20100504Pilot Summary Study.pdf

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Apnl30,2010
Jean Jewell, Commssion Secreta
State of Idao
Idao Public Utilities Commssion
Statehouse
Boise, ID 83720
Re: AVU-E-07-09
Dea Ms. Jewell:
Attched for filig is an electronic copy of the "Sumar Study on A vista Utilities
Remote ReconnectJisconnect Piot." An original and 7 copies is being provided via
overnght ma.
On Apnl 25, 2008, Avista reueste that the Commssion approve a pilot progr for
"Remote DisconnectJeconnect" and reuested that the Commssion issue in its order
providig the Company with a lite waiver of IDAPA 31.21.01 (311.03) and (311.04)
(Utility Customer Relation Rules) for the term of the pilot. The pilot was intende to
implement a system for remote disconnection and reonnections, without the nee for an
employee visit to the afected premises.
On July 30, 2008, the Commssion, in Orer No. 30603 state that "Upon the expirtion
of the 18-month approved term for the pilot program, A vista shal prepar and fie a
detaed report with the Commssion documenting its findigs and utilizing the data
identied in its Revised Application, as well as any other useful and relevant data which
could be used to assess the effectiveness of the remote disconnect and reconnect progr
in reducing the Company s overal operatig costs, enhancing employee safety or
improving the quality of service to its customers."
The 18-month pilot program expir on Januar 29,2010. Per the reportg reuirments
of the pilot progr as detaed in the Company's fing and the Commssion Orer No.
3063, Avista reuested 90 days to .complete and report on the results of the pilot
progr.
The Company requests that we contiue the terms of the pilot to include the lite
waiver of the above mentioned rule for the customers that ar curntly parcipating and
curntly have a remote switch instaed unti such tie that the Commssion has had the
opportnity to assess the effectiveness of the remote disconnect and reonnect program.
If you have any questions regardig ths lettr, please let me know or you can contat
Greg Paulsen at 509-495-4976.
Sincerely,
IJIL~Gef~
Linda Gervais
Manager, Regulatory Policy
State and Federa Regulation
A vista Utilities
509-495-4975
linda. gervais (g avistacorp.com
¿'\\JiI'STA~
r,.ro
Sum'mary Study on Avista Utilities
Remote Reconnect/Disconnect Pilot
Case No. AVU-E-07-09
Introduction
In compliance with Idaho Public Utilities Commssion (hereinafr the Commssion or Sta
Order No. 30603, Avista Utilities provides its sumar study on its Remote
ReconnectJisconnect (hereinafr referred to as remote switch or service switch) Pilot Prgram.
The 18 month pilot began July 30, 2008 and complete Januar 29, 2010.
The nee to disconnect non-paying electrcal customers or to avoid a potential safety risk is
nothg new for utilities, but the tools of today alow for more effcient handlng of these ar
or unque situations. Due to large service areas and long feeers in the Company's Idao servce
terrtory, signficant windshield time is reuir to manualy disconnect these customers.
Today's tehnology alows re-tie remote disconnection and reconnection of meters,
providing signficant cost savings and reucing the utity's exposur to potentialy dagerous
situations.
According to researh conducte by Charwell in 2005, over 50% of electrc utilities ar either
presently using or are considering deploying remote reconnect/disconnect solutions to help lower
costs and improve customer service, parcularly for seaonaly occupied and hard to acess
customers. In their October 2008 study "Makng a Case for Remote ConnectJisconnect,
Charell stated "...demand for smar meters with internal service switches that can be activate
by commands sent along the AMI network is on the rise. Most meter manufactues now make
meters with an internal, remotely activate connect/disconnect service switch. Plus, as par of the
RF pross, may utilities plang for AMI ar includig criteria for remote disconnect
meters. ...many withn the industr note that regulators are more supportve of remote
connect/disconnect th in past yea; in some cases they ar reuirg it as par of the
AMdemand response strategy criteria."
