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 1

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 2

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 3

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 4

Overview of Existing Programs: Customer Affordability Program Description Administration Funding Source WSSC Provides financial relief to partnership Customer customers by providing a credit Assistance with Office of of the Ready-to-Serve Charge Rate Payers Home Energy Program for low-income residential (CAP) Programs customers. (OHEP) The Water Fund helps Generous residential customers who are donations of Water Fund experiencing hardship pay their The Salvation customers, and delinquent water/sewer bills. Army and community RoundUp The RoundUp Program offers WSSC members and Programs all customers a convenient way WSSC to contribute to the Water Fund. employees 5

Overview of Existing Programs: Customer Affordability Funding Program Description Administration Source Provides an exemption of the Bay WSSC in Bay Restoration Fund Fee that WSSC partnership Restoration is required to collect pursuant to N/A Fee with the State State law to help improve water of Maryland Exemption quality in the Chesapeake Bay. WSSC’s agreement with HomeServe USA, Inc. includes a HomeServe hardship fund to assist eligible HomeServe HomeServe Cares customers who are unable to afford the cost of emergency water and sewer repairs. 6

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 7

Program Improvement Strategy Partnerships we need to develop or People we’re trying People expand to help and serve Process Partnership Improvements Building Program Programs we need Development to enhance or Processes we need develop to improve 8

Program Goals and Objectives Goal 1 Goal 2 Goal 3 Goal 4 Enhance assistance Improve annual Reduce the total Adopt legislation and billing options fundraising and amount owed by to expand provided to low- voluntary active Customer income residential contributions for residential Assistance customers programs customers Programs Obj. 1.1 Obj. 2.1 Obj. 3.1 Obj. 4.1 Identify target Identify annual Increase number of Partner with groups/population fundraising goals for customers receiving affordable housing, for affordability Water Fund assistance from apartment, and programs WSSC or our partners landlord associations Obj. 1.2 Obj. 2.2 Obj. 3.2 Obj. 4.2 Develop, implement, Identify dedicated Reduce number of Expand assistance to and market new funding sources and customer accounts hard-to reach programs plan fundraising owing >$700 customers including renters Obj. 1.3 Obj. 2.3 Obj. 3.3 Develop partnerships Increase voluntary Reduce total value of with community contributions to delinquent accounts organizations Water Fund 9

Expected Outcomes  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 10

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 11

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 12

Expanding Partnerships Affordability best practice Low-cost way Leverages to improve partner’s program outreach visibility capabilities 13

Next Steps  Obtain Commission approval of Customer Assistance Program Regulation  Continue outreach to existing and potential partner organizations  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 14

Questions? 15