Customer Participation Workshop March,
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1 Customer Participation Workshop March,
2 Elberton Utilities and ElbertonNET has about 6,100 individual accounts All accounts are billed monthly Metered utility services are billed in arrears All services are billed on one bill: Electric Gas Water Sewer Security Lights Cable TV Internet Phone Solid Waste Sales Taxes (electric & gas)
3 There are 4 billing cycles Billed each 7 th, 14 th, 21 st, 28 th day of the month Meters are read once per month, either by physical read or by radio read Bills are due 18 days after the billing date Cutoff day is 22 days after the billing date, but is scheduled for Tuesday following
4 Rates are set independently for electric, natural gas, water/sewer, and ElbertonNET Each utility is set differently Rates are not affected by street lights or Christmas lights Rates are not changed based on the weather Rates are set for long term budget, usually no less than 1 year
5 ELECTRIC Four rate tables # of Customers Residential 3,400 Small Commercial 800 Large Commercial 200 Industrial 3 Residential rate is discounted $6.00 per month for those 65 and older who sign up for discount Residential and Small Commercial rates are different in the winter and summer Winter is November-April; Summer is May-October
6 ELECTRIC Rates do not fluctuate month-to-month Rates were adopted in April, 2013 Power Cost Adjustment (PCA) is changed about once per year and reflects the increased cost of power at the substation Rates have been affected most in the last 4 years by the bad economy in Georgia that leads to surplus power and environmental standards changed by the EPA
7 NATURAL GAS Only one rate for 99% of customers (about 4,000) Some large customers have contract rates that allow us to interrupt their service during gas supply shortages Agricultural customers have a contract rate that is offered state-wide Price fluctuates monthly based on the cost of gas at the well-head and pipeline City s margin per unit sold stays the same each month
8 WATER & SEWER There are 2 rates for water (1) Inside city limits and (2) Outside city limits Outside city limits is about 50% higher than inside city limits Residential and commercial customers all pay the same water rate 2 Tiers UNDER 20,000 cu.ft. and OVER 20,000 cu.ft. Only about 10 customers exceed 20,000 cu.ft. per month
9 WATER & SEWER There are 2 rates for sewer INSIDE and OUTSIDE Water is metered, sewer is not Sewer consumption is based on water meter consumption (85% unless customers has a separate irrigation meter, then 100%) Water and Sewer have separate rates tables Sewer bill usually ends up being 110% of the water bill
10 What is an average bill??? Very dependent on: Size of home Appliances in home Consumption pattern Weather Personal habits Summer Winter Water $25.00 $25.00 Sewer Cable TV Franchise fee Internet Phone USF Fee Solid Waste Landfill Subtotal $ $ Electric (1500/700) Electric sales tax Natural Gas Gas sales tax Total $ $448.15
11 Cost per day (Summer) - $12.91 Cost per day (Winter) - $14.94 Summer Winter Water $25.00 $25.00 Sewer Cable TV Franchise fee Internet Phone USF Fee Solid Waste Landfill Subtotal $ $ Electric (1500/700) Electric sales tax Natural Gas Gas sales tax Total $ $448.15
12 Mayor and Council set rates and fees, establish ordinances for administration and provision of services City Manager sets policies and procedures to comply with ordinances; delegates authority to Customer Service for specific tasks
13 The City is considered a creditor under various federal laws because it bills for services in arrears Have to comply with Dodd-Frank Act and various Credit and Privacy laws that also apply to banks, credit card companies, etc. Cannot discuss the account with anyone other than the account holder (includes elected officials)
14 Elected officials may not override existing ordinances, change billing amounts, issue credits, or authorize extensions Elected officials may not ask or direct employees to disclose information about account holders Elected officials may not direct employees to take any action on utility account holders
15 Two category of deposits, based on risk (1) Homeowners and (2) Renters Renter deposits are higher because there is no collateral to attach to other than the deposit, and the typical lease is only 12 months Three levels of deposits, based on credit score Low, Medium, and High HIGH deposit results in 2 months average bill being required for a deposit
