Transcript How Utilities Can Help Customers

Dealing with Customers’ Inability
to Pay in Tough Economic Times
The Memphis Light, Gas and Water
Perspective
Jerry R. Collins Jr., P.E.
President & CEO
Who We Are
• Memphis Light, Gas and Water (MLGW)
serves the City of Memphis and all of
Shelby County.
• 429,000 residential, commercial and
industrial customers
• Largest three-service utility in Nation
Our customers
• Approximately 43 percent of customers
are low income.
• The unemployment rate is approximately
8.9 percent.
Customer Care Policy
Made changes in 2008 to address the need to
increase flexibility when working with customers
facing extreme financial situations.
Changes include:
• The option of including the deposit amount on a
customer’s first bill. Residential customers pay
$125, but the deposit is based on credit
assessment.
• Not all customers are required to pay a deposit.
Customer care policy changes
• Customers requesting extensions only need to pay 25%
•
•
•
•
of their balance rather than 50%.
Balance of the bill is extended to eight days past the due
date of disconnect notice.
Balances less than $400 can be extended eight days
without payment.
We now allow second payment arrangements.
For a second payment arrangement, a customer must
pay 50% of the remaining balance and the balance is
extended until two days before the due date on the
next.
Utility Assistance
• Community Service Agency (CSA)
• Must meet income guidelines
• Each customer receives $500
Utility Assistance
– MIFA/Plus-1 Metropolitan Inter-Faith Association
(MIFA)
– Customers add a $1 or more to their utility bill
– Qualifications
• loss of income within the last 90 days
• medical crisis
• eligible once every 2 years
City of Memphis Utility
Assistance Program
• Eligibility:
1.
Must be 60 years of age or older and/or certified medically as
being totally (100%) disabled.
Head of household.
Active utility account in applicant’s name or spouse’s name.
2.
3.
OR
1. Head of household or spouse on active military deployment.
2. Active utility account in applicant’s name or spouse’s name.
3. Must have received cut-off notice.
MLGW…Caring for Customers
Special Assistance Programs
• Annual Moratorium on Cutoffs for
Nonpayment
• MLGW defers cutoffs for non-payment for
all residential customers between Dec. 15
and Jan. 14 annually.
MLGW Customer Special Assistance
Programs
• Winter Moratorium
• Prevents disconnection of services from
December 1 through February 28 for
seniors (age 60 and above) and/or those
with disabilities.
Deferred Payment Plan
• If a customer cannot meet the Payment Arrangement
•
criteria, MLGW may offer the Deferred Payment Plan
Conditions that may require a Deferred Payment Plan
– Customers with arrears created by a “charge in” from a previous
address
– Customers who come out of the winter season (December,
January, February and March) with unusually high winter bills
– Winter Moratorium customers with large balances at the end of
the program due to extreme heating costs
On Track
• A payment program designed to help customers
•
with limited incomes to manage debt and pay
off their bills over a period of time
Focuses on education, financial management
and social services
– Customers must have a steady, but limited income
– Owe more than $600 on their utility bill
• Average 300 customers a year.
Net Due Date Program
• For customers who receive income in the
form of Social Security, Disability,
government assistance or pension once
per month.
• Can change bill’s due date.
Helping Customers to Use Energy
Wisely
Max Impact Loan Program
• Home weatherization loan program
– 3 percent financing.
– Pay back on utility bill.
– Up to 10 years to repay.
– Earn less than $35,000 a year.
– Can borrow up to $2,500.
Energy Smart Memphis
• Energy education
•
workshops
Participants take
home weatherization
kit worth $50
Energy Informers
• Interact with
•
customers in our five
community offices.
Hand out a variety of
brochures and discuss
various energy
conservation
methods.
Giving Back
• Fans and air
conditioning window
units to seniors and
needy families to help
them cope with high
temperatures. MLGW
purchased 200 fans
and 200 air
conditioning window
units.
Rental Ordinance
• Proposed by MLGW to focus on the most
flagrant of problems found in rental
housing.
• Landlords have to rectify problems or
could face environmental court.
Rental Ordinance requirements
– Windows must be properly glazed.
– Pipes and wire entries into the building must
be sealed properly from the outside.
– Attics must be insulated.
– Heating and cooling equipment (if the
landlord provided it) must be working.
– Plumbing must be free of leaks.
TVA/MLGW Pilot
• Upgrades to 130 homes with Energy Star-
rated window units and additional
weatherization.
• Will measure customers’ usage during this
cooling season and compare to last year’s
cooling season.
Closing Remarks
Always do that which is in the
best interest of the customers
as a whole.