HomeMy WebLinkAboutReso 2009-065 - REU Customer Non-pay process
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RESOLUTION NO. 2009 - 65
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF REDDING ADOPTING REDDING ELECTRIC
UTILITY CUSTOMER AND FIELD SERVICES'
STANDARD OPERATING PROCEDURE NO. 3.01
ENTITLED CUSTOMER NON-PAY PROCESS
WHEREAS, the City Council wishes to adopt Redding Electric Utility Customer and
Field Services' Standard Operating Procedure No. 3.01, "Customer Non-Pay Process,"
establishing guidelines to follow in performing the Non-Pay Process; and
WHEREAS, the adoption of Standard Operating Procedure No. 3.01 is recommended by
the City Council-appointed Utility Billing Review Committee in the Committee's May 2009 List
of Recommendations; and
WHEREAS, Redding Electric Utility Customer and Field Services operates Standard
Operating Procedure No. 3.01 in conjunction with City Council Policy 1402, Collection of
Delinquent Utility Accounts, and City Council Policy 1404, Late Fees and Utility Deposits.
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Redding
that Redding Electric Utility Customer and Field Services' Standard Operating Procedure No.
3.01, Customer Non-Pay Process, be adopted as set forth in the standard operating procedure
attached hereto and made a part hereof.
I HEREBY CERTIFY that the foregoing resolution was introduced, read, and adopted
at a special meeting of the City Council on the 15th day of June, 2009, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Dickerson, Jones, McArthur, Stegall, and Bosetti
None
None
None
7c;k ~c-to-
RICK BOSETTI, Mayor
Attest:
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Form Approved:
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P AME~A)\1IZE, Assis!ant City Clerk
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Attorney
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REDDING ELECTRIC UTILITY
CUSTOMER AND FIELD SERVICES
STANDARD OPERATING PROCEDURE
S.O.P. NUMBER: 3.01
SUBJECT: Customer Non-Pay Process
EFFECTIVE DATE: 09.01.06
REVISION DATE: 05.07.09
APPROVALS:
Paul Hauser, Electric Utility Director
Date
Bernard Fargen, Customer and Field Services Manager
Date
Date
Bonnie Evans, Customer Service Supervisor
Date
Jan Froeber, Customer Service Supervisor
Vince Karlson, Customer Service Supervisor
Date
Date
Jacob Knudsen, Utility Field Services Supervisor
Date
Eileen Laurance, Electric Utility Manager - Technical Services
Monica Tolen, Electric Utility Manager - Customer Contact
Date
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REDDING ELECTRIC UTILITY
CUSTOMER AND FIELD SERVICES
STANDARD OPERATING PROCEDURE
S.O.P. NUMBER: 3.01
SUBJECT: Customer Non-Pay Process
EFFECTIVE DATE: 09.01.06
REVISION DATE: 05.07.09
1.1 Purpose
The purpose of this procedure is to establish consistent guidelines for Customer and Field
Services to follow in performing the Non-Pay Process.
1.2 Employee Responsibility
It is every employee's responsibility to comprehend and follow procedures for the
Non-Pay Process.
1.3 Non-Pay Process Prior to the Disconnection of Utility Services
After the monthly utility bill has generated, Customer and Field Services' Enterprise
Customer Information System (E-CIS) allows twenty (20) calendar days for the customer
to pay the current bill unless the customer has a preferred due date or if the twentieth
(20th)day falls on a weekend or holiday. If the twentieth (20th) day falls on a weekend or
holiday, then the due date of the bill will be on the following business day. Utility bills
that remain unpaid after the due date shall be deemed late (Resolution 99-109).
1.3.1 Prior to the disconnection of services, the Late Notice and the Final
Disconnection Notice are mailed to residential customers, including life-support
and lifeline customers, as well as commercial customers and medical facilities
(Resolution 99-109). The Late and Final Disconnection Notices are automatic
account extensions that provide customers additional time to pay their late bill.
1.3.2 Late Notice
The E-CIS billing system automatically generates a Late Notice, which is mailed
to the customer, if payment is not received and posted to the utility account by the
due date of the bill.
1.3 .2.1
The Late Notice is an automatic account extension that provides the
customer an additional fifteen (15) days from the date issued to pay the
amount due on the notice. When a Late Notice is generated and mailed, a
corresponding fee is applied to the utility account.
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1.3.2.2
1.3.2.3
1.3.2.4
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For government agencies, the account will be deemed late fifty (50) days
after the date issued (Resolution 99-109).
The Redding Electric Utility Energy Services Division is notified when
the Late Notice is issued for a Key Account.
Life-Support customers and Medical facilities will be sent the Late Notice
via certified mail, and a copy of that notice will be sent to any known third
party. In addition, a copy of the notice will be forwarded to the City
Attorney's office (Resolution 99-109).
1.3.3 Final Disconnection Notice
1.3.3 .1
1.3.3.2
1.3.3 .3
1.3.3 .4
1.3.3.5
If payment is not received and posted to the utility account within the Late Notice
period, E-CIS automatically generates a Final Disconnection Notice that is mailed
to the customer.
