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Regulatory Commission of AlaskaRegulatory Commission of Alaska

Customer Service in Tough Times: Working with Customers and Utilities

NARUC Summer MeetingsConsumer Affairs Subcommittee

Seattle, WAJuly 19, 2009

M. Grace Salazar, ChiefRCA Consumer Protection(907) 263-2134

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Consumer Protection & Information OfficeConsumer Protection & Information Office Regulatory Commission of AlaskaRegulatory Commission of Alaska

Residential Ratepayers

Commercial Ratepayers

Media Coverage

• 3 Staff: CPIO I & CPIO II

• Intake & Investigations

• Explain Rights & Responsibilities as a Utility Customer

• Assist Customers in Negotiating Deferred Payment Arrangements

• Statewide Consumer Outreach

• Consumer Assistance Programs, including Lifeline & Link Up Program

• Press Releases/PSAs/Consumer AdvisoriesUtility

I don’t have enough

revenue.Increase

rates, add fees.

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Know the RulesKnow the Rules

SHUT-OFF PROTECTIONSSHUT-OFF PROTECTIONSBefore electric or heat can be shut off for nonpayment, Before electric or heat can be shut off for nonpayment, customer must receive a shutoff notice customer must receive a shutoff notice 15 days15 days before the before the date of disconnection. The notice must be separate from date of disconnection. The notice must be separate from other mailings and must clearly say that it is a shutoff other mailings and must clearly say that it is a shutoff notice and provide payment options.notice and provide payment options.

If a utility has been notified that a residence is occupied by If a utility has been notified that a residence is occupied by a person a person seriously ill, elderly, with disability, or dependent seriously ill, elderly, with disability, or dependent on life support systemson life support systems,, the utility shall extend the the utility shall extend the disconnection date by disconnection date by 1515 daysdays and notify the customer of and notify the customer of the extension.the extension.

3 AAC 52.4503 AAC 52.450

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Know the RulesKnow the Rules

SHUT-OFF PROTECTIONSSHUT-OFF PROTECTIONSNot less than Not less than three working days prior to disconnectionthree working days prior to disconnection, the utility shall , the utility shall attempt personal contact with the customer either by telephone or by attempt personal contact with the customer either by telephone or by visit of an authorized utility representative to the premises. visit of an authorized utility representative to the premises.

If by telephone, the utility shall attempt to make contact no less than If by telephone, the utility shall attempt to make contact no less than three times at various periods in the day or make other reasonable three times at various periods in the day or make other reasonable attempts to contact the customer. A utility shall keep records of all attempts to contact the customer. A utility shall keep records of all attempted and completed telephone contacts, showing at least the time, attempted and completed telephone contacts, showing at least the time, the person making the attempt, and the outcome. the person making the attempt, and the outcome.

If by visit to the premises, the utility's authorized representative shall If by visit to the premises, the utility's authorized representative shall hand-deliver a "Shut-Off Notice" to the customer or, if no personal contact hand-deliver a "Shut-Off Notice" to the customer or, if no personal contact is possible, leave the notice in a prominent place. If the premises is 25 or is possible, leave the notice in a prominent place. If the premises is 25 or more miles from the nearest location from which the utility delivers more miles from the nearest location from which the utility delivers notices and if telephone contact cannot be made, a first class, postage-notices and if telephone contact cannot be made, a first class, postage-prepaid letter may serve as an alternative to a hand-delivered "Shut-Off" prepaid letter may serve as an alternative to a hand-delivered "Shut-Off" notice.notice.

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Working with CustomersWorking with CustomersListen to the CustomersListen to the Customers Listen to what our customers are saying, even if we heard it 100 Listen to what our customers are saying, even if we heard it 100

times.times. Advise customer that if we are unable to help, we will make Advise customer that if we are unable to help, we will make

sure we direct them to the appropriate agency that can provide sure we direct them to the appropriate agency that can provide assistance.assistance.

Understand the financial hardship and any other relevant Understand the financial hardship and any other relevant factors related to the circumstances of the customer.factors related to the circumstances of the customer.

Negotiate Payment ArrangementsNegotiate Payment Arrangements Assist utility customers in negotiating payment arrangements to Assist utility customers in negotiating payment arrangements to

avoid service disconnection.avoid service disconnection. Review customer’s payment historyReview customer’s payment history Determine size of delinquent account and length of time debt Determine size of delinquent account and length of time debt

has been outstanding and the circumstances which resulted in has been outstanding and the circumstances which resulted in the outstanding debt.the outstanding debt.

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Working with CustomersWorking with CustomersSample Utility DPASample Utility DPA

I wish to pay the account balance over a period of ______ months. I I wish to pay the account balance over a period of ______ months. I

agree to pay the account balance of $___________, an additional deposit agree to pay the account balance of $___________, an additional deposit

requirement of $__________ and a reconnect fee $___________, all totaling requirement of $__________ and a reconnect fee $___________, all totaling

$_____________. If I fail to keep the payment agreement, a second $_____________. If I fail to keep the payment agreement, a second

agreement may be offered depending on my account agreement may be offered depending on my account history. history.

However, if the second agreement is not kept, utility will not extend However, if the second agreement is not kept, utility will not extend

another agreement for a period of 12 months .another agreement for a period of 12 months .

For those customers experiencing extreme financial hardship, the utility For those customers experiencing extreme financial hardship, the utility normally waives the late fees, finance charges, disconnect and reconnect normally waives the late fees, finance charges, disconnect and reconnect feesfees..

