Title
Lifeline Utility Rate Briefing
Recommended Action
Committee Recommendation:
Staff briefed the Utility Advisory Committee (UAC) on this topic on April 5, 2018. The UAC supports staff's further analysis of options to expand the assistance program. With Finance Committee concurrence, the UAC can review and provide a recommendation as part of the 2019 utility rate setting process.
City Manager Recommendation:
Briefing. No action requested.
Report
Issue:
Whether to expand the City's Lifeline utility rate discount program to encompass more low income customers.
Staff Contact:
Andy Haub, P.E., Water Resources Director, Public Works Water Resources, 360.753.8475
Thomas Donnelly, Billing and Collection Supervisor, Administrative Services, 360.570.3816
Presenter(s):
Andy Haub
Background and Analysis:
The City's Lifeline program is a customer assistance program that provides a 50 percent utility bill reduction for households 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.
Olympia's current Lifeline program assists about 240 households per year at a cost of roughly $180,000 to traditional ratepayers. Pro-rated across the four Utilities, the cost accounts for approximately 0.35% of total rate charges or $6.32 annually for traditional ratepayers.
Cities throughout the United States are evaluating their customer assistance programs. However, most State laws constrain the type and amount of low income subsidies funded by traditional ratepayers. Conversely, Washington State sets very few restrictions on utility assistance programs.
Olympia Population and Income Levels
Olympia's population is roughly 46,000 people living in 25,035 housing units. The following data shows our community's income levels:
* Poverty thresholds
o One adult household: $12,752 per year
o Two adult household with one child: $16,895 pe...
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