Transcript Slide 1
2009 APPA National Conference Dealing with Customers’ Inability to Pay in Tough Economic Times June 16, 2009, 1:30 – 2:30 pm William A. Johnson KCBPU History • • • • • Established public water utility in 1909 Formed electric utility in 1912 First Board of Directors installed in 1929 In 1970s expanded service area to cover 127.5 square miles Unified Government created in April 1997 • Charter ordinance adopted KCBPU’s Role as a Public Utility • • • • • • Maintain Low Electric & Water Rates Provide Quality Customer Service Support Local Governments Assist with Economic Development Contribute to Charitable Organizations Provide Jobs - Local Living Standards KCBPU Challenges • • • • • • • Fewer Revenue Sources Inability to Raise Rates Changing Environmental Landscape Aging Workforce Depressed Economic Conditions Aging Infrastructure Shrinking Population Base Customer Statistics • • • • • • • • Electric Customers – 69,336 Meters Water Customers – 56,809 Meters Generating Capacity (Gross) – 613 MW Summer Peak (Aug. 2007) – 529 MW Substations – 29 Transmission/Distribution Lines – 1402 Miles Water Production – 45 Million Gals (Avg.) Water Storage Capacity – 34 Million Gals. Sales (Energy & Water) Other 17% Commerical 34% Industrial 20% Residential 29% 2009 Annual Budget (Revenue) $303,304,711 • Electric – $219,573,493 (72.4%) • Water – $35,683,670 (11.8%) • Non-Restricted Reserves – $24,390,869 (8.0%) • PILOT – $23,647,679 (7.8%) Local Rate Comparison 1,000 kWh (Summer) Utility Rate Fuel Rider Dollars/$$ KCBPU 6.60 $0.0310 $93.89 Westar 8.00 $0.0234 $89.45 IPL 9.94 $0.0126 $125.61 KCPL 7.93 $0.0126 $98.34 Population Trends 1990 - 2008 Population Trends by State, County, and City 600,000 500,000 400,000 300,000 200,000 100,000 0 1990 2000 2008 Johnson County 355,054 451,086 534,093 Wyandotte County 161,993 157,882 154,287 Kansas City, Kansas 149,800 146,866 143,801 Socio-Economic Summary Per Capita Income • $24,838 (County) -vs.- $34,799 (State) Unemployment (Feb. 2009) • 12.6% (County) -vs.- 6.2% (State) Poverty • 20.2% (County) -vs.- 11.9% (State) Health • Lowest in the State Customer Service Statistics • • • • • • • Walk in Lobby – 400 Customers Daily Payment Arrangements – 14,000 Annually Calls Answered – 18,000 Calls Monthly Delinquent Disconnects – 43,200 Annually Theft of Services – 292 Annually Returned Checks – 2,756 ($1,446,487) Write Offs - $1,783,883 Annually Economic Impact on Customers Ability to Pay • Walk in lobby numbers up despite use of Kiosk in 31 locations • Accounts receivables up 16% • Energy sales down in all rate classes (3.5%) • Delinquent Accounts up 5% • Theft of services up 51% Environmental Challenges • • • • Climate Change Cap & Trade Programs Carbon Tax Renewable Energy Standards KCBPU Energy Portfolio • • • • • Coal – 61.4% Gas – 28.5% Hydro – 6.5% Wind – 3.7% Landfill Gas – (Future)% Impacts of Ozone Programs • Ozone and BART on existing units will require added revenue • Three possibilities for responding to Ozone and BART: – Add AQC equipment to existing plants – Build new coal generation and retire older plants – Add combustion turbines and retire older plant Existing Service Strategies • • • • • • • • Maximize Use of Existing IT Systems Improve Billing Options Customer Self Service/Web Design AMI/Smart Grid System Deployment Demand Responses Energy Audits/Weatherization Promote Energy Efficiency Workshops Continue to Discuss Environmental Issues 2009 APPA National Conference Thank You Questions?