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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.