Sensus Meterig Systems of Raleigh, N.C., report that 71 % of its 2008 electrc utity RFs
requir remote connect/disconnect. In comparson, in 2007, only 35% of electrc utities
reuir remote connect/disconnect.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 2
Background
A vista originaly filed its application seeking approval to implement a one-year pilot progr for
remote reonnects and disconnects with the Commssion on August 30, 2007. The Company also
reueste a lite waiver of IDAPA 31.21.01 (311.03) and (311.04) (Utity Customer Relation
Rules) for the term of the pilot. The Commssion approved the 18 month-pilot on July 30,2008
in Order No. 3063.
Customers selecte for the pilot included customers with 200 amp services that met at least one
of the following crteria:
· Prmises where employee safety is a concern, i.e., customers who have thtened
to har Avista employees or property, premises where there is a dager frm
ans, or premises that have an obstrcte acss to the meter;
. Customers who have previously had two field collection visits or disconnection in
the precedg 12 months; and
. Excluded were A vista CARS customers, customers subject to the moratorium,
who are on a winter payment plan; who have provide medcal certcates, or
who have made satisfactory payment argements.
The Company propose in its origial application to keep the curent authorize
reonnection fee at $24 durng regular business hour and $48 afer hour. Certn Pares,
however, believed that A vista would see a savings in cost by not having a field representative on
site and asked that these costs be passed to the customer. Even though A vista continued to
believe that the customers who cause the Company to incur additional expense should bear those
costs, for purses of the pilot, the Company agree to reduce the charge to 50% of the normal
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 3
reonnect fees. Ths resulted in fees for parcipating customers of $12 durg normal business
hour and $24 ü reconnection was performed afr hour.
Scope of the Pilot
The pilot progr included the instaation of approximately 60 remote disconnect
collar using a combination of Two-Way Automatic Communication System (TW ACS~) and
Pagig tehnologies. TW ACS(ß is a tehnology that alows communcations across power lies
to a reconnect/disconnect collar at the electrc meter. A map of the service points is provided in
the Appendices to ths study. Ths capabilty alowed remote disabling/enablig of the electrc
service frm Avista's offce. TW ACS(ß switches provide notification back to the Company
dispath offce as to whether or not the signal to reonnect/ disconnect was successfu. The
wirless Pagig switches were used in aras that were not covere by the TW ACS(ß network and
alowed communcation to a collar at the electrc meter which alowed remote disabling/enablig
of the electrc servce. Pagig switches do not provide a notification of switch status back to the
Company's dispatch offce. The proposed pilot intended to implement a system for remote
disconnection and reonnections, without the nee for an employee visit to the afecte premises.
Anticipated benefits included:
· reducing operating and maintenance expenses related to multiple disconnections and
reonnections for urban and ru acounts;
. productivity gains of employees by elinatig multiple trps to customer homes for
collections;
. enhanced employee safety;
. quicker response tie to reonnect service leag to increased customer satisfaction;
and
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 4
· recognzig a reduction in bil defaults and wrte-offs by encourgig prompt consumer
payment over tie.
Customer Notification
In order for the pilot to be effective and achieve the desir results, A vista requeste a waiver of
rue IDAPA 31.21.01 (311.03) and (311.04) for those accounts included in the pilot progr.
Speifcally, at the tie the disconnect device was instaled, an Avista employee would mae an
attempt to personally contact the customer and a special notice was left with the customer (ü
personal contat was made) or on the premises (if customer was not home). The Company
worked with Sta to develop the special notice, ths notice is included in the Appendices to ths
report.
The next tie the customer was eligible for disconnection, the Company would not be requir
to physically visit the premises to disconnect or reconnect the meter. However, the Company let
the custOmer know of the disconnection or reonnection by following its curnt notication
procss 1, but without otherwise sending an employee to the premises.
Al meters with the device attched were flagged as par of a pilot program and entere into the
Company's customer service system. The Company continued to be otherwise compliant with
rule IDAPA 31.21.01 (311.03) and (311.04) with al customers not included in the pilot who had
ben disconnecte or reonnecte.
i Th bil is maled and due withn 15 calenda days, afr which the Company allows a 3-day gr period for
paymnts to post. A Past Due Notice is maled afr the gre period ends, date 7 calenda days later. The Final
Notice is maled 3 business days before the past due notice expires. The Interative Voice Response System (I)
then calls the customer on the day the notice exgirs.
