Title
Utility Assistance Programs Update
Recommended Action
Receive briefing and provide feedback to staff
Report
Issue:
Briefing and discussion on utility rate assistance programs.
Staff Contact:
Jesse Barham, Public Works Water Resources Director, 360.753.8164
Gary Franks, Public Works Waste ReSources Director, 360.753.8780
Mike Vessey, Public Works Drinking Water Director, 360.753.8318
Presenters:
Jesse Barham, Public Works Water Resources Director
Background and Analysis:
The City has two utility assistance programs: Lifeline Rates and Helping Neighbors are available for eligible residential customers. Utility Billing staff regularly advise customers on these programs and suggest applying if customers are eligible.
Utility Assistance Programs
• Lifeline Rate Program - Established in 1990 and assists qualified utility customers with a 50% discounted rate. Customers must be low income and disabled or low income and over age 62. This is typically $83 savings per month or approximately $1,000 annually. The City uses the criteria of 50% below the Thurston County median income based on household size as published by the federal Department of Housing and Urban Development (HUD) to determine eligibility for the Lifeline Rate program. Currently that is $45,100 gross annual income for a household of two. The program is administered by our City Utility Billing staff. Customers on the program must re-apply annually since the income levels are updated every June/July. Currently there are 258 participants on the program (1.2% of total customers). 208 are qualified by income and age and 49 are qualified by income and disability. The estimated cost (revenue not collected) of the current participants is approximately $258,000 across all the utilities.
Staff is updating the disability proof of eligibility documentation for this program for renewals and new qualifications.
• Helping Neighbors Program - Established in July 2021 and came to fruition with the policy guidance from a UAC review in 2018. The program was intended to reach customers that do not meet the Lifeline Rate criteria but are facing financial hardship. The program collects voluntary donations to help low-income customers pay their utility costs. The City has an agreement with the Community Action Council of Lewis, Mason and Thuston Counties; a local non-profit, that determines customer eligibility and administers program funds. Customers must meet the same income/household criteria as the Lifeline Rate program and have a past due notice to receive assistance. The program currently offers a $75 voucher twice per calendar for qualifying households.
Since its inception, the city has received $10,044 in donations from customers. The City contributed $5,000 in start-up money (split between the utilities), $8,858 is currently available in the fund. Unfortunately, the program has only helped 46 households since 2021.
Staff is recommending changes to the program to increase participation, reduce applicant administrative barriers and increase utility financial support as needed to maintain the fund.
A link to the City’s Utility Assistance Program webpage is included in the staff report attachment area online. At the UAC meeting, staff will provide an overview of the two existing programs, provide existing program data, discuss current outreach efforts, and provide staff recommendations. A critical review of the City’s utility discounts/assistance program will happen during the next utility finance rate study.
Climate Analysis:
Utility rates and affordability do not have an immediate impact on greenhouse gas emissions. However, policy decisions and projects to address climate resilience and vulnerabilities do impact rates.
Equity Analysis:
Utility rates have potential impacts on the most vulnerable low-income portions of the Olympia community. Utility assistance programs help offset these impacts for eligible customers.
Neighborhood/Community Interests (if known):
The affordability of utility rates is of interest to the community, as is the sustainability and adequacy of these rates to support resilient and efficient utility services.
Options:
Briefing. Provide feedback to staff on utility assistance programs.
Financial Impact:
Rate assistance programs provide discounts or assistance to low-income households. Traditional rate payers cover the costs of the Lifeline discount, and customer donations cover Helping Neighbors program costs. Further analysis of various utility assistance options will be included in future utility financial analyses.
Attachment:
’City of Olympias Utility Assistance Program webpage <https://www.olympiawa.gov/services/utility_billing/utility_assistance.php>