Austin Energy Low Income Consumer Advocate Group February 19, 2014 9:30 am – 12:30 pm Town Lake Center, Assembly Room 100 Agenda Meeting Objectives 1. Review group structure and protocols 2. Complete constituting the Working Group 3. Gain a common understanding of Austin Energy’s deferred payment program and policies and mandates guiding those policies 4. Begin discussing Austin Energy’s deferred payment policies and identifying areas of agreement for revised rules 9:15 AM Gathering and Sign-In 9:30 AM Welcome, Objectives and Agenda Group Structure and Protocols Additions to Working Group Presentation: Deferred Payment Arrangement Questions and Answers Dialogue and Seeking Agreement: Deferred Payment Plans and Service Disconnections Wrap-up and Next Steps 12:30 PM Adjourn Thank you for your participation today.
Larry Weis, Austin Energy General Manager Mission: Deliver clean, affordable, reliable energy and excellent customer service. Collections Overview Disconnection and Reconnection Process Special Council Committee on Austin Energy Meeting December 5, 2013 2 •Follow City Code Chapter15-9 and state laws regarding utility debt •Assist the customer in reducing outstanding balances by offering flexible payment arrangements •Offer the customer opportunities to successfully manage their utility account and prevent perpetual debt accumulation •Offer special provisions for CAP and low income customers •Minimize utility rate increases •Optimize support services funding Objectives 3 Collections Process Steps Overview •The collections process begins with the generation of the customer’s bill •The process is highly automated, events trigger each process step •The customer can stop the next event at any point in the process by either making payment in full or requesting a Payment Arrangement. 4 Definitions Payment Arrangement •A Payment Arrangement (PA) is a short term payment option for households that are having a temporary crisis; PAs provide several months to pay off overdue utility bills in equal installments. These installments are in addition to the regular monthly current charges. The City of Austin does not disconnect services of customers with approved payment arrangements and on-time payments. Payment Arrangement Success •Successful PAs occur when payments for each PA installment plus the current billed charges are received in full, on or before the due date for each applicable month. Payment Arrangement Default •PAs are in default when the full PA installment and current billed charges due are not paid by the due date. If default occurs the account will proceed through the collections process. Arrearage Management Program •Arrearage Management Programs are long-term financial assistance programs and provide relief for low-income customers who have significant past due amounts (arrears) on their utility bills. •Bill is not paid by due date •No response to delinquent payment reminder •No response to 24-hour notice •Customer does not request a payment arrangement 5 How Does a Disconnect Occur? •On average 14% of the total residential customers enter into the collections process each month 422, 27% 358, 23% 289, 18% 514, 32% August 2013 Customer Behavior – 24-Hour Notice 10,644 , 20% 2,242 , 4% 866 , 2% 39,390 , 74% August 2013 Customer Behavior - FTNs Paid account Set up Payment Arrangement Set up Payment Plan Took no action * There was no collection activity between August 2011 – May 2013. In …
PUBLIC UTILITY REGULATORY ACT Title II, Texas Utilities Code (As Amended) Effective as of September 1, 2011 PUBLIC UTILITY COMMISSION OF TEXAS [BLANK PAGE] PUBLIC UTILITY REGULATORY ACT Title II, Texas Utilities Code (As Amended) Effective as of September 1, 2011 PUBLIC UTILITY COMMISSION OF TEXAS 1701 N. Congress Avenue • P.O. Box 13326 • Austin, Texas 78711-3326 • 512/936-7000 [BLANK PAGE] i FOREWORD The Public Utility Code was enacted by Acts 1997, 75th Leg., R.S., ch. 166, § 1 as a new and separate code effective September 1, 2007. Title 2 of the code is properly cited as the Public Utility Regulatory Act. This edition of the Public Utility Regulatory Act contains amendments adopted through the 82nd Legislature, First Called Session. In general, the effect of amendments have been clear and the resulting text changes were straightforward and did not require any editorial discretion. Except as explained below, editorial discretion was exercised in reconciling multiple amendments to the same section. In the majority of these cases, there was no irreconcilable conflict and all of the amendments could be given effect. In some cases, an act expressly amended a provision as added or amended by another act. In the few cases where an irreconcilable conflict was found, the act with the later