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HomeMy WebLinkAboutUtility Presentation Q2 2018Utility Quarter 2 2018 Department Updates Updates •Automated Merchant Systems contract review next steps 1.Select utility billing system 2.Determine whether AMS is an appropriate payment processor 3.If not, give AMS notice of terminating current agreement 4.Select new payment processor South Bend Water Shutoffs Center for Data Science and Public Policy The Project 1.Quantify the scope of utility payment delinquency in South Bend 2.Characterize delinquent behavior, characteristics of delinquent accounts, and water shutoffs 3.Quantify impact of delinquency on city and residents 4.Motivate an intervention to decrease amount of delinquency The Problem •5,489 accounts (11% of all accounts) had their water shut off at least once in 2016. •Water shut offs are used as a lever for payment of a combined utility bill in cases of prolonged delinquency. •2016 figures: 8,076 water shut offs total equivalent to 673 water shut offs every month 311 Calls Every month, 2,329 calls are specifically about water shut offs or water billing inquiries. Who is affected? Mapping Shut Offs The median household income for the census tracts where accounts have water shut off, weighted by the number of such accounts,is $30,000. Disproportionate Effect on Renters Housing Units in South Bend Shut Offs in South Bend Understanding the Billing and Shut Off Process View of an Average Month 22% of all accounts incur a late fee on average in a given month, and 16% of delinquent accounts also receive a red bill, meaning they do not pay for an additional two weeks after incurring the late fee. When do accounts pay? •66% of delinquent accounts make a payment the same day that their water is shut off. Understanding Payment Behavior A “typical” delinquent account makes 6 late payments in the months prior to the first time itreaches the shut off point. Understanding Payment Behavior A “typical” delinquent account receives 4 red bills in the months prior to the first time it reaches the shut off point. Minimum:1 Maximum:48 Mean:6.2 Median:4 Disconnect Notice Trial Disconnect Notice Trial Goal •Increase the proportion of customers who pay their bill before shutoff •Disconnect notice modified using behavioral insights •Experiment impacted disconnect notices sent from January 3 through January 29, 2018, excluding January 9 •Half of recipients were sent the traditional notice and half were sent the experimental notice Traditional and Experimental Notices Disconnect Trial Outcome •Approximately 6,700 notices sent overall •Outcome measure: whether customers who received the test notice were more likely to pay before shutoff than those who received the traditional notice •Findings: no statistically significant difference •268 accounts who received the experimental notice were shutoff compared to 282 accounts shutoff who received the traditional notice Potential Explanations for Trial Outcome •Experimental letter did not motivate individuals to pay •Individuals receiving the experimental notice were unable to pay •Individuals fail to open their disconnect notice •The change in behavior was too small to measure in the current sample size Payment Extensions Utility Payment Extension Overview •Utility allows an account up to 4 extensions per year •Resident required to come into customer service office •Customer service representatives inform residents of extension program •Extension gives resident additional 10 days from shut off due date to make a payment Extension Form Process Map Extensions Extensions Data is from Jan. 2017 through Apr. 2018 Extensions Extensions Heat Map Payments •3,929 payments within 30 days of date extension given •32% of payments are on time •68% payments exceed 10 day extension period •Average number of days when resident pays extension= 13.7 Potential Projects Project 1: Extension Communication •Communicate extensions in other methods •What may be the best method to reach residents who could benefit from an extension? •Potential to trial different forms of communication Project 2: Actions from Shutoff Study •Test a proactive approach to target at-risk residents identified in study •Inform at-risk residents of extension program or other services in the city that help people in need •Decide when to intervene Celebrating Our Values Excellence and Accountability •Consumer Confidence Report