2019-020 Pay as You Go Prepaid UtilitiesDate: February 1, 2019 Report No. 2019-020
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
“Pay As You Go” Prepaid Utilities Public Launch
BACKGROUND:
The purpose of this report is to announce the public launch of the Pay As You Go prepaid utilities
program which was implemented as a pilot program in October 2018.
DISCUSSION:
The Customer Service department has partnered with MyUsage to provide residential customers an
option for Pay As You Go, a prepaid utility account plan. Advance payment for services ensures the
customer will not receive late payment penalties, interest or deposits. This both helps customers
prevent fees and utility debt while also offering greater visibility to their account status.
The program has initially been offered to residential customers who have experienced challenges
paying for utilities. As of January 31, 2019, 50 customers are currently active on the program and
only 5 accounts have been closed for any reason.
Of all accounts created in the Pay As You Go pilot, 47 customers entered the program with
outstanding utility balances that would prevent account set up without payment of the outstanding
balance and prepayment of a deposit. These customers were able to begin services immediately and
48% are not only current on their utility services, but also are free of any past utility balances. From
the standpoint of revenue collections, these 47 customers represented $17,753.26 in outstanding debt.
Since October, $7,183.74 (40.46%) of the funds have been recovered while preventing any burden of
additional fees or penalties to the customer.
In addition to these benefits, Pay As You Go also gives the customer tools which increase account
awareness. The customer account portal enables users to monitor daily fund balances and electric
consumption. The information can be used both for electric savings and as an electric conservation
tool.
CONCLUSION:
The program has shown to be a successful option for customers facing financial difficulties. It also
offers a new level of customer engagement in residential electric saving and usage habits. As such,
we are expanding the program with a full public launch. The attached brochure is scheduled to mail
out in customer’s utility bill starting Thursday, February 7, 2019.
STAFF CONTACT:
Tiffany Thomson, Director of Customer Service
(940)349-7401
Tiffany.Thomson@cityofdenton.com
www.cityofdenton.com ADA/EOE/ADEA TDD: (800) 735-2989 Pub. 07/18
CITYOF
a prepaid utility option that puts you
in control of when you pay your
City of Denton utility bill.
Pay As You Go with
Customer Service:
(940) 349-8700CITYOF
When you choose to Pay As You Go
with MyUsage, your utility bill becomes
similar to putting gas in your car- when
the gas tank gets low, it’s time to refill it.
The MyUsage website and app is a tool that
lets you track your utility usage and shows
how much money you have left on your
prepaid account. When the account gets
low, you’ll get a notification to add more
money. This frees you from late fees,
deposits, and reconnect fees.
YOUR MONEY
The Pay As You Go program puts you in control of
your bill. You don’t have to wait for a monthly bill
to make a payment. Instead, you have the ability to
pay as much as you want, when you want, and how
you want. As long as your balance does not fall
below zero, you will not be disconnected.
YOUR USAGE
Studies have shown that customers who use
prepaid billing programs such as Pay As You Go,
tend to incur less costs because they are more
aware of how much they are spending. Through
the Pay As You Go MyUsage.com portal, you can
check your daily balance, monitor consumption,
and receive alerts via text, email, or phone.
YOUR PLAN
Some customers prefer to make weekly or
bi-weekly payments instead of one large payment
every month on their account. City of Denton’s
Pay As You Go program gives you that option.
City of Denton Customer Service:
(940) 349-8700
Call Customer Service if you would like to sign up
for Pay As You Go with MyUsage, or if you have
questions about the program.
Making Payments
When you need to add money to your account, you
can make a payment in any of these ways:
• Online at MyUsage.com.
• With a customer service representative from
8 a.m. to 5 p.m., Monday through Friday by
phone at (940) 349-8700 or in person at
601 E. Hickory St., Ste F.
• At the kiosk outside the building at
601 E. Hickory St., Ste F, 24 hours a day,
7 days a week.
• You can also use any MoneyGram location to
transfer funds to your account.
Email, text, and phone call alerts are available to
warn you when your account balance is running low.
Managing Your Account
To manage your MyUsage account and track your
usage, download the MyUsage app from the Apple
App Store or Google Play and register to create an
account, visit www.MyUsage.com, or call MyUsage
at (855) 274-1340.
www.cityofdenton.com
How to Sign Up
To participate in the Pay As You Go program, call
the City of Denton Customer Service department at
(940) 349-8700 Monday-Friday, 8 a.m. to 5 p.m.,
and ask to be enrolled in Pay As You Go.
How to Make Payments
When you need to add money to your account, you
can make a payment in any of these ways:
• Online at MyUsage.com.
• With a customer service representative from
8 a.m. to 5 p.m., Monday through Friday by
phone at (940) 349-8700 or in person at
601 E. Hickory St., Ste F.
• At the kiosk outside the building at
601 E. Hickory St., Ste F, 24 hours a day,
7 days a week.
• You can also use any MoneyGram location to
transfer funds to your account.
Email, text, and phone call alerts are available to
warn you when your account balance is running low.
Managing Your Account
To manage your account and track your usage,
download the MyUsage app from the Apple App
Store or Google Play and register to create an
account, visit www.MyUsage.com, or call MyUsage
at (855) 274-1340.
Frequently Asked Questions
What is the cost to start Pay As You Go?
In most cases, a minimum of $50 is required in order
to activate an account. The Pay As You Go program
does not require a deposit or charge any monthly
fees.
What if my Pay As You Go account runs low?
Customers can elect to receive alerts via text, phone,
or email when their account balance reaches a
certain level. The alert levels can vary depending on
what the customer decides. When notified of a low
balance, simply add money to the account.
Will I still be required to pay a deposit?
No. Pay As You Go customers do not pay a deposit.
The money you pay on your account goes strictly
toward paying for your utilities.
How much money should I keep in my Pay As
You Go account?
That is entirely up to you! The great thing about the
Pay As You Go program is that it is designed to fit
any budget. You can purchase enough utility usage
to last until your next pay day or even the entire
year. When it’s time to add funds to your account,
$50 is recommended as a great starting point, but
it’s your choice. In the event that your balance falls
below zero, a $25 minimum credit balance is re-
quired to restore services.
Will I still receive a monthly statement?
No. Daily notifications eliminate the need for
monthly statements. If you want to view past usage,
you can simply sign into your MyUsage.com account
or utilize the MyUsage app.
What do I do if my utilities are disconnected?
If the balance falls below zero, the service will be
subject to disconnection. To restore services,
simply recharge the account by making a one-time
payment. Once you meet the minimum $25 credit
balance, the services will be restored with no
additional fees.
Is Pay As You Go only available to new
customers, or can I switch over?
Existing customers are welcome to convert their
account to Pay As You Go at anytime. In fact, doing
so can provide some advantages to customers with
existing deposits by immediately putting that
money to work for them.