Item 16: Utility Bill Relief Update — original pdf

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Item 16 City of Austin Utilities COVID-19 Relief Funding Update Kerry Overton Deputy General Manager, Chief Customer Officer Austin Energy 2/08/2021 - EUC © 2018 Austin Energy Agenda • Highlights • Utility Bill Relief Funding (Council approved April 9th)* • Customer Communication • Current Trends • Payment Arrangements • Customer Response • Aging Trends • Next Steps *Utility bill assistance is still available at ww.austinbillhelp.com 2 Austin Energy 2020 Pandemic Response April 2020 Council Approved Utility Bill Relief Funding Disconnections and Late Fees Suspended May – Dec 2020 AustinBillHelp.com launched Multi-channel communication and outreach Engaged with community partners and expanded Plus 1 Current State AustinBillHelp.com still available Late fees resumed to encourage customer contact Austin Energy goals to date have focused on offering utility bill assistance through relief programs and expanded payment options. 3 Utility Bill Relief Funding: COVID-19 As part of COA Utilities’ COVID-19 response, an initial $10M was added in April 2020 to the Plus 1 fund and an additional $10M will be made available in 2021. Plus 1 Funding & Payments (FY2019-2021) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - 4,293 $1,800,000 3,526 $1,600,000 $1,692,390 $1,186,303 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- # Payments $ Funding News releases Monthly Social Media Communications Mass marketing for Austinbillhelp. com Thousands of Direct Letters, Calls, E-mails, and Direct Flyers Communication Efforts Since April 2020 Austin Energy has encouraged customer contact by:  Emphasizing assistance options for residential  Highlighting debt management tools for all  Targeting campaigns for unpaid and accruing large balances In Focus: Marketing communications 5 Payment Arrangement Trends With the availability of a ‘Pandemic PA’ allowing up to 36 months of repayment opportunity and additional assistance funding, we are asking customers to reach us to address increasing aging balances. Monthly Payment Arrangement Allocation (Total # / Total $) s d n a s u o h T s t n e m e g n a r r A t n e m y a P f o r e b m u N s n o i l l i M t n u o m A r a l l o D Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Started AR > 30 Days Last Year (Dec 2019) This Month (Dec 2020) PA Balances PA Count PA Starts Total Active A/R >30 days $10,658,513.01 22,858 4,104 $22,135,853.03 $8,594,361.60 11,823 2,390 $43,064,616.79 Aged Receivables Overview March 2020 Outstanding Receivables December 2020 Outstanding Receivables 90.8% 66.3% 1-30 Days 31-60 Days 61-90 Days 91-120 Days Over 120 Days 1.6% 0.8% 1.7% 5.1% 1-30 Days 9.4% 31-60 Days 61-90 Days 91-120 Days Over 120 Days 5.9% 13.0% 5.4% Accounts considered current have declined from 90% in March 2020 to 66% in Dec 2020 and debt greater than 90 days old has increased 8x from $2.3MM to $18.8MM 7 Historical monthly active A/R dollars for all utilities Total active A/R > 30 Days $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- $22,135,853 $17,485,201 $43,064,617 Target Range Lowest A/R Peak A/R Prior Year A/R t c O v o N c e D n a J b e F r a M r p A y a M n u J l u J g u A p e S t c O v o N c e D n a J b e F r a M r p A y a M n u J l u J g u A p e S t c O v o N c e D FY19 FY20 FY21 • March 13, 2020: Moratorium on soft services began in response to COVID-19 Fiscal Years 2019 offers a view into a typical year for aged receivables management. At the onset of the pandemic in 2020, we began to experience a consistent upward trend. 8 Engaging City of Austin Utility Customers Relief focus Our plan: • Continue to encourage customer contact through outreach • Continue to provide customer relief options In response to continued pandemic impacts, resumption of collections activities has been adjusted to begin mid-2021. We continue to offer Late fee waivers (for those who receive relief funding or enter into a payment arrangement) • Payment arrangements with up to 36 months repayment options (24 months for commercial) Expanded pay channel options (Walmart, Paypal, Venmo…) • Utility bill assistance through AustinBillHelp.com and local partnerships • • 9 Resuming Receivables Management Jan/Feb 2021 Continue utility bill relief funding and customer outreach. Issue news release announcing gradual return to standard operations. March 2021 Targeted door hanger campaign to encourage customer contact from those most at risk. April 2021 Service disconnection notices resume and news release highlights key dates to resume all standard operations. May 2021 Resumption of all standard collections activity including disconnection for customers who have not made arrangements. Good news: 2021 funds are still available and there is still time for customers to contact us or a community partner for assistance options. Questions?