Avista Utilities Remote Reconnect/Disconnect Summary ReportApril 30, 2010 Page 5
Reporting Requirement & Summary of Results
Meaurement & evaluation is integr to defining benefits of a pilot program and identifying
ar for improvement or modfication. The data collection process for the pilot was a manual
effort due to the proess changes associated with working with new technology and the relative
size of the pilot level progrg. The results provided ar shown as parcipant or non-
parcipant. For purpses of the study, A vista has included Residential Rate Schedule 00 1
informtion only. The reason the other rate schedules ar not captu in ths study is beause of
a very small parcipation, their complexity, and the minial amount of relevant data. An
account can have multiple meters and rate schedules associated to that account; 98% of the pilot
parcipants ar on residential rate schedule 00 1. A vista believes ths study captures all relevant
data frm its parcipants. The following is the data that A vista and the interested pares defied
to be collected thughout the pilot. Ths data has ben collected as effectively as possible:
· The tota number of customers selected for the pilot, the reon for selection, and the month
of instaation of disconnection device.
Partcipants
2008 200 Totl
9 10 11 12 1 2 3 6 7 8 9 10 11 12
BAD DOG 1 1 3 2 7
SAFET 2 3 3 8.
METER ACCESS 3 5 2 10
QUALIFYING EVENT 17 150 145 66 67 119 4 1 2 1 3 1 1 1 578
The average number of Idao residential electrc customers durng the pilot period was 104,500.
The system automaticaly assigns, in order, the value of a qualng evenr if a service switch
should be instaed in that speifc service terrtory. Due to the programg logic, the majority
of the parcipants landed in the qualfyig event category. However, may of the service visits
2 A quafyng event is a customer who ha previously had two field collection visits or disconnection in the
preng 12 month.
Avista Utilities Remote Reconnect/Disconnect Summary ReportApril 30, 2010 Page 6
that resulte in the insta of a remote collar would have qualed the accounts for a remote
switch based on a safety or meter access thugh field observation.
· The tota number of disconnect devices instaed by typ (TW ACS(ß or Pagig) and by
month.
c 2008 2009
9 10 11 12 1 2 3 6 7 8 9 10 11 12 Total
PAGING 2 91 120 55 42 102 7 1 4 1 1 426
TWACS.15 62 35 17 26 24 2 1 1 1 2 1 187
613
Ths number of disconnect devices is higher than the number of parcipants beause A vista
may have instaed multiple collar at the same premise at different ties for a number of
reaons including: process, technology, and device failure.
· The tota number of remote disconnections by month, and reon for disconnection (e.g.,
non-payment of bil or failur to pay deposit).
Partcipants
..
2008 200 2010 Total
. .10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 i.c.
BROKEN ARRANGEMENT 1 1 1 3'
NON PAYMENT BALANCE 1 14 18 87 69 78 83 64 63 56 51 33 46 47 34 42 786
RETURNED PAYMENT 2 3 3 1 1 6 9 1 4 2 1 2 3 2 1 41
BALANCE&DEPOSIT 10 10 24 17 31 29 29 27 19 10 17 9 13 7 8 260
..1,090
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 7
Non-Participants
.
200 200 2010
8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 Total
BROKEN
ARRANGEMENT 1 3 1 2 1 4 4 6 5 3 3 4 3 40
NON PAYMENT
BALANCE 333 430 312 247 149 244 362 632 722 564 630 488 407 317 352 436 229 398 7,252
RETURNED
PAYMENT 17 20 16 14 4 4 8 20 31 7 25 18 16 13 13 18 7 7 258
BALANCE &
DEPOSIT 72 110 85 64 26 52 48 116 155 139 158 136 132 118 108 137 52 79 1,787
DEPOSIT 1 1 1 1 1 1 1 7
9,344
· The tota number of customers who were disconnected durg the pilot period:
Once
Twice
Th or more ties
Participants Non-Participants
Residential Accounts Disconneced Residential Acounts Disconnected
during Pilot by Number of during Pilot by Number of
Disconnections Disconnections
1 I 2 I 3+I 1 I 2 I 3+
001 1681 104 I 178 # Acet I 6,486 I 1,012 I 258
The high number of parcipants where the remote switch was used for disconnect th or more
times is a result of the qualfyig event criteria. Customers who had two field collections visits
or disconnection in the proeeng 12 months is an indicator that the customer has consistently
not make satisfactory payment prior to collections rather than an occasionally slow paying
customer and therefore, ar less liely to change their behavior following the instaation of the
service switch.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 8
· The tota numbers of customers who were disconnected and reeived a LIHAP benefit one
or more ties durng the pilot period.
