Customer Affordability Program Improvements Status Report Crystal - - PDF document

Customer Affordability Program Improvements Status Report

Crystal Knight-Lee Director, Customer Service Lynnette Lemon Division Manager, Customer Service June 20, 2018

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Presentation Agenda

• Overview of Existing Affordability Programs
• Customer Assistance Program Regulation
• Affordability Program Improvement Strategy
• Draft Goals, Objectives & Expected Outcomes
• Program Evaluation Schedule
• Program Implementation Status
• Expanding Partnerships
• Next Steps and Q & A

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Commissioners’ Rate Setting Priorities

Policy Considerations Rank Revenue Stability 1 Conservation/Demand Management 2 Rate Stability 2 Affordability 3 Ease of Understanding 4 Ease of Implementation 5 Minimize Customer Impacts 6 Cost Based Rates 7

Source: Commissioners FY’18 work session on policy priorities for rate structure

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Customer Base Overview

• 1.8 million people served
• Over 455,787 active accounts
• Avg quarterly residential bill:

$215.74

• Number of active residential

accounts with delinquent balance: 20,006

• Average quarterly residential

delinquent bill: $219.16

• On average, 17k residential

customers pay late and incur a late fee

• Number and value of all delinquent

accounts with balances greater than $700: 2,660/$6.9M

Note: FY’18 Data as of 6/5/2018

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Program Description Administration Funding Source Customer Assistance Program (CAP) Provides financial relief to customers by providing a credit

• f the Ready-to-Serve Charge

for low-income residential customers. WSSC partnership with Office of Home Energy Programs (OHEP) Rate Payers Water Fund and RoundUp Programs The Water Fund helps residential customers who are experiencing hardship pay their delinquent water/sewer bills. The RoundUp Program offers all customers a convenient way to contribute to the Water Fund. The Salvation Army and WSSC Generous donations of customers, community members and WSSC employees

Overview of Existing Programs:

Customer Affordability

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Program Description Administration Funding Source Bay Restoration Fee Exemption Provides an exemption of the Bay Restoration Fund Fee that WSSC is required to collect pursuant to State law to help improve water quality in the Chesapeake Bay. WSSC in partnership with the State

• f Maryland

N/A HomeServe Cares WSSC’s agreement with HomeServe USA, Inc. includes a hardship fund to assist eligible customers who are unable to afford the cost of emergency water and sewer repairs. HomeServe HomeServe

Overview of Existing Programs:

Customer Affordability

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Customer Assistance Program

Preview of New Regulation

• Establishes policy, practice and guidelines for

administering Customer Assistance Program

• Requires Commission approval
• Regulation may be amended after adoption of new

legislation for indirect customers

• Reinforces partner agency MOU
• Program eligibility
• Data sharing
• Security and confidentiality

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Program Improvement Strategy

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People Process Improvements Program Development Partnership Building

People we’re trying to help and serve Processes we need to improve Programs we need to enhance or develop Partnerships we need to develop or expand

Program Goals and Objectives

Goal 1 Enhance assistance and billing options provided to low- income residential customers

• Obj. 1.1

Identify target groups/population for affordability programs

• Obj. 1.2

Develop, implement, and market new programs

• Obj. 1.3

Develop partnerships with community

• rganizations

Goal 2 Improve annual fundraising and voluntary contributions for programs

• Obj. 2.1

Identify annual fundraising goals for Water Fund

• Obj. 2.2

Identify dedicated funding sources and plan fundraising

• Obj. 2.3

Increase voluntary contributions to Water Fund

Goal 3 Reduce the total amount owed by active residential customers

• Obj. 3.1

Increase number of customers receiving assistance from WSSC or our partners

• Obj. 3.2

Reduce number of customer accounts

• wing >$700
• Obj. 3.3

Reduce total value of delinquent accounts

Goal 4 Adopt legislation to expand Customer Assistance Programs

• Obj. 4.1

Partner with affordable housing, apartment, and landlord associations

• Obj. 4.2

Expand assistance to hard-to reach customers including renters

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• Improvements to customer assistance programs
• Billing and collections practices aligned with

affordability goals & objectives

• Effective partnerships with community agencies
• Customers aware of program offerings
• Significantly reduced delinquent accounts
• Increased contributions/funding to Water Fund

Expected Outcomes

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Program Evaluation Schedule

• Goals & Objectives: Jun 2018
• Partnership Strategy: Jun 2018
• Current State Assessment: Jul 2018
• Billing & Collections Strategies: Jul 2018
• Communications & Outreach: Aug/Sep 2018
• Program Implementation Roadmap: Dec 2018

Improvements will be launched and communicated in alignment with rate structure outreach

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Implementation Status

• Engaged affordability consultants
• Scott Rubin – Raftelis
• Jay Sakai – 4Tenets Consulting
• Prepared draft program goals & objectives
• Evaluating business processes
• Met with partners at BGE and Washington Gas
• Initiated meetings: OHEP and Salvation Army
• Reached out to 20 potential partner agencies

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Expanding Partnerships

Affordability best practice Leverages partner’s

• utreach

capabilities Low-cost way to improve program visibility

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Next Steps

• Obtain Commission approval of Customer Assistance

Program Regulation

• Continue outreach to existing and potential partner
• rganizations
• Complete review of billing and collections procedures
• Initiate review of customer communications
• Establish performance metrics for evaluating success
• Assess FY’20 budget impact for enhanced programs
• Re-engage working group to pursue legislation that

expands CAP to indirect customers

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Questions?

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