Item 18 - Briefing of COA Utilities Bill Payment and Customer Assistance Program — original pdf

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City of Austin Utilities Customer Receivable Management Sandra Escobedo Vice President, Customer Account Management Matthew Thomas Assistant Director, Customer Experience October 2026 Executive Summary City of Austin Utilities • Austin Energy • Call Center Management • Accounts Receivables Management • Austin Water • Consolidated Monthly Billing • Customer Assistance Programs • Meter Reading Validations • Branch Management Monthly Billing ~615K generated bills across 6 utility services monthly Customer Assistance Program Nationally recognized wrap-around service model with suite of programs for our most vulnerable customers • Austin Resource Recovery • Austin Watershed Protection • Austin Development Services • Austin Transportation and Public Works 2 From Invoice to Payment: The Collections Journey Customer engagement with CoA Utilities is vital Bill Generates Bill Due Date Reminder Letter Letter Due Date Eligible for Disconnect Notice Courtesy Notice Delivered (Door Hanger) Electric Disconnect for Non-Pay (Water follows 3 days later) Day 17 Day 21 Day 31 Day 32 Day 33 - 35 Day 34 - 37 Disconnection moratoriums are applied seasonally 3 Account Management All customers can take advantage of several options to assist in budget management Payment Arrangements Budget Billing Helpful Tools Multiple options allow customers to set up affordable monthly arrangements when needed A fixed payment amount per month can help customers with budgeting needs Digital Self Service tools for prompts and budget setting Multiple ways to pay from in-person branch services with no fee to digital wallet 4 Discount Customer Enrollment Automatic Enrollment Texas Health & Human Services (HHSC) program enrollment 200% of Federal Poverty Income Level Austin Energy residential account holder address match process Self Enrollment Online application or Paper application Income verification 200% or HHSC enrollment letter FY26 Customer enrollment rates • 97% Auto Enrolled • 3% Self Enrollment 5 Customer Assistance Programs Nationally Recognized Wrap Around Services Model Utility Bill Discounts Wrap Around Services Medically Vulnerable Registry Plus 1 Financial Support Weatherization Arrearage Management Education Utility Bill Discounts 72K Households (~21K Water) Medically Vulnerable Registry 869 Households Plus 1 Financial Support 8,954 Households | $2.6M Education 405 Households Arrearage Management 801 Households Weatherization 288 Households 6 National Trends for Water Affordability L I H W A P 2 0 2 4 S T U D Y • 1 in 5 households owe water bill debt; lowest-income families spend up to 40% of income on water • Affordability challenges differ by region • Urban systems → higher arrears • Rural systems → higher disconnection rates • Large utilities average nearly $15M in unpaid water bills • Assistance programs benefit both customers and utility operations 7 National Trends for Water Affordability L I H W A P 2 0 2 4 S T U D Y Disconnections by Utility Size Very Small Small Medium Large Very Large Moratorium on disconnections 16.27% 15.53% 13.73% 18.80% 43.75% Average Household Disconnections Received notice of disconnection 11.98% 16.79% 16.20% 18.72% 19.72% Disconnected 3.22% 5.28% 4.82% 4.73% 4.61% Disconnected after notice 26.88% 31.45% 29.75% 25.27% 23.38% Data from: Table 3. Rates, Disconnections, Arrears, and Fees among Responding Utilities by EPA Size Category 8 How Austin Water Considers and Prioritizes Affordability Austin Water Produces an annual Affordability Report • Council-initiated study with annual tracking and peer comparisons Supporting Affordability Framework • Below-trend rate increases (<2%) compared to water utility industry • Comprehensive cost-of-service review • Community-driven rate design and equity measures 9 Customer Assistance Program (CAP) R E A C H , I M PA C T A N D E X PA N S I O N S 2026 Reach and Impact Expansions 23,000+ residential customers 36,000+ multifamily customers Average 53% bill discount Multifamily Benefits: $17 monthly credit; applied via electric service if applicable or mailed if customer uses another electric provider Residential Benefits: • Waived fixed fees • Discounted rates 10 Customer Assistance Initiatives C A L M A N D D E L I V E R I E S Expanded plumbing programs Customer Assistance Leak Mitigation (CALM): • Since Dec. 2025 launch, long-term private-side water loss has been resolved for 32 CAP customers, averaging about $860 per repair • RFP for additional services launched Oct. 12 Water Deliveries during planned and unplanned emergencies McKinney Falls Apartments Delivery, Sept. 19, 2026 11 Customer Assistance Initiatives M Y AT X W AT E R C U S T O M E R P O R TA L Sample notification Digital Tools: My ATX Water customer portal • Tiered billing notification • Water use threshold notifications • Leak adjustments for water and wastewater averaging 12 Trends for Residential Disconnection for Non-Payment (DNP) Austin Water saw significant reductions in disconnections across all customer groups in 2026 FY2023–25 to FY2026: • Overall DNP: 2.80% → 0.9% • Non-CAP: 1.61% → 0.8% • CAP: 5.34% → 2.0% Disconnection Rate FY 2023–25 FY 2026 2.80% 0.9% 1.61% 0.8% 2% Overall DNP Non-CAP CAP 5.34% 0% 1% 2% 3% 4% 5% 6% 13 COA Utilities Has Low Disconnection Rates Prioritizing support for customers Texas electricity disconnection rates are among the highest in the nation, but customers of city-owned utilities like CPS Energy and Austin Energy are much less likely to be left in the dark because of unpaid bills. Nearly 24% of Texas residential electricity customers were cut off for nonpayment in 2024. . . Austin Energy cut power to 5.5% of the homes it served. Connect with CoA Utilities Call the CAP Contact Center for an application 1-855-319-6630 Customer can apply online at www.coautilities.com/go/cap Medically Vulnerable Customers can request registration forms be sent to their physician 512-494-9400 Register for service tools online at COA Login 15