Participants Non-Particpants ..
Accounts disconnected during the 107 Accounts disconnected during 1,236
Pilot & Received L1HEAP the Pilot & Received L1HEAP
% of Pilot Participants Disconnected 16%% of Pilot Participants 19%
during the Pilot Disconnected during the Pilot
The percentage of LIHAP recipients disconnecte durng the pilot for both parcipants and
non-parcipants, demonstrtes that the use of remote technology was not used to taget any
customer group including customers receiving Energy Assistace.
· The tota number of instaces where a customer was not reconnected withn 24 hour
following a disconnection. * Accounts that closed at tie of disconnect have been removed
from the following counts.
Participants Non-Participants .
. instnces . instnces
Residential I 103 Residential 11,819
The number above represents approximately the same percent; ths is a diffcult number to
compar since it is outside the Company's control as it relates to whether the customer paid or
made satisfactory argements in order to restore their service, each customer has their own
unique situation.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 9
· By device ty, the tota number of instaces where the disconnection device failed to:
Disconnect a customer following remote activation; and
Reconnect a customer following remote activation.
Discnnec Reconnect
Paging 41 9
TWACS.7 5
Different failur modes were encountere durng the pilot progr. For the TW ACS(ß service
switches, the primar failure mode was a hardware failure in the service switch. For the Paging
service switches there were two priar failur modes, the firt mode was a hardware failure of
the service switch, and the second was related to the paging service that was either intermttnt
or inconsistent.
· The mium, maxmum and average lengt of tie frm remote disconnection to remote
reconnection.
Participants Non-Partcipants
Min Max Avg Min Max Avg
8min 293 hrs 9.5 hrs 12 min 725 hrs 22 hrs
The average tie frm remote disconnection to remote reonnection is agai a diffcult number
to compare since it is outside the Company's control when it relates to when the customer paid
or made satisfactory argements in order to restore their service.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 10
· Instaces where the customer was disconnecte for non-payment, the minimum, maximum
and average lengt of tie frm when the customer paid or made satisfactory argements
and reconnection.
Participant Non-Participants
Min Max Avg Min Max Avg
1min 15 hrs 24 min 2min 74 hrs 2.6 hrs
Ths data demonstrtes the improved customer service provided to parcipatig customers.
Once the customer paid or made satisfactory arangements, the service was reconnecte in an
average of 24 miutes as compar to 2.6 hour for non-parcipatig customers.
· The tota number and natu of inquires, complaits, or comments (negative or positive)
received from customers who had a disconnection device instaed.
Two complaits have ben filed with the Commssion for accounts with a remote switch
instaed. Neither of the complaints was regarng the remote switch technology.
· Any evidence that instaation of the disconnection device inuenced customer behavior
(psitive or negative).
Yes, customers that had the service switch instaed were more liely to have a field reuest
for disconnect durg the year prior to the instaation of the remote switch than in the yea
following instaation.
Increase in the number ofarrëlngements kept in the year prior to install of
remote switch as copare to the following year.
# Times -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 Total
# Accts 0 2 2 8 19 51 99 75 ..28 7 3 1 330
Prior to.lnstall 82 After Install 149
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 11
For example, the char above ilustrtes: 35 accounts kept 2 more argements durng the year
following instaations when compared to the prior year.
The number of payments made by al parcipant accounts increased afer instalation.
3,887
4,235
ents
ents
The criteria used for puroses of the pilot lite utilization of the service switch. Out of the
558 accounts parcipating, 202 customers closed their accounts. Oftn those customers opened
new accounts and then the Company was unable to contiue using the remote tehnology on the
existing premises and therefore, lost the benefit and understading of the impact the service
switch may have had on their behavior.
Detailed analysis of costs, cost savings, and non-monetary
benefits of pilot program.
Costs
The material costs for the pilot were $130,4063 and the projected labor savings was $99,0594.
