TO: Board of Directors
FROM: Steve Lederer, Agency Manager
REPORT BY: Steve Lederer, Agency Manager
SUBJECT: Discount Program for Economically Disadvantaged Customers
RECOMMENDATION
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APPROVAL OF DISCOUNT PROGRAM FOR ECONOMICALLY DISADVANTAGED CUSTOMERS.
DISCUSSION AND REQUESTED ACTION: Board to approve a Discount Program for Economically Disadvantaged Customers as described below and authorize the Agency Manager to develop the administrative procedures for the program.
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BACKGROUND
At a previous Board meetings the Board asked staff to investigate the possibility of implementing a discount program for economically disadvantaged customers. After reviewing several options, we recommend a program that mirrors the Low Income Financial Assistance program used in the City of Napa. The key elements include:
1. Residential accounts only, for those who have qualified for the PG&E CARE program. Key point here being that UVA/UVDS staff do not have to ask for or analyze financial data or make judgement decisions. The customer either is on the PG&E CARE and qualifies for our discount, or they don't.
2. Discount would be a flat amount of $15/month (since UVDS bills quarterly, it would actually be $45/quarter).
3. When an account is closed, the discount would cease (i.e. the next customer will not be able to inherit the discount unless they too qualify). A qualifying customer can get the discount at their new location.
4. The customer would have to recertify (present a current letter) every 3 years.
5. The company will keep track of the amount discounted and bill the Agency quarterly for the full amount of the discount. Agency shall reimburse the Company from Agency funds.
6. The City of Napa indicates that 5.8% of their customers participate. At roughly 5000 residential customers, if 6% participated, and each got $15/month discount, the cost to the Agency would be about $54,000/year. The Agency has sufficient funds budgeted in "54805 Community Gr...
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