Notes form Subcommittee Meeting — original pdf

Backup

Discount Steering Committee Working Session Minutes March 5, 2014 In attendance: Michelle Akers (HACA) Gloria Cueva (Caritas of Austin) Kathleen Hopkins (Any Baby Can) Pat Macy (St. Austin Catholic Church) Tondalier Owens (Travis County HHS & VS) Linda Perez (Meals on Wheels & More) Angel Ramirez (Texas VFW Foundation) Ronnie Mendoza (AE) Sandra Castillo (AE) Irene Nemitsas (AE) Sample Section of AE Customers - Chart o AE pulled a representative sample of its customer base – approximately 100,000 accounts, split out between CAP and non-CAP o Included active and inactive accounts o Provided so DSC can get an idea of the number of customers in debt and the amount/level of debt, starting from $250 up to $3,000+ o Also pulled so AE can estimate the possible budget needed to fund the arrearage program o Showed a large gap between those in debt who are CAP (smaller percentage) versus non-CAP (much larger percentage) Debt over $3,000 – Reference Chart o Smaller sample size presented above didn’t fully represent those with $3,000+ in debt o Second chart provided (for reference only) that showed customers $3,000+ in debt  Stratified by dates – starting when collections process was re-instated (July 2013) to present  Non-disconnect period (July 2011-July 2013) definitely contributed towards these larger debts  Collections was enacted in phases – starting with the larger outstanding balances ($10,000+) and working down from there o Payment arrangements don’t work for these large amounts  Research shows that 78% of these arrangements are broken  Only after utilities disconnect for non-pay do customers begin to pay towards their debts AE Executive Expectations o What are collection expectations of AE executives for the arrearage management program? (AMP) o 100% debt collection because AE cannot forgive debt o What this program will offer though, is pledge “matches” or “credits” applied towards account, an incentive program that works with the customer to pay down their debt  Case Studies Showing Success? o AE will be one of the first for a public utility o Difficult to find similar scenarios- most utilities are de-regulated and can write off the debt as an expense  Then they recoup expense the following year by raising rates  AE cannot do that 2015 AMP Budgeting o Already proposed by AE - Ronnie had to forecast as he needed to ensure once the program is created that there is sufficient funding for it o The original budget will come from AE, then it is hoped AE can go to City Council and request future funds come out of Community Benefit Charge o Reason for this: long-term Key Accounts contracts due to expire in 2016  They will have to start paying into Community Benefit Charge  This will be additional monies coming into AE o Ronnie is hoping the original forecasted AE budget can buy time until then o By pulling from Community Benefit, this will also cover non-CAP/Regular customers who are in the AMP as they will be paying into the Community Benefit Charge o Smaller debt amounts can then be served by payment arrangements, Plus 1 funding, other city funding programs, etc. Things to keep in mind during program development: o Need to keep program participants engaged o We don’t want them to not be responsible for contributing to payments o We need to make it affordable Program Matrix Elements o Eligibility  Split into two “groups” of recipients CAP + 60% Median Family Income (MFI) {47,460 for a family of 4} o Discount customers – those currently in CAP or on waitlist o 60% Median Family income – those still low-income but not in CAP Regular o Not low-income or in CAP o Referred by local agencies o Benefits  CAP + 60% MFI Leverage other current programs to provide more comprehensive help Immediate incentive towards debt (match/credits begin month 1 of program) *Caveat for 60% MFI - they need to do education component – requires resolution change  Regular Partner resources Delayed incentive towards debt (match/credits begin month 3 of program) o How to Apply  CAP Already in place  60% MFI Income verification AE responsible for process Will require statement to be signed  Regular Agency referral Customer will apply through agency, then referral will be made to AE o *Caveat: This excludes churches without the resources to verify income. Will refer directly to agency or AE. o Auto vs. Self Enrollment  Initial contact to both groups via heavy promotion/marketing  CAP + 60% MFI – self-enrollment  Regular- hybrid of self- and auto-enroll Customer contacts agency (form of self-enroll) Agency then refers and AE auto-enrolls o Length of Program  Determined by amount of debt $1,750 -$3,000 = 12 months $3,001 - $6,000 = 24 months $6,001+ = 36 months o Down payment Requirement  Not required  Customers ARE required to pay their own currently monthly balances each month o Match vs. Graduated Payments  CAP + 60% MFI = graduated payments, with AE always paying more than customer  Regular = matched payments o Payment Amount %  CAP + 60% MFI = still TBD, possibly 20% customer/80% AE at first, then 30%/70%, etc.  Regular = 50%/50% o Removal from Program  2 strikes rule  How to determine: If NSF, missed-short-late payment and NO contact from customer in 30 days o They are removed (or receive first strike) If NSF, missed-short-late payment and they DO contact AE within 30 days o They can extend due date 15 days via pay plan and pay late fee o Ensures they stay in program o Administration  CAP + 60% MFI = AE  Regular = Agency referrals to AE Next meeting: Monday, March 24 at 2pm