The projected labor savings were calculated with the following assumptions:
Labor
Varous craf categories perform normal collections activities depending upon the location.
In the rual areas, collections ar typically performed by lieman, as opposed to more uran
aras where an outside serviceman (only performs collections work) performs ths work. A
blended rate for the categories was assumed at $32.50Ihour.
Normal versus Afer Hours
3 Includes all capita and materials loadngs.
4 Projecte labor savings were calculated though the end of
the pilot pha of th project (Januar 31, 2010). Labor
savings continue to acrue each month as the devices are still instaled in the field and utilize as collection events
ocur.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 12
The varous locations in Idao have slightly varng normal work hour which determe
whether the collections activity would be assumed to be "normal versus afer hour." Afer
hour work requirs a 2 hour minimum at 2 times the normal wage scale. For the purses of
calculations, normal hours were assumed to be any order completed between the hour of 8
a.m. and 4 p.m. Based on the diversity of deployment across urban and ru aras, and
estiated labor savings of ~ hour/order was used durig normal hour. A vehicle cost adder
of $1O/order was added to the tota cost also based on diversity of the areas served.
Orders Tota
Reconnects Normal $26.25 996 $26,145
Afr $140.00 310 $43,400
Disconnects Normal $26.25 1119 $29,374
Afer $140.00 1 $140
Tota $99,059
Non.Moneta Benefi
Overal, Avista's position is the Remote ReconnectJisconnect Piot has been an outstading
success. The moneta benefits captu above ar reflective of anticipated results frm a
savings perspetive. However, many of the benefits are not able to be captu by a single cost
meaurment. Ths section is meat to provide a description of some of the other benefits
captud durig the pilot. Challenges encountered durg the pilot wil also be discussed.
Safety
The single largest benefit for A vista employees that perform ths work has ben the abilty to
insta these devices once and then not have to visit the home agai. Whle a majority of our
customers are understadig of the process, and hold no il wil toward our employees, there
is a smal segment that pose a real theat to our employees. Performng ths work remotely
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 13
alows employees to avoid these potentialy volatile situations. Over the past year, A vista
has experienced a signficant incree of confntational customers acrss our service
terrtory and is tag precautions to protet al of our employees. Multiple employees have
commente regardig what a grt tool the remote switch technology is for the safety of our
field personnel.
Customer
The majority of responses from customers that were contated as a result of back offce
prosses that were implemente (see Process below) had positive comments and were
grateful that their power could be restore so quickly. Severa mentioned that they didn't
even see a company representative on their propert to restore the power, at which point we
would remid them they were equippe with the device that has alowed us to restore their
power remotely.
Employees
Oftn ties, one of the best indicators of the success of a new progr is acceptace by
employees. Ths progr has been an overwhelmg success from that stadpoint. As the
pilot progressed and the taget deployment of approximately 60 collar was reached, there
was a floo of requests frm employees and their mangers to continue the progr,
espeialy from ru areas where collections work is typicaly performed by liemen as only
a porton of their duties.
ProductivityÆffciency
Avista's maagers have ben seekig creative ways to instal these devices and yet stay
with the gudelies of the defined pilot program and the IPUC rues (using only for
restorig service) which is indicative of how much potential ths program has to drve
prouctivity/efficiency. Ths is espeialy tre in ru areas where lieman are performg
ths work. By reducing the collections workload, these employees ar better able to serve our
customers by performng their priar function of line work.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 14
Washigton
It is wort noting that in parel with the Idao pilot project, A vista implemente a remote
disconnect program in our Colvile, Washigton and Othello, Washington service aras as a
productivity meaur. The rules in Washigton State do not reuire on-site fial notication
before disconnection. Simiar results to Idao have ben achieved in Washington; however,
the understadig by company employees of when these devices could or should be deployed
has been much easier because there are no stipulations regardig qualyig events. It is also
wort notig that remote disconnects ar instaed whenever a potential safety concern arses
anywhere in A vista's Washigton service area.
