1 / 12

A Water Affordability Program for the City of Detroit

A Water Affordability Program for the City of Detroit. Prepared by : Roger D. Colton Fisher, Sheehan & Colton Public Finance and General Economics Belmont, MA February 10, 2005. Components of the Affordability Program. Rate affordability component: Burden-based Fixed credit

vernados-karan
Télécharger la présentation

A Water Affordability Program for the City of Detroit

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Water Affordability Programfor the City of Detroit Prepared by: Roger D. Colton Fisher, Sheehan & Colton Public Finance and General Economics Belmont, MA February 10, 2005

  2. Components of the Affordability Program • Rate affordability component: • Burden-based • Fixed credit • Arrearage management component • Water conservation component

  3. Cost Recover for Rate Affordability • Meters charge (not volumetric): • Bad debt offsets • Start-up expenses • Annual level of a meters charge: • Residential: $12 • Commercial: $240 • Industrial: $3,300 • Municipal/school/housing: $900

  4. Rate Affordability Expense Savings • “Going forward” bad debt savings • Reduction in working capital • Reduction in credit and collection • Rationalize credit and collection

  5. Impacts of affordability program:Columbia Gas • 61% fewer disputes • 53% fewer new payment plans • 69% fewer broken payment plans • 48% fewer shutoff notices • 74% fewer orders for disconnections for nonpayment

  6. Impacts of affordability program:National Fuel Gas • 30% increase in number of payments • 10% increase in percentage of bill paid • 80% decrease in number of disconnections

  7. Basic Consumer ProtectionsService disconnects for nonpayment • Waived late fees for low-income customers • Disconnect limitations: • Ban notice with no present intent to disconnect • Impose time limit on efficacy of notice • Limit number of notices not acted upon

  8. Basic Consumer ProtectionsPayment Plans for Arrears • Renegotiate payment plans with changed circumstances. • Reinstate payment plan after default if no disconnect. • Regular but not necessarily equal monthly payments. • Cap payment plan payment at one month’s average bill.

  9. Innovations in collections • Increased use of Electronic Funds Transfer (EFT) for ability-to-pay payment plans. • Landlord receiverships whether or not gas and/or electric vendors involved. • Cross-servicing residential accounts: city permits. • Cross-servicing non-residential accounts: license and permits.

  10. Summary of program proposal • Rate affordability program: • Rate affordability • Arrearage management • Water conservation • Fundamental consumer protections • Designated ability-to-pay collection initiatives

  11. For More Information http://www.fsconline.com (Library or News)

  12. For More Information roger@fsconline.com

More Related