Clinton City Manager Frank Stovall last night proposed solutions to the problem created by exceptionally high electric bills this summer. He divided the solutions into Short Term, Intermediate and Long Term fixes.
In the short-term he proposed that the city would improve communications with customers and improve access to the city’s management team. He said that a member of the management team would be on duty in the customer service area of the M.S. Bailey Municipal Center for several hours each day so that someone with the authority to make a decision would be available to customers struggling with these bills.
Also in the short-term, late fees and penalties for the month of June will be waived. They can also potentially be waived for July so long as the customer contacts the city on or before the due date of the bill to explain that they will not be able to pay on time.
Mr. Stovall also stated that he would ask City Council at the next meeting to pass a resolution eliminating the $25 fee associated with service disconnections. He explained that someone unable to pay the entire bill is probably not someone the city should ask to pay an additional $25. He said he felt that it was the right thing to do for the city to do away with that fee, not temporarily but permanently.
SOLUTIONS SUMMARY
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 lieu 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