Changes
Whe the overal success of the pilot progr outweighed any obstales encountere, the pilot
progr did encounter some chalenges along the way. The followig outlnes some of these
chalenges:
Technology
The firt challenge encountered was relate to the paging technology utilized by the
Nighthawk(ß remote disconnects. By design, the pagig system is a one-way push system
that doesn't provide any feeback. Ths presented chalenges as back offce dispatchers
performng the remote reonnect/disconnect did not have confation that the device
worked. Ths problem was quickly addressed by implementig a proedur whereby the
dispatchers caled the customer afer issuig the reconnect command to conf that their
power had been restored. Another problem encountere with the pagig system was
inconsistent/intermttent coverage in cert area compounded by some device faiures.
Prcess
As mentioned above, the back offce dispatchers were forced to implement procss changes
due to some of the technology litations of the pagig technology. In an effort to catch
some of the coverage issues and device faiurs at the tie of instaation, a process was
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 15
implemente to have field personnel call into the dispatchers and test the collar at the tie
of instalation. If coverage didn't exist, or a device faied, it was resolved durg the
instaation proess. These process changes aleviate many of the issues, however there
were still a smal number of device failures or intermttnt pagig coverage that resulte in
the devices having to be removed or replaced by field personnel.
Another proess challenge was relate to situations where a remote switch was instaed on a
meter and linked to an account in the customer service system following a qualng event.
The account was closed for a varety of reasons and a new account opened at the same
premises. The remote switch was still physically instaed on the meter; however, it was not
identied on the new account beause the new account had not yet had a qualfyig event.
At the next collection event a stadad field order was generate and field personnel were
sent to the premise. Upon arving it was discovere that a remote switch was instaed
creatig confsion for both the field personnel and the back offce dispatchers.
Company Proposed Outcome
Avista believes that a permanent waiver of Utity Customer Relations Rule - IDAPA 31.21.01
(311.03) and (311.04)5 should be grante as it applies to the instaation of a Remote
ReconnectJisconnect Device. Speificaly, afer the device has ben instaed, an Avista
s IDAPA 31.21.01 (311.03) - Opportty to Prvent Termtion of Servce - Immiately prng
ternation of servce, th employee designte to termnat servce shal identify himslf or herslf to the customer
or other responsible adult upon the premises and shall anounce the purse of the employee's prsence. Ths
employee shal have in his or her possession th past due acount reord of the customer and shal reuest any
available verification that the outstading bils ar satisfied or curntly in dispute before ths Commssion. Upon
presentation of evidence tht outstading bils ar satisfied or currntly in dispute before ths Commssion, seice
shall not be termnate. The employee shall be authorize to acpt full payment, or, at th discretion of the utility,
paral payment, and in such cas shall not termnate servce. Nothng in ths rule prevents a utility frm procing
with termnation of servce if the customer or other responsible adult is not on the premises at the time of
termnation.
IDAPA 31.21.01 (311.04) - Notice of Prur for Recnnecon Servce - The employee of th utility
designate to termnate service shal give to the customer or leave in a conspicuous location at the servce addrss
afecte a notice showing the time of and grunds for termnaton, steps to be taen to seur reonnection, and th
telephone numbers of utility persnnel or other authorize representaves who ar available to authorize
rennection.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 16
employee would no longer be reui to physically visit the premises to disconnect or reconnect
the meter. However, the Company wil let the customer know of the disconnection or
reonnection by following its curnt notification process6, but without otherwse sendig an
employee to the premises. At the tie of instalation, a special notice that was develope with
the assistace of the Commssion Sta wil be left at the premise. All meters with the device
atthed wil be flagged as having the remote device and entered into the Company's customer
service system.
The Company would lie to contiue to utili the existing service switches for parcipatng
customers when they beome eligible for disconnection for the following reasons:
· The safety, meter access and collection activity that qualfied the premises for a Service
Switch under the pilot still exist and therefore the switch continues to provide benefit to
the Company and the customer.
· The cost to remove the remote devices that the Company instaed as a result of the pilot
would be signficant.
· Many of the benefits accrued as a result of ths progr would be lost by removig the
remote devices from parcipants, not to mention that the customers would have an
interrption in their service to remove the device.