date of enactment was given effect, with the other provisions italicized below. In addition, a note explaining the conflict is provided following the section annotation. The annotations following each section have two components. The first annotation shows the derivation of the section, either citing to the Public Utility Regulatory Act of 1995 (V.A.C.S. Art. 1446c-0), Acts 1997, ch. 166, or showing the section as added to the code and citing the relevant act. The second component identifies subsequent amendments, cites the amending act (and originating bill), provides a brief summary of each of the amendments, and, where appropriate, provides a reference to related provisions or material. This publication is maintained by the Commission Advising and Docket Management Division of the Public Utility Commission of Texas. Suggestions or corrections may be submitted to that division. ii [BLANK PAGE] iii TABLE OF CONTENTS TITLE I. GENERAL PROVISIONS ..........................................................................................1 CHAPTER 1. GENERAL PROVISIONS ................................................................................................ 1 Sec. 1.001. PURPOSE OF CODE. ..................................................................................................................... 1 Sec. 1.002. CONSTRUCTION OF CODE. ........................................................................................................ 1 Sec. 1.003. REFERENCE IN LAW TO STATUTE REVISED BY CODE. ...................................................... 1 TITLE II. PUBLIC UTILITY REGULATORY ACT ..............................................................3 SUBTITLE A. PROVISIONS …
Collections Overview Disconnection and Reconnection Process September 2013 Mission: Deliver clean, affordable, reliable energy and excellent customer service. www.austinenergy.com Collections Process Steps August 2013 2 Bill Generation 24 Hour Notice Bill Due Late Fees / Letters Mailed Delinquency Due Disconnect for Non-Payment Collections Process 17 days 17 days 4 days 6 days Overview The collections process begins with the generation of the customer’s bill The process is highly automated, events trigger each process step The customer can stop the next event at any point in the process www.austinenergy.com Overview Allow a minimum of 17 Days from Bill Generation to Bill Due Date May vary due to holiday or weekend COA Regs 15-9-131 DETERMINATION OF BILLING CYCLES Bill Generation: Due Date How We Compare Number of Days from Bill to Due Date August 2013 3 Austin Energy 17 CPS Energy 16 Pedernales Electric Cooperative 16 PUC (TXU, Reliant) 16 MLGW 16 Colorado Springs Utilities 14 www.austinenergy.com Overview Assess 5% Late Fee On Metered Services only On Current Amount Due only Listed on the Payment Stub COA Regs 15-9-137 PAYMENT REQUIREMENTS AND LATE PAYMENT PENALTY Past Due: Late Fee Assessed August 2013 4 www.austinenergy.com Delinquent Letters Mailed August 2013 5 Austin Energy $0 CPS Energy $0 Pedernales Electric Cooperative $0 Reliant $0 TXU $10 per notice Gexa Energy $15 per notice Amigo Energy $22 per notice Bounce Energy $20 per notice How We Compare Disconnect Notice Fee Overview Mail letter stating that Account is subject to Disconnection for Non-Payment if no action is taken Letter type based on account activity Friendly Firm COA Regs 15-9-106 NOTICE OF SERVICE DISCONNECTION www.austinenergy.com No Response from Customer: 24 Hour Notice August 2013 6 Overview Leave Courtesy Door Hanger Cost of $1.5M annually COA Regs Requirement for notice of service disconnection per 15-9-106 NOTICE OF SERVICE DISCONNECTION is met through Delinquent Letter. NOTICE OF SERVICE TERMINATION Previous attempts to collect on you utility account have been unsuccessful. Payment of your past due balance must be made immediately or utility services will be disconnected. In order to prevent disconnection, payment must be made at an authorized pay station and you must contact the utility service center to provide receipt information. If you are experiencing difficulty paying your bill, you may qualify for a Payment Arrangement or financial assistance. Please contact us for more information. Austin Energy Yes CPS Energy Yes Pedernales Electric Cooperative No Reliant No TXU …
