Energy Consumers Advisory Committee

IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee

IID Boardrooms 1285 Broadway Avenue, El Centro, CA 81-600 Avenue 58, La Quinta, CA Web Access: www.iid.com

SPECIAL MEETING AGENDA Monday, November 16, 2020, 6:00 PM

NOTICE: For accommodations for persons with disabilities, please call the ECAC Coordinator at (760) 898-1877. Notifications received 48 hours in advance of the meeting will enable reasonable accommodations be made.

Important Public Notice In response to the coronavirus (COVID-19) state of emergency and in accordance with Governor Newsom’s Executive Order N-33-20 (Stay at Home) issued on March 19, 2020, access to the Imperial Irrigation District boardrooms will be limited to members of the Energy Consumers Advisory Committee and the IID staff. Pursuant to Executive Order N-25-20, some or all of the members of the committee may attend this meeting telephonically.

Members of the public may watch or listen to the live audio or video stream of our meetings by visiting www.iid.com/livestream.

Members of the public who wish to submit a comment for the upcoming meeting can do so by email or telephonically:

. Email: Comments must be 250 words or less and be emailed to [email protected] by 5 p.m. on the day of the meeting. Please identify the item number in your email subject line.

. Telephone: Members of the public may provide comments telephonically during the meeting using the following number: (408) 418-9388, access code 146 169 6153. If you are providing comments telephonically, you will be placed on hold until the appropriate time. Please keep in mind there is a small time delay with the video stream and you must be on the telephone line at the time the item is addressed by the ECAC. There will be no subsequent opportunity to provide comments. Members of the public on the telephone who wish to address the ECAC must state their name for the record and limit their comment period as instructed by the Chair. As there may be more than one member of the public on the phone to address the ECAC, please exercise restraint and decorum so that everyone may have an opportunity to speak. For more information, please visit www.iid.com or contact: Rosa Maria Gonzales ▪ [email protected] ▪ O: 760.398.5812 ▪ M: 760.898.1877 A.CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL

B.PUBLIC COMMENT Statement of Procedures: This is a public meeting and the time for public comment. At this time, you may be heard on any item not listed on the agenda and within the subject matter jurisdiction of the committee. Any written public comment received will be read into the record at this time. Due to a small time delay of the video stream, if you are providing comments telephonically and wish to provide those comments at the time of the agenda item, you must be on the telephone line at the time the item is address by the ECAC and you will be placed on hold until the appropriate time. Any members of the public on the telephone who wish to address the board must state their name for the record. Comments are to be limited to three minutes.

C.CONSENT AGENDA

D.ACTION ITEMS

D.1. COVID-19 Utility Disconnect Moratorium - Pages 1-20 Recommend board approval. Deliquency COVID19 Impacts Week of Nov 5 2020- ECAC (final).pptx Reinstatement of DONP letter.docx

E.REPORTS AND INFORMATIONAL ITEMS

E.1. Governor’s Executive Order N-28-20 and Customer Disconnects - Pages 21-29 Informational item. 3.16.20-Executive-Order N-28-20.pdf Exec Director Letter to Energy Companies re COVID-19 March 17, 2020.pdf

F.ENERGY DEPARTMENT GENERAL MATTERS

G.MEMBER COMMENTS

H.NEXT MEETING: DECEMBER 14, 2020

I.ADJOURNMENT

For more information, please visit www.iid.com or contact: Rosa Maria Gonzales ▪ [email protected] ▪ O: 760.398.5812 ▪ M: 760.898.1877 Agenda Item No:D.1

Energy Consumers Advisory Committee Agenda Item Report Meeting Date: November 16, 2020 Submitted by: Rosa Maria Gonzales Presenter: Belen Valenzuela Submitting Department: Finance Department Item Type: Moratorium Agenda Section:

Subject: COVID-19 Utility Disconnect Moratorium

Suggested Action: Recommend board approval.

Attachments: Deliquency COVID19 Impacts Week of Nov 5 2020- ECAC (final).pptx

Reinstatement of DONP letter.docx

Staff Recommendation/Motion: Staff seeks a recommendation for board approval to immediately reinstate the filing of liens, initiate communications regarding disconnections of delinquent customer accounts and reinstate disconnections for nonpayment effective January 4, 2021.

Financial Analysis: Customer delinquencies make up more than $9 million of unpaid power bills. The debt will continue to increase each month, if disconnections are not reinstated.