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Working with CustomersWorking with Customers

Refer to LIHEAP and Other Consumer Refer to LIHEAP and Other Consumer Assistance Programs Assistance Programs

Assist with Assist with completing/faxing LIHEAPcompleting/faxing LIHEAP Application Forms. Application Forms.

Refer customers to the city’s Safety Links Program, public assistance Refer customers to the city’s Safety Links Program, public assistance office, food banks and religious organizations, and to the office, food banks and religious organizations, and to the 211211 directory directory of human service providers.of human service providers.

Provide information on Provide information on Weatherization & Energy Rebate ProgramsWeatherization & Energy Rebate Programs of of Alaska Housing Finance Corporation.Alaska Housing Finance Corporation.

Provide information on Provide information on Lifeline & Link Up ProgramLifeline & Link Up Program and any other utility- and any other utility-sponsored programs.sponsored programs.

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Working with UtilitiesWorking with UtilitiesEstablish and Maintain a Good Rapport with Utility Establish and Maintain a Good Rapport with Utility

RepresentativesRepresentatives Annual site tour, understand utility business operationsAnnual site tour, understand utility business operations Meet the utilities’ customer service, credits and collections, Meet the utilities’ customer service, credits and collections,

field/maintenance staff, and regulatory affairs staff field/maintenance staff, and regulatory affairs staff

Attempt to Resolve Conflicts EarlyAttempt to Resolve Conflicts Early Talk to utility about the customer’s situationTalk to utility about the customer’s situation Request the utility to hold off on disconnecting service Request the utility to hold off on disconnecting service Obtain customer’s usage and payment historyObtain customer’s usage and payment history

Look for Win-Win ResultsLook for Win-Win Results Negotiate payment arrangementsNegotiate payment arrangements Whenever possible, we request the utility to WAIVE late Whenever possible, we request the utility to WAIVE late

fees, disconnection/reconnection fees, and other finance fees, disconnection/reconnection fees, and other finance chargescharges

Alternate solutions without going through a formal Alternate solutions without going through a formal proceedingproceeding

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Low Income Heating Assistance Low Income Heating Assistance Program (LIHEAP)Program (LIHEAP)

Program runs from November 1 through April 30Program runs from November 1 through April 30

Households with seniors or disabled persons may apply for the Households with seniors or disabled persons may apply for the program as early as September 1program as early as September 1

NEW: NEW: State Heating Assistance ProgramState Heating Assistance Program for households with for households with incomes between 150-225% of the federal income guidelines. incomes between 150-225% of the federal income guidelines.

Chugach Electric Energy Assistance Program: Chugach Electric Energy Assistance Program: one-timeone-time assistance up to $500 available to households with person assistance up to $500 available to households with person seriously ill, disability, or 65 yrs and older.seriously ill, disability, or 65 yrs and older.

Consumer Assistance ProgramsConsumer Assistance Programs

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Coins Can Count ProgramCoins Can Count Program This program allows Anchorage Water & This program allows Anchorage Water &

Wastewater Utility customers to voluntarily opt Wastewater Utility customers to voluntarily opt to have their monthly payments rounded up to to have their monthly payments rounded up to the next highest dollar, with the excess coins the next highest dollar, with the excess coins dedicated to a fund to help needy customers in dedicated to a fund to help needy customers in paying their water/wastewater bills.   paying their water/wastewater bills.   

For example, if a bill is $69.81 and customer For example, if a bill is $69.81 and customer elected to participate in the program and paid elected to participate in the program and paid $70, the .19 cents will be set aside for this $70, the .19 cents will be set aside for this fund. fund.

Consumer Assistance ProgramsConsumer Assistance Programs

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Power Cost Equalization ProgramPower Cost Equalization Program

PCE is a state-funded program to help reduce the costs of power in rural parts of Alaska that rely on high cost diesel fuel for most of their electric power generation.

The PCE rate is determined by the RCA. Utilities then submit monthly reports to the Alaska Energy Authority that documents eligible power sold. The Alaska Energy Authority calculates the amount of PCE on a monthly basis and issues payment to the utility that flows through to the customer in the form of a reduced monthly electric bill.

Consumer Assistance ProgramsConsumer Assistance Programs

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To receive a PCE payment, a customer To receive a PCE payment, a customer of an eligible utility:of an eligible utility:

must be billed by the utility in accordance with the

relevant tariff, rate structure, separate demand charge, or minimum charge;

must make timely payments to the utility, for the electric power purchased, at least annually or on an appropriate schedule throughout the year; and

must pay the base amount, plus the difference between the utility rate and the amount of the power cost equalization payment for each kWh consumed.

Consumer Assistance ProgramsConsumer Assistance Programs

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BrochuresBrochures & Fact Sheets & Fact Sheets

Know Your Rights as a Utility CustomerKnow Your Rights as a Utility Customer

Understanding Your Electric BillUnderstanding Your Electric Bill

Understanding Your Gas BillUnderstanding Your Gas Bill

Ways to Lower Your Energy BillsWays to Lower Your Energy Bills

Understanding the Charges on Your Understanding the Charges on Your

Phone BillsPhone Bills

Lifeline & Link Up ProgramLifeline & Link Up Program

More…More…

www.rca.alaska.govwww.rca.alaska.gov

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www.rca.alaska.govwww.rca.alaska.gov

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Thank YouThank You

M. Grace Salazar, ChiefRCA Consumer Protection Section

(907) 263-2134grace.salazar@alaska.gov