The Final Disconnection Notice is an automatic account extension that
provides the customer seven (7) additional days after the due date of the
Late Notice to pay the amount due on the notice. When a Final
Disconnection Notice is generated and mailed, a corresponding fee is
applied to the account.
Payment must be received by 11:59 p.m. (Pacific Standard Time)on the
due date of the Final Disconnection Notice or services will be subject to
disconnection without further notification
If payment of the notice amount is not received and posted by the
expiration of the Final Disconnection Notice, then all charges associated
with ~ 1.5.2 will be required either to avoid service disconnection or for the
reconnection of utility services. The expiration of the Final Disconnection
Notice occurs at II :59 p.m. (PST) on the due date of that notice.
Utility accounts with a combination of three (3) or more Returned
Payment Notices and/or Final Disconnection Notices within a twelve (12)
month period will be assessed the appropriate deposit if there is no deposit
on file for that account (Council Policy 1404).
The Redding Electric Utility Energy Services Division is notified when a
Final Disconnection Notice is issued for a Key Account.
1.3.4 Account Extensions and Amortizations
1.3.4 .1
Customers who are eligible for an extension must have a good payment
history (per ~ 1.3.4.3). Account extensions may be granted up to three (3)
days beyond the original due date and are available one time within a
twelve (12) month period.
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1.3.4.2
1.3.4 .3
1.3.4.4
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Customers with a good payment history (pers 1.3.4.3) may also be eligible
to amortize an outstanding balance. The amortization of an outstanding
balance may be granted for a period not greater than twelve (12) months.
Amortization beyond twelve (12) months must be approved by the
Manager of Customer and Field Services, or designee (Resolution 99-
109). Amortization of an outstanding balance is available one time within
a twelve (12) month period.
An account with a "good payment history" is defined as an account which
received a combination of less than three (3) Final Disconnection Notices
and! or Returned Payment Notices within the previous consecutive twelve
(12) months and not having been disconnected within the previous
consecutive twelve (12) months.
Commercial customers may be granted amortization of their unpaid
balance at the discretion of the Manager of Customer and Field Services,
or designee.
1.3.5 Non-Pay Process Exceptions
1.3.5.1
1.3.5.2
1.3.5.3
Extreme and Unusual Hardship: Services may be continued up to ninety
(90) days by the authority of the Redding Electric Utility Director, the
City Manager, or designee, in cases of extreme and unusual hardship
(Resolution 99-109 and RMC SI4.20.020 (e)).
Dispute of Utility Billing: The utility account will not be terminated for
Non-Payment of the disputed bill if the customer issues a complaint or
requests an investigation into the utility charges within twenty (20) days of
the issuance of the disputed bill. Within ten (10) days, Customer and
Field Services will respond with an explanation of the disputed charges.
The customer can then request a hearing with the Customer and Field
Services Manager, or designee. The customer may appeal to the Redding
City Council within thirty (30) days of that hearing to review the
Customer and Field Services Manager's decision ifso desired (Resolution
99-109).
Master Meter Non-Pay: In Non-Pay situations where utility services are
furnished to customers through a master meter and the owner or manager
is the utility customer (Resolution 99-109), the following shall occur:
(1) At least ten (10) days prior to the scheduled disconnection
of services and after all notices have expired, Customer and
Field Services will leave a door hanger to inform the actual
users that services are pending service disconnection.
(2) Service will continue to be provided if one or more of the
actual users have met the conditions for utility service and
are willing to assume responsibility for subsequent utility
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1.3.5.4
1.3.5.5
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charges and deposit for the entire premise. Tenants in this
situation will not be responsible for the owner or manager's
late charges.
Returned Payments: Returned Payment Notices are sent when a
customer's form of payment (whether by check, Electronic Funds Transfer
(EFT), or credit card) is returned. In the event of a returned payment, the
following shall occur:
(1) The Returned Payment Notice states that the customer has
seven (7) calendar days from the date of the Notice to bring
the account to a current status to avoid disconnection of
services. A Returned Payment Fee is added to the account.
(2) A Disconnect for Returned Payment Service Order (DNSF)
is created by a Customer Service Representative (CSR) if
the returned payment remains unpaid and the total amount
of the returned payment plus the Returned Payment Fee is
more than $50 for residential customers and $100 for
commercial customers.
(3) Payment must be made in the form of guaranteed funds,
which include cash, traveler's check, money order,
cashiers' check, or payment made in-person using
credit/debit card.
(4) Utility accounts with a combination of three (3) or more
Returned Payment Notices and/or Final Disconnection
Notices within a twelve (12) month period will be assessed
the appropriate deposit if there is no deposit on file for that
account (Council Policy 1404).
(5) Utility accounts with three (3) or more returned payments
due to non-sufficient funds within the previous consecutive
twelve (12) months may be placed on a cash-only basis.