Background: In March 2020, Imperial Irrigation District (IID) voluntarily suspended disconnections for residential and commercial customers in compliance with utility consumer protections during the COVID-19 outbreak.

IID has made every effort to assist customers during the pandemic by offering payment deferrals, payment plans and flexibility with security deposits, the Residential Energy Assistance Program, the Emergency Energy Assistance Program and the Medical Equipment Energy Usage Assistance Program, as well as other areas.

1 This page intentionally left blank. COVID-19 Utility Delinquency Update ECAC

Belen Valenzuela Chief Financial Officer November 16, 2020

www.iid.com

2 COVID-19 Response • On March 17, 2020, there was a temporary suspension of disconnect for non-payment • Customer notices, calls, emails and all other district communications updated . “Due to COVID-19, customer disconnects for non-payment are temporarily suspended.” • Payment deferrals and payment plans for residential/commercial accounts • Flexibility with security deposits for new accounts • Promotion of IID Payment Assistance programs • Promotion of federally funded Low-Income Home Energy Assistance Program (LIHEAP) administered by counties and non-profits • Average Bill Pay customers allowed to use credit to pay past due balances

www.iid.com 2 3 IID Debt History

November is at $9.3 million as of the first week of the month.

www.iid.com 3 4 Delinquency History

1.There are over 20,000 residential bills that are 31+ delinquent. 2. There are over 1,300 commercial bills that are 31+ delinquent. 3. Through the first week of November, IID has $9.3M in delinquent accounts.  Overall delinquencies continue to grow monthly to approximately $9.3 million www.iid.com 4 5 Accounts Ready for Disconnect Month No Of CA March 1,585 April 2,121 May 2,895 June 3,004 July 3,349 Aug 4,393 Sep 6,418 Oct 7,970 5-Nov 8,703

 There is a 498% increase in the number of accounts ready for disconnect since March of 2020

www.iid.com 5 6 2019-2020 Comparable Disconnect

DONP No. AUG Delinquency $ Accounts 2020 4393 $ 1,600,346 $4,295,480 2019 2171 $ 692,731 $3,739,019 DONP No. SEP Delinquency $ Accounts 2020 6418 $ 2,712,724 $2,712,724 2019 1952 $ 575,456

DONP No. OCT Delinquency $ Accounts $1,600,346 2020 7970 $ 3,856,253 2019 3635 $ 989,568 $767,737 $692,731 $575,456 DONP No. $445,907 NOV Delinquency $ Accounts 2020 8703 $ 4,295,480 2019 1456 $ 445,907 2020 2019 Sept 2020 2019 Oct 2020 2019 Nov 2020 2019

Imperial Valley 46% Coachella Valley 54% Indio and Calexico have the highest delinquency www.iid.com

7 SAMPLE OF RESIDENTIAL ACCOUNT -DISCONNECT LIST

91 or More 31 to 60 Day 61 to 90 Day Total Day Area Delinquencies Delinquencies Delinquencies Delinquencies Customer Type RESIDENTIAL CUSTOMER$ 2,332.52 -$ $ 5,122.82 $ 7,455.34 LaQuinta RESIDENTIAL CUSTOMER 1,242.31 1,381.59 3,706.75 6,330.65 Imperial RESIDENTIAL CUSTOMER 1,098.17 1,023.03 3,361.52 5,482.72 LaQuinta RESIDENTIAL CUSTOMER 314.00 - 5,034.77 5,348.77 LaQuinta RESIDENTIAL CUSTOMER 1,046.41 1,627.74 2,377.28 5,051.43 LaQuinta RESIDENTIAL CUSTOMER 1,749.82 1,779.26 1,396.36 4,925.44 Imperial RESIDENTIAL CUSTOMER 264.17 279.40 4,078.72 4,622.29 Imperial RESIDENTIAL CUSTOMER 910.78 1,237.20 2,342.14 4,490.12 Imperial RESIDENTIAL CUSTOMER 513.18 592.25 3,349.14 4,454.57 LaQuinta RESIDENTIAL CUSTOMER 588.97 712.22 2,847.90 4,149.09 Imperial RESIDENTIAL CUSTOMER 776.24 747.47 2,248.43 3,772.14 Imperial RESIDENTIAL CUSTOMER 793.02 738.88 2,132.29 3,664.19 LaQuinta RESIDENTIAL CUSTOMER 810.38 795.96 1,946.82 3,553.16 LaQuinta RESIDENTIAL CUSTOMER - - 3,530.86 3,530.86 LaQuinta RESIDENTIAL CUSTOMER 980.92 841.81 1,700.57 3,523.30 LaQuinta

