Title
Utility Customer Assistance Program Briefing
Recommended Action
Receive an update on the City's current Lifeline Rate program and discuss additional options for utility payment assistance for low income customers.
Report
Issue:
UAC Deliverable: Review and provide input to Finance Committee.
Staff Contact:
Eric Christensen, Water Resources Director, 360.570.3741
Presenter:
Eric Christensen
Background and Analysis:
Lifeline Rate Program
The City's Lifeline utility rate program, set in Olympia Municipal Code (OMC) 4.24.020, provides a 50 percent discount on residential utility rates to any household occupied by low income elderly (age 62 or above) or low income disabled persons (see Lifeline Rate Application for the income levels). Additionally, OMC 4.24.030 extends the Lifeline utility rate program via a rebate to renters of individually metered premises.
The program reduces a typical single-family household bi-monthly utility bill from roughly $246_to $123. Additionally, the City provides a flexible payment plan for those customers that have fallen behind in paying their bill.
Olympia's current Lifeline utility rate program assists about 335 households per year at a cost of roughly $247,000 to traditional ratepayers. Prorated across the four Utilities, the cost results in 0.435% of rate charges or $6.42 annual for traditional ratepayers. The bi-monthly cost is $1.07.
Olympia Population and Poverty Levels
* Olympia's population is roughly 52,770 people living in 25,190 housing units.
* One-person household poverty level: $12,760 per year
* Two-person household poverty level: $17,240 per year
* Individuals with incomes below the poverty level: 18.4%
In 2018, the City evaluated ways to increase enrollment in the Lifeline utility rate program. The Utility Advisory Committee recommended, and the Finance Committee approved, an option that maintained the existing eligibility requirements, but increased community awareness of the program.
At the requ...
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