Many customers have grown comfortble with the idea of "curside collections"-avoidig
disconnection by paying at the last miute, even though they encountere substatial fees to do
so. Customers who ar famliar with the collections proess also have leared that Avista only
has a lited amount of tie to work the disconnect order before it becomes 'Too old to Work'
and the order is cancelled. The two maps provided in the Appendi ilustrte the location of the
parcipant remote switches in re, and locations of non-parcipants where collection orders
were 'too Old to Work' in green. A vista believes the data in ths study has shown that having the
remote device has had a positive impact on customer behavior and has improved service to the
customer by signficantly reducing the tie between payment and reconnection of service.
6 The bil is maled and due withn 15 calenda days, afr which th Company allows a 3-dy gr period for
paymnts to post. A Past Due Notice is maled afr th grac period end, date 7 caenda days later. The Fina
Notice is maled 3 business days before the past due notice expir. Th Interative Voice Respons System (IV)
then calls the customer on the day the notice expires.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 17
Therefore, the request of the Company would be to remove the qualfying event criteria and
instead alow the Company the discretion to instal service switches on any customer that is
eligible for disconnect. In order to support ths proess, and reuce confsion once there has
been an account change, we would also propose atthing the remote switch to the premise
instead of the account in the customer service system.
Under the terms of ths pilot, Avista agr to reuce the reconnection fee and afer hours fee by
50% for parcipatig customers. Going forward, A vista proposes to retu to the fu reonnect
fee of $24 and afer hour's fee of $48. The Company would nee to make an investment in
tehnology and back offce support sta to expand the service switch program beyond the scope
of the pilot. The Company contiues to believe ths should be paid for by the segment of
customers where remote switches are being instaed, rather than at the expense of al Idao
customers. The graph below shows Idaho collection field requests per account over a thee year
period and how they contiue to incree:
Idaho Collection Field Requests
600
4000
2000
0 2
.1 yr 2701
.2yrs 4252
.3yrs 5547
3
1376
2183
2842
4
696
1270
1667
5+
912
2730
4075
Requests per Account
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 18
Conclusion
As demonstrted by the above data and benefits, A vista considers the Idao Remote Reconnect
and Disconnect project a success even though ths pilot represented a very sma sample. As
with any pilot progr, there were techncal and proess chalenges that had to be worked
though. Overall, both the TW ACS(ß and Paging switches have proven to provide value for both
the Company and its customers. Enhancing the progr with the reommendations describe in
ths report wil make service switches a valuable tool for the safety of our employee's, the credt
and collections process, and should provide enhance customer servce to al of Avista's
customers by reducing the cost of collections and improving service restoration ties.
Safety of our employees is Avista's top priority. The service switch provides a tool that can be
used to help promote safety. As an example, aggressive dogs ar oftn used to deter utity
personnel frm doing their jobs. A vista has encountered a situation where an angr homeowner
thatened to releae their "pit-bull" to speifcaly attk a servicema. Others have ben
. theatened with physical har, someties with a gu in hand. Concern for safety is especially
importt when you consider these servicemen ar unared and in some cases, can be carg
in excess of $1,00 wort of collections on their route. There are also inerent safety risks
anyte an energized meter is pulled.
The Company believes that the remote operation of service switches utize for purses of ths
pilot saved signficant "windshield tie" for servicemen, which trslates into re dollar. An
A vista serviceman can spend considerable tie trvelig to and from the residence in question.
Ths accrues not only labor costs but vehicle fuel and maintenance costs. For rual communities,
service calls to reonnect customers routiely happen afer hour, incurg overte labor
charges and these disconnect activities oftn tae serviceman away from other responsibilties
that ar crucial to the performance of the utility, adding opportty costs into the equation.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 19
Ths pilot has also demonstrated that utilition of service switches were a benefit to the
parcipatig customers. On average, pilot parcipants had service restored six (6) . ties faster
than non-parcipants. Parcipants expressed their satisfaction regardig the quicker response to
the company dispatchers on multiple ocasions.
Based on the results of ths pilot study, A vista is hopeful that the Commssion and concerned
pares wil understad the overall benefits that the service switch brigs to A vista and its enti
customer base and support the Company's proposed outcomes.
Avista Utilities Remote Reconnect/Disconnect Summary Report
April 30, 2010 Page 20
APPENDICES CE
A VU-07-09 ZUlO HAY -4 AM to: 11
10 Remote Switch Pilot North
Palouse
Legend
* OfficeLocations
· RS Service Add
Ð Too Old Work During Pilot w E
K.