Supporting Policies Rules and Regulations Austin City Code ARTICLE 1. GENERAL PROVISIONS § 15-9-1 DEFINITIONS (5) CUSTOMER means: (a) an individual, partnership, association, firm, public or private corporation, governmental authority, or other legal entity that receives City utility service at a service address; (b) an owner of property that is connected to the City’s utility service at a service address; or (c) a person who receives the benefit of the City’s utility service. ARTICLE 9. INVOICE AND PAYMENT REQUIREMENTS. § 15-9-145 CHARGES FOR UTILITY SERVICE. As prescribed by Section 1502.057 (Charges for Service) of the Texas Government Code, the City shall equally and uniformly apply the rates it charges for utility service, and may not allow free utility service except to facilities operated by the City. Source: 2003 Code Section 15-9-2; 1992 Code Section 18-4-002; Ord. 040805-02. ARTICLE 10. CITY’S INSTALLATION AND METERING. § 15-9-154 PRIMA FACIE EVIDENCE OF CONSUMPTION. The reading registered on a City utility meter is prima facie evidence of the amount of service provided to a customer. Source: 2003 Code Section 15-9-214; 1992 Code Section 18-4-303; Ord. 040805 The Texas Constitution Article 3 - LEGISLATIVE DEPARTMENT SECTION 55 - RELEASE OR EXTINGUISHMENT OF INDEBTEDNESS TO STATE, COUNTY, SUBDIVISION, OR MUNICIPAL CORPORATION The Legislature shall have no power to release or extinguish, or to authorize the releasing or extinguishing, in whole or in part, the indebtedness, liability or obligation of any corporation or individual, to this State or to any county or defined subdivision thereof, or other municipal corporation therein, except delinquent taxes which have been due for a period of at least ten years. (Amended Nov. 8, 1932.) Texas Statutes Government Code TITLE 9. PUBLIC SECURITIES CHAPTER 1502. PUBLIC SECURITIES FOR MUNICIPAL UTILITIES, PARKS, OR POOLS SECTION 1502.057. CHARGES FOR SERVICES (a) A municipality shall impose and collect charges for services provided by a utility system in amounts at least sufficient to pay: (1) all operating, maintenance, depreciation, replacement, improvement, and interest charges in connection with the utility system; (2) for an interest and sinking fund sufficient to pay any public securities issued or obligations incurred for any purpose described by Section 1502.002 relating to the utility system; and (3) any outstanding debt against the system. (b) The rates charged for services provided by a utility system must be equal and uniform. A municipality may not allow any free service except for: (1) municipal public schools; …
THE TEXAS CONSTITUTION ARTICLE 3. LEGISLATIVE DEPARTMENThttp://www.statutes.legis.state.tx.us/Docs/CN/htm/CN.3.htm[2/13/2014 9:42:55 AM] THE TEXAS CONSTITUTIONARTICLE 3. LEGISLATIVE DEPARTMENTSec. 1. SENATE AND HOUSE OF REPRESENTATIVES. The Legislative power of this State shall be vested in a Senate and House of Representatives, which together shall be styled "The Legislature of the State of Texas." Sec. 2. MEMBERSHIP OF SENATE AND HOUSE OF REPRESENTATIVES. The Senate shall consist of thirty-one members. The House of Representatives shall consist of 150 members. (Amended Nov. 2, 1999.) (TEMPORARY TRANSITION PROVISIONS for Sec. 2: See Appendix, Note 1.)Sec. 3. ELECTION AND TERM OF OFFICE OF SENATORS. The Senators shall be chosen by the qualified voters for the term of four years; but a new Senate shall be chosen after every apportionment, and the Senators elected after each apportionment shall be divided by lot into two classes. The seats of the Senators of the first class shall be vacated at the expiration of the first two years, and those of the second class at the expiration of four years, so that one half of the Senators shall be chosen biennially thereafter. Senators shall take office following their election, on the day set by law for the convening of the Regular Session of the Legislature, and shall serve thereafter for the full term of years to which elected. (Amended Nov. 8, 1966, and Nov. 2, 1999.) (TEMPORARY TRANSITION PROVISIONS for Sec. 3: See Appendix, Note 1.)Sec. 4. ELECTION AND TERM OF MEMBERS OF HOUSE OF REPRESENTATIVES. The Members of the House of Representatives shall be chosen by the qualified voters for the term of two years. Representatives shall take office following their election, on the day set by law for the convening of the Regular Session of the Legislature, and shall serve thereafter for the full term of years to which elected. (Amended Nov. 8, 1966, and Nov. 2, 1999.) (TEMPORARY TRANSITION PROVISIONS for Sec. 4: See Appendix, Note 1.)Sec. 5. MEETINGS; ORDER OF BUSINESS. (a) The Legislature shall meet every two years at such time as may be provided by law and at other times when THE TEXAS CONSTITUTION ARTICLE 3. LEGISLATIVE DEPARTMENThttp://www.statutes.legis.state.tx.us/Docs/CN/htm/CN.3.htm[2/13/2014 9:42:55 AM]convened by the Governor.(b) When convened in regular Session, the first thirty days thereof shall be devoted to the introduction of bills and resolutions, acting upon emergency appropriations, passing upon the confirmation of the recess appointees of the Governor and such emergency matters as may be submitted …
