Title
Utility Customer Assistance Program
Recommended Action
Briefing and provide feedback to Finance Committee
Report
Issue:
Whether to provide verbal or written feedback to the Finance Committee on the utility customer assistance program.
Staff Contact:
Andy Haub, Water Resources Director, 360.753.8475
Background and Analysis:
City Council requests that the Utility Advisory Committee (UAC) evaluate the City's current utility Lifeline program and recommend potential changes. Specifically, the Council is potentially interested in expanding the program so that rate discounts could apply to more low income households.
The Lifeline program is a City customer assistance program that provides a 50 percent rate reduction for household meeting the following criteria:
* Low income and disabled, or
* Low income and over 62.
The program reduces a typical single-family household bi-monthly utility bill from roughly $250 to $125. Additionally, the City provides a flexible payment plan for those customers that have fallen behind in paying their bill.
Cities throughout United States are expanding their customer assistance programs. However, most State legislation constrains the type and amount of low income subsidies funded by traditional ratepayers. Washington State sets very few restrictions on utility assistance programs.
Olympia's current Lifeline program assists about 240 households per year at a cost of roughly $180,000 to traditional ratepayers. Prorated across the four Utilities, the cost results in 0.35% of rate charges or $6.32 annual for traditional ratepayers. The bi-monthly cost is $1.05.
Olympia's population is roughly 46,000 living in 21,200 households. Some data regarding income levels follow:
* Poverty thresholds
o One adult household: $12,752
o Two adult household with one child: $16,895
* Residents with incomes below the poverty level: 18.4%
* Families with incomes below the poverty level: 10.8%
* Individuals below poverty level, 2012-201...
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