Utility accounts placed on a cash-only basis will be
required to make utility payments in the form of cash
money order, cashier's check, traveler's check, or in-person
using a debit/credit card. These accounts will be eligible
for review after a twelve (12) month period oftime.
Customers with a history of paying monthly utility bills on or before the
due date throughout the previous consecutive twelve (12) months may
receive a vacation hold on their account for a maximum of one (1) month.
Requests for a hold beyond one month may be granted with a supervisor's
approval.
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1.4 Non-Pay Process on Day of Disconnection
The E-CIS billing system automatically generates a list of non-pay accounts and
corresponding service orders. The list is reviewed to verify which accounts should be
disconnected.
1.4.1 At the end of each business day and after all notices have expired, a list of
accounts where utility services have been disconnected is faxed to Redding Power
along with a list distinguishing which accounts are eligible for After Business
Hours Reconnection and which accounts are not eligible for After Business Hours
Reconnection.
1.4.2 Customers with a history of paying monthly utility bills on or before the due date
throughout the previous consecutive twelve (12) months will receive either a
phone call or a door hanger on the day of the scheduled disconnect. The premise
will be scheduled for disconnection on the following business day.
1.4.3 Field Activities on The Day of Disconnection
1.4.3.1 Customer Service Workers (CSWs) may only collect payments in the
field if the following applies:
(I) The customer is elderly or has a mobility issue.
(2) Customers with a history of paying monthly utility bills on
or before the due date throughout the previous consecutive
twelve (12) months who received a door hanger.
(3) Field Collection Fees will not apply in these instances.
1.4.3.2 Access and Safety Issues: When a CSW encounters a child alone, an
access problem, or any situation which may result in an unsafe work
environment, the following shall occur:
(I) The CSW must notify the supervisor of the situation and the
supervisor will determine the best course of action. The CSW
will leave a door hanger if the service order is not completed on
that date.
1.5 Service Restoration after the Expiration of the Final Disconnection Notice and
Service Disconnection due to Non-Payment
1.5.1 The expiration of the Final Disconnection Notice occurs at 11:59 p.m. (PST) on the
due date of that notice. When the Final Disconnection Notice expires, services will
be disconnected without further notification and the customer must pay the
minimum amount owed (per S1.5.2) with guaranteed funds (per 1.3.5.4 (3) ) to
either avoid service disconnection or to reconnect utility service.
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1.5.2 The mInimum amount that the customer must pay to either avoid service
discomIection or to reCOmIect utility service after the expiration of the Final
DiscomIection Notice consists of the following:
(I) The entire outstanding balance due on the ledger including all late
charges, current charges, and the closing bill
(2) The appropriate recomIection fee (if applicable per S 1.5.2.1 (2))
(3) Any outstanding or additional required deposit
(4) Any previous Bad Debt still owing
(5) The Manager of Customer and Field Services, or designee, may
alter the minimum criteria required to avoid discomIection or to
reCOmIect utility services in cases of extreme or unusual hardship.
1.5.2.1
The following are exceptions to the minimum amount due to either avoid
discomIection of services or to reCOmIect services:
(I) The deposit may be amortized for a maximum of four (4)
installments, for a customer with a good payment history
(per S 1.3.4.3 ).
(2) Payment of recomIection fees may not be required in the
event that the Final DiscomIection Notice has expired but
utility services have not yet been discomIected at the meter.
1.5.3 For After Business Hours Service RecomIection (After 5:00 p.m.), Power Control
will inform customers of the following:
(I) The customer will be charged the appropriate After Business Hours
RecomIection fee.
(2) The customer must contact the Customer and Field Services Division
prior to 10:00 a.m. on the following business day or their service will
be discomIected again. If services are disconnected again, then
another RecomIection Fee will be required to reCOmIect services.
(3) Each customer is allowed one After Business Hours RecomIection
within a twelve (12) month period.
1.5.4 New customers applying for utility services at a location that was previously
discomIected for Non-Payment may be required to provide proper identification, as
well as a signed rental agreement from the property owner/landlord, or escrow
documentation, before utility services can be established (Resolution 99-109).
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1.5.5 When the City has previously disconnected services for Non-Payment at a location
where multiple tenants occupied a single residence, services will not be reinstated
for a new customer until the owner or landlord provides proof that all previous
tenants who were financially responsible have moved (Resolution 99-109).
1.5.5.1
Whenever one or more of the tenants responsible for the outstanding utility
charges continues to reside at such location, the minimum amount owed (per
g 1.5.2) must be paid before services can be reconnected (Resolution 99-
109).
1.6 Wrongful Disconnection of Utility Services for Non-Payment
1.6.1 Services wrongfully disconnected shall be restored without charge (CA Public
Utilities Code (PUC) g 1009.1 (h)).
1.6.2 Written notice of the wrongful disconnection of services and subsequent reset
shall be mailed to the customer's billing address (CA Public Utilities Code (PUC)
gIOOIO.1 (f)).
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