Catholic Charities
Discover Goodwill
CSU
fcgov.com/PAF
Existing
program,
ongoing
2,069
residential,
income-
qualified
$720,064 $348 $187,039
Total 4,789
customers
$1.69
million
$350
$816,943
CC: Lori Clements, Utilities Customer Care & Technology Manager
Blaine Dunn, Accounting Director
Cate Eckenrode, Senior Specialist, FC Lean
Joanne Cech, Senior Financial Analyst