ID Remote Switch Pilot South
Legend
* OfficeLocations
· RS Service Add
Ð Too Old Work During Pilot w E
Avis....
Utilities
1-888-427-3403
ww.avistautilities.com
Your electric service was disconnected today.
Your residence or business was selected to
be part of a pilot program approved by the
Idaho Public Utilties Commission. A device
was installed on your electric meter to allow
Avista to disconnect or reconnect your
service remotely.
In the future, Avista wil not nee to send
a field representative to your service
location to disconnect or reconnect
service. You wil not have the opportunity to
pay a field representative at your door to
avoid disconnection. No notice wil be left for
you at the service location following
disconnection. Avista wil continue to send
notices and attempt to contact you by
telephone in advance whenever it intends to
disconnect service. It is very important that
you call Avista to make sure all your contact
information, including telephone number, is
correct. You may reach Avista at the number
below.
1-888-27-3403
ww.avistautilities.com
SEE REVERSE SIDE FOR
IMPORTANT INFORMATION
~JVIS"'..
Utilities
1-888-427-3403
ww.avistautilities.com
Your electric service was disconnected today.
Your residence or business was selected to
be part of a pilot program approved by the
Idaho Public Utilties Commission. A device
was installed on your electric meter to allow
Avista to disconnect or reconnect your
service remotely.
In the future, Avista will not nee to send
a field representative to your service
location to disconnect or reonnect
service. You wil not have the opportunity to
pay a field representative at your door to
avoid disconnection. No notice wil be left for
you at the service location following
disconnection. Avista wil continue to send
notices and attempt to contact you by
telephone in advance whenever it intends to
disconnect service. It is very important that
you call Avista to make sure all your contact
information, including telephone number, is
correct. You may reach Avista at the number
below.
1-88-27-3403
ww.avistautilities.com
SEE REVERSE SIDE FOR
IMPORTANT INFORMATION
AVISF."
Utilities
The remote disconnect/reconnect device
installed on your meter wil allow Avista to
reconnect service more quickly. When the
reason for the disconnection (such as non-
payment of a past due bil) has been
remedied, you wil need to contact Avista to
request reconnection. Your service wil then
be reconnected immediately by means of
an electronic signal; you wil not need to
wait for a field representative to be sent to
your service location. If you have any
questions or experience problems at any
point in the reconnection process, please
contact Avista at the number below, 24
hours a day, 7 days a week.
Importnt:
If your service is shut-off, you wil be
required to pay the amount past due, a
deposit, and a reconnect fee.
A medical certificate notifying Avista of a
serious ilness or medical emergency
may delay termination.
We are willng to make mutually
satisfactory payment arrangements.
An informal or formal complaint concerning this
action may be filed with the Idaho Public Utilties
Commission - P.O. Box 83720, Boise, 1083720-
0074 (208) 33-0369 or toll free [phone].
1-888-427-3403
ww.avistautllties.com
SEE REVERSE SIDE FOR
IMPORTANT INFORMATION
~~~"""'SF."
Utilities
The remote disconnectreconnect device
installed on your meter wil allow Avista to
reconnec service more quickly. When the
reason for the disconnection (such as non-
payment of a past due bil) has been
remedied, you wil need to contact Avista to
request reconnection. Your service wil then
be reconnected immediately by means of
an electronic signal; you wil not need to
wait for a field representative to be sent to
your service location. If you have any
questions or experience problems at any
point in the reconnection process, please
contact Avista at the number below, 24
hours a day, 7 days a week.
Importnt:
If your service is shut-off, you wil be
required to pay the amount past due, a
deposit, and a reconnect fee.
A medical certificate notifying Avista of a
serious ilness or medical emergency
may delay termination.
We are wiling to make mutually
satisfactory payment arrangements.
An informal or formal complaint concerning this
action may be filed with the Idaho Public Utilities
Commission - P.O. Box 83720, Boise, 1083720-
0074 (208) 33-0369 or toll free [phone].
1-888-27-303
ww.avistautilities.com
SEE REVERSE SIDE FOR
IMPORTAN INFORMATION