STAFF REPORT
CITY OF BURBANE
WATER AND
POWER
DATE: October 11, 2022
TO: Justin Hess, City Manager
FROM: Dawn Roth Lindell, General Manager, Burbank Water and Power y In r VIA: Sean Aquino, Assistant General Manager, Customer Service sen Operations
BY: Arineh Sarkissian, Manager Customer Service Operations Arineh8 Julie Carreon, Customer Service Supervisor
SUBJECT: Adoption of a Resolution to Apply for the 2022 California Arrearage Payment Program Through the State of California to Provide Assistance to Active Residential Ratepayers with Outstanding Balances Due to the COVID-19 Pandemic
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AUTHORIZING
THE PARTICIPATION AND APPLICATION TO THE CALIFORNIA DEPARTMENT OF COMMUNITY SERVICES AND DEVELOPMENT'S 2022 CALIFORNIA ARREARAGE PAYMENT PROGRAM (2022 CAPP); AUTHORIZING THE BURBANK WATER AND
POWER GENERAL MANAGER, AS DESIGNEE OF THE CITY MANAGER, TO
EXECUTE APPLICATIONS FOR AND UPON RECEIPT OF FUNDS APPLY CREDITS
TO DELINQUENT ELECTRIC ACCOUNTS AND ALL SUBSEQUENT CAPP PROGRAMS (Attachment 1).
BACKGROUND
In response to the COVID-19 Pandemic (pandemic), on March 4, 2020 California implemented a moratorium on electric, natural gas, and water utility disconnections to protect households that have been negatively impacted by the pandemic and are behind on their utility bills.
On November 16, 2021, the City Council approved the City of Burbank's participation in the California Arrearage Payment Program (CAPP) and the California Water and Wastewater Arrearage Program (CWWAPP). These programs were designed to provide financial assistance to residential and commercial customer accounts that had delinquent 1 utility balances of 60 days or more incurred during the pandemic, from March 4, 2020, through June 15, 2021. Through these programs, the city was able to • provide $1,688,603.12 in bill credits to approximately 2,225 electric customers and $597,004.79 in bill credits to approximately 2,169 water and wastewater customers.
Burbank Water and Power (BWP) continues to experience exponential growth in arrears.
Pre-March 2020, BWP's total customer debt was approximately $1.0 million dollars. As of September 26, 2022, BWP's current total customer debt is approximately $6.4 million.
DISCUSSION
2022 California Arrearage Payment Program (CAPP)
Funding established by Assembly Bill No. 205 (Chapter 61, Statutes of 2022) and as amended by Senate Bill No. 129 (Chapter 69, Statutes of 2021) for the 2022 CAPP will be administered by California's Department of Community Services and Development (CSD). Utility providers will apply directly to CSD on behalf of their eligible energy customers and will apply benefits directly to the identified customer accounts. The 2022 CAPP program differs from the 2021 CAPP program as it only provides funds to active residential electric accounts. Below are the program phases and due dates. 1) Application - Utilities may submit an application for funding request; the application period will be open from September 26, 2022 - October 26, 2022, for 30 days.
2) Benefit Delivery - Utilities will be responsible for disbursing benefits to eligible customers within 60 days of receiving 2022 CAPP funding; funds are expected to be tully disbursed to utilities by January 31, 2023. 3) Report - Utilities that receive 2022 CAPP funds are responsible for submitting a report to CSD on funds applied, schedule of accounts, and remittance of unapplied funds within 6 months of receiving 2022 CAPP funding.
Eligible Customers
The state has allocated $239,400,000 to publicly owned utilities and electric cooperatives, and $957,600,000 allocated to investor-owned utilities and community choice aggregators for the 2022 CAPP program. BWP has identified approximately 3,095 active residential accounts that have past due balances incurred during the period of March 4, 2020, through December 31, 2021, totaling $1,661,154.
Utilities must offer payment plans to all customers with remaining past due balances.
Customers with remaining past due balances cannot be disconnected for non-payment during the application process and up to 90 days after the 2022 CAPP benefit is applied to the customer account. Late fees and interest must be waived for all 2022 CAPP benefit recipients.
FISCAL IMPACI
State funding via the 2022 CAPP program will reduce unpaid past due balances for Burbank customers and reduce cost impacts on other ratepayers. 2 CONCLUSION
Due to the pandemic, BWP has experienced exponential growth in unpaid past-due balances for active residential accounts. 2022 CAPP funding from the state will assist struggling customers to decrease their past due balances, thereby reducing cost impacts to other ratepayers.
Based on guidance from the City Attorney's Office, a resolution is required for BWP to file an application on behalf of its customers with eligible past-due debt.
Staff recommends that the City Council approve the filing of the application for the 2022 CAPP, including any subsequent programs, and to make direct payment assistance via bill credits to active residential ratepayers with outstanding balances due to the pandemic.
Staff recommends that the City Council provide the BWP General Manager authorization to participate and execute any future applications and to apply credits from funds received from any future CSD CAPP programs.
ATTACHMENTS
Attachment 1 - Resolution
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