Securing Customer Accounts Jim Origliosso Eugene Water & Electric Board June 22, 2004
Eugene Water & Electric Board (EWEB) City of Eugene & Surrounding areas 5 elected Commissioners 85,000 Electric /45,000 Water Customers Sewer & Storm Charges
Eugene Statistics 78,000 Residential/7,000 Commercial 75 % Electrically heated University of Oregon/20,000 students/high turnover Unemployment rate of 6.8% - 49 th Highest in US Average annual household income $32,000
Rates and Costs 36% Retail rate increase in % Surcharge in 2002 Residential Rates are 3-tiered Summer/Winter rate differentials Average month residential bill=1135kwh/10 kgal per month, $156
Bill Payment Assistance -Residential- Energy Share (donated) Energy Share (rate based) at 1% LIEAP REACH Low Income Energy Conservation
EWEB and Other Utilities
Write Offs/Energy Assistance Q Bad Debt Total Bad Debt $42,889 Total Bad Debt Customers 449 Bad Debt Customers who received assistance 102 Bad Debt Customers with deposits 118 Total Deposits Applied $24,204
Deposits Collected Q Move-In Statistics Total Move-In’s 5,416 Total Move-In’s w/Deposit 69 Total Move-In’s w/Deposit that have received low-income assistance 7 % Move-In’s w/Deposit 1.27% % of Move-In’s w/Deposit and assistance.13%
Observations Deposit requirements made it to the Board Room Customer Reaction less after media coverage Financial effect of having a deposit policy is significant Deposits and write-offs are related Low-income assistance and write-offs are related
Comments Loosening is easy Tightening is hard Deposits protect customers who have good credit (and doesn’t hurt them) Deposits are only required for the riskiest customers Recently modified low income deposit requirements