City of Clinton Rate Response Plan – Presented 8/17/15
Short Term (0-6 Months)
Improve Communication – new web site to answer questions and inform progress
Assistance Agencies – help customers find avenues of assistance
Reduce Penalties/Fees –
- No late fees for June bill
- Reduce late fee for July bill to 5% (can be waived if you ask prior to your due date
- $25 fee for disconnection eliminated permanently
- Determine true cost of reconnect fee and charge accordingly
Hiring Freeze for all non critical positions
Capital expenditure freeze
Improve access to city’s management team
Purchase Power Cost Reduction
Energy Reviews – assist customers in finding ways to save energy costs
Budget Billing – year round average billing to eliminate surprises
Mid Term (6-18 Months)
Independent Cost of Service Study and adjust rates accordingly
2.3% rate reduction for customers on Demand Side Management. (allows city to temporarily suspend power to A/C compressor and pool pump during high usage.
Implement Financial Assistance Program
Transfer Policy – study use of utilities to supplement other services
Long Term (18+ Months)
Request outside aid for debt relief
Request PMPA rate adjustments
Debt refinancing/restructuring
Strategic rate plan based on cost of service study
PILOT – payment in life of taxes program for non taxable properties
Load Growth – emphasize economic development to increase customers to spread the fixed PMPA costs among more customers
Separate City and Utility – create stand alone utility if it reduces costs
Separate Billing – explore billing water and sewer on a separate bill from electric