Transcript Slide 1
AABE Annual Conference Energy Assistance Presented by David L. Johnson, Director Revenue Management and Protection May 19, 2010 Current Economic Challenges Official unemployment rate for Detroit is 25.3%, but estimates on real unemployment approach 50%! Source: Michigan Bureau of Labor and Statistics – March 2010 2 Current Economic Challenges Michigan Foreclosure Filings 160,000 % People Below Poverty Level 33% 18.0% 106,000 120,000 118,000 16.0% 87,000 80,000 14.0% 14.4% 14.0% 13.5% 13.2% 14.4% 45,730 40,000 12.0% 0 10.0% 2007 2008 2009 2010 2005 2006 2007 2008 2009 YTD Source: RealtyTrac.com – through March 2010 Michigan Detroit Source: US Census Bureau 3 PRIVILEGED AND CONFIDENTIAL Current Economic Challenges As the number of LowIncome customers increases, State and Federal funding levels decline DHS statistics show DTE may have as many as 450,000 Low-Income customers in its service territory 225 205 185 165 145 125 105 85 65 45 25 450K* 425K* 356K* 255K 280K 236K $88M $119M 198K 2006 LI Customers Identified $112M $73M 2007 2008 State & Federal Funding 2009 2010 Proj Total LI Households in DTE Service Territory *Estimated based on DHS Statistics Allowing arrears to grow makes it very difficult for customers to restore service once disconnected 4 Customer Payment Hierarchy Mortgage Car Payment Credit Cards Cable/Direct TV Cell Phones Utilities!! 5 Evidence of Customers in Need is Apparent Everywhere 6 Customers in Need Low-Income in Arrears • • • • Eligible for energy assistance up to 200% FPL Eligible for payment plans with special down-payment features Low-income rates available Most programs were designed to assist low-income customers Non Low-Income in Arrears • Not eligible for assistance • Payment plans available but without special rates • Energy efficiency programs available but at a cost Slow Payers (Working Poor) • • • • • May or may not be in arrears Sometimes pay late but always pay before disconnect notice is sent Existing payment plans of little help Primary concern is high rates and difficulty paying bills Developing new programs to better assist this customer in reducing his/her bill 7 DTE Energy Community Assistance Customer Assistance Day DTE Energy Assistance to Customers in Need Community Energy Forums Faith-Based Partnerships Non-Profit Assistance Agency Partnerships Community Organization Relationships State Government Partnerships “Need Help?” 8 Faith-Based and Community Initiatives Community Energy Solutions (CES) • Partnering with four local churches to provide on-site low-income energy assistance via experienced DTE Case Management staff • Increase to full staffing in CES Churches • Expanded hours for greater customer convenience Fellowship Chapel Rev. Wendell Anthony III • Add a church on the West Side of the state – Grand Rapids or Muskegon Second Ebenezer Church Pastor Dr. Edgar Vann New Galilee Baptist Church Rev. Horace Sheffield • Expanding CES-like services into the Detroit Recovery Project • Education and communications with Faith-Based and Community leaders – – – Host an Energy Assistance Resource Conference Implement a quarterly Energy Assistance Newsletter Partner with leaders to streamline energy assistance messages thru existing channels: church events, bulletins, etc. St. Cecilia’s Catholic Church Fr. Theodore Parker Detroit 9 PRIVILEGED AND CONFIDENTIAL Customer Forums and Customer Assistance Day Event • Holding 35 Customer Forums in 2010 vs. 14 in 2009 • Provide on-site assistance to low-income customers • Assist customers filing HHCs and SER • Customer Assistance Day 2009 event provided over $500,000 in support to over 10,000 customers • Assembled over 25 Community Agencies • Hosting two Customer Assistance Day events in 2010 10 Apartment Disconnect Communication Plan Move Tenants Out Arrears Posting Day Notify of Pending Disconnect: • • • • • • • Legal Corp Communications Regional Relations Customer Service Agencies Legal Aide Southwest Solutions 5-10 Days Prior to Disconnect Corp. Comm. – Prepare media announcement Legal – Insure proper noticing; inform City of posting Visual documentation of posting Move Tenants Out • Apartment in Landlord name • Tenants pay utility as part of rent • Tenants primarily seniors and low-income Collection Process Disconnect Day Sept. 11, 2009 Legal – Notify appropriate entities of disconnect; coordinate last minute actions necessary UW211/DHS – Provide on-site support to tenants Corp Comm – Additional media support if needed Regional Relations – Notify appropriate legislative entities ECAC – Response Team Southwest Solutions – Provide housing solutions 11 “Need Help?” 12 For Internal DTE Energy Use Only Looking Ahead… • Developing new incentive-based payment plans tied to energy reduction to help customers reduce their utility burden – especially Slow Payers • Establishing a Case Management One-Stop-Shop to help low-income customers all the way through the energy assistance process • Working with state agencies to streamline access to assistance funding for customers • Modifying collection strategy based on more refined customer behavior segmentation • Enhancing customer office facilities and processes to reduce customer wait times and improve their overall experience • Partnered with social agencies to apply to participate in Low-Income Rate Pilot sponsored by the Michigan Public Service Commission 13 For Internal DTE Energy Use Only What More Can We Do? Energy Assistance Arrears 2008 YE $74M $503M 2009 YE $119M $436M 2010 Target $112M $389M • While existing programs have proven successful, much more can be done to support the communities we serve • We must be even more attentive to our customers’ needs during these difficult economic times • We need to be more resourceful and innovative in developing new assistance programs 14