16 Deposits are set by Ordinance 2 factors Customer specific information (renter, homeowner, good or bad credit, payment history) Location specific information (only applies with HIGH risk credit scores) Customer service does not have the authority to decide or set deposits outside of the established deposit policy Customer service can approve a payment plan to collect the deposit within 30 days
17 We must collect payment timely in order to pay our costs of electricity, natural gas, treatment of sewage, production of water, programming expense for cable TV, internet access, debt payments We are required to pay our invoices on days Impossible to finance customer accounts and meet our payment deadlines without prompt collection
18 10% late charge applied to metered utility services and cable TV if not paid by 18 day deadline Was 10 days, but was extended few years ago We will accept short payments, and then penalty only applies to amount outstanding after 18 days
19 Extensions are granted but service charges do apply Service charges are waived or lowered if customer can pay any part of the bill For high bills pay what you normally pay to avoid costly fees and penalties We can only work with people who try to keep their account in good standing through payments
20 Cannot grant extensions on the day of cutoff (Tuesday) Cannot give extensions on payment plans, prior agreements, or deposits Cannot give extensions on extensions All extensions are done in writing and in person (not by telephone) We will accept short-payments, but that does not automatically avoid cutoff Utility bills are a monthly expense we must collect something to avoid cutoff
21 Cutoff is released each Tuesday, depending on original billing date All accounts are released for cutoff at the same time (due by 9:00 a.m.) Service charge for non-payment is due and payable regardless of whether the services were actually disconnected Service charge based on number of services - $45.00; $65.00; or $75.00 max
22 The reason for service charges is that extensions and the cutoff process is very expensive Staff would be very small if all customers paid on time Therefore, the customers who generate the expense for non-standard services should pay the cost of those services
23 among other local providers of similar services
24 Elberton Utilities is among the low cost providers for the services it offers in our area of Georgia ElbertonNET offers tremendous value for telecom services Lucky to have public utilities Rates are set locally Decisions are made locally Zero profit margin everything is reinvested in the community who owns the systems No property taxes
25 Comparable providers are Georgia Power and Hart EMC Elberton is about 3% less than Hart EMC for Residential (Summer) Georgia Power is 15%-20% higher than Elberton for Residential (Summer) Elberton s Large Commercial and Industrial rates are tremendously lower than Ga. Power and Hart EMC, sometimes as much as 30% lower!
26 Elberton Hart EMC Georgia Power 1,000 kwh $ $ $ ,000 kwh ,000 kwh Difference from Elberton Hart EMC Georgia Power 1,000 kwh $5.30 $ ,000 kwh ,000 kwh Before sales taxes
27
28
29 Total Water and Sewer Bill for 5,000 Gallons $80.00 $70.00 $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 $0.00 Lincoln County Hart County Washington OconeeCounty Lincolnton Commerce Gainesville Athens/Clarke Toccoa Cornelia Bowman Royston Elberton Hartwell
30 Phone service is only $15.05 (after discounts) when bundled with Internet or TV Includes all features such as caller ID and voice mail, and includes U.S. long distance Can be as much as 75% less than AT&T for similar service Internet is $11.00 cheaper per month when bundled with TV
31 The best way to influence your utility bill is through maintenance of your home and appliances Be mindful of your activities (thermostats, hot water settings, washing clothes in cold water, get rid of inefficient appliances, repairing leaks) Conservation If you work away from home, use programmable thermostats
32 Offer to homeowners and electric customers Can finance up to $5,000 for up to 60 months at 1% interest Monthly payment is placed on utility bill Eligible activities: New heating & air units Weatherization and insulation Energy Star appliances
33 For electric customers, may enroll in the program each May and November For non-electric customers, can only enroll in May Billing is based on previous 12 months actual usage, multiplied by current rates, plus 10% Any balance due or balance owed at the end of 12 months is added to the next 12 months calculation There is no true-up
34 These Utility Systems are the community s greatest physical asset Must be renewed and rehabilitated to maintain today s quality of service Must be held in trust for future generations
35 Customer Participation Workshop April,
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