www.iid.com 7 8 SAMPLE OF COMMERCIAL ACCOUNT -DISCONNECT LIST

Same Customer 31 to 60 Day 61 to 90 Day 91 or More Day Total Area Several Delinquencies Delinquencies Delinquencies Delinquencies Type of Business Accounts COUNTRY CLUB $ 48.65 $ 24.76 $ 213.59 $ 287.00 Imperial$ 57,943.68 SOLE PROPRIETOR 934.27 863.13 716.27 2,513.67 Laquinta 8,447.55 ICE CREAM 361.12 359.05 1,248.36 1,968.53 Imperial 9,365.90 PRODUCE 1,406.46 1,261.51 1,317.01 3,984.98 Imperial 8,290.34 WIRELESS COMPANY 210.28 197.20 331.43 738.91 Imperial 1,562.42 CLOTHING STORE 426.11 382.14 2,592.07 3,400.32 Imperial 6,827.61 ENERGY EFFICIENCY CONTRACTOR 38.04 38.05 277.50 353.59 Imperial 796.18 TRUCKING COMPANY 1,078.77 838.56 2,827.42 4,744.75 Laquinta 42,751.39 BREWING COMPANY LLC 17.28 24.38 257.72 299.38 Imperial 5,596.54 PHARMACY 710.42 608.58 1,481.91 2,800.91 Laquinta 6,858.35 PRODUCE COOLER 4,632.11 - 9,501.43 14,133.54 Imperial 63,580.09 GOLF CLUB 47.76 - 23.92 71.68 Laquinta 22,291.07 PRODUCE 338.81 313.05 222.31 874.17 Imperial 5,066.81 CANIBUS DISTRIBUTOR 91.49 91.57 550.53 733.59 Imperial 7,766.34 DRY CLEANING 118.59 116.24 - 234.83 Imperial 2,325.00

www.iid.com 8 9 Customer Outreach

• GM letter to customers on IID COVID-19 response actions • COVID-19 messages in monthly Circuit newsletters • Radio • KXO AM & FM • KMXX-FM • KSEH-FM, KUNA • Marker Broadcasting • Alpha Media (8 stations) • Cable and Streaming Television • NPG Yuma: Fox 9, ABC 5 • KSWT/KYMA: CBS 13, NBC 11 • KESQ: News channel 3 • KMIR: NBC 6 • Spectrum Reach - cable and streaming

www.iid.com 9 10 Customer Service Actions • All customer communications focused message on encouraging payment plan enrollment • Promotion of low-income assistance programs administered by the district and by partner organizations • Coordination with counties, cities, school districts, nonprofit organizations and other partners to augment customer communications (promoting and communicating LIHEAP) • IVR (automated phone system) modified for partial payments • Customer web portal and mobile app modified for partial payments • Approval of transfer $2 million from Public Benefits programs to Payment Assistance programs

www.iid.com 10 11 Customer Outreach

• Customer Service Representatives at call center and pay stations provide all available resources and programs to assist with past due bills • Outbound customer calls to promote payment assistance programs and payment plans • Outbound customers calls for those on DONP list

www.iid.com 11 12 Customer Assistance Program Comparison

Low Income Participation

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 REAP Average Participation EEAP Total PLEDGES MEEUAP Average Participation

2019 2020

 Increase in income assistance programs not as high as expected: EEAP increase of 14% REAP increase of 6% MEEUAPs increase of 21% www.iid.com

13 LIHEAP Low Income Housing Energy Assistance Program

2019 2020

Quarter #Referrals Pledge Value $ Quarter #Referrals Pledge Value $ 1Q2019 429 $156,782 1Q2020 406 $167,471 2Q2019 258 $88,577 2Q2020 203 $69,081 3Q2019 654 $229,541 3Q2020 250 $97,797 October 343 $131,091 October 209 $96,103 Totals 1,684 $605,991 Totals 1,068 $430,452

 Not seeing the usage of funds as expected. LIHEAP pledges are 37% lower than last year

www.iid.com

14 Bankruptcies

Yearly Comparison on Bankruptcy Debt under bankruptcy 140 filings Residential $ 5,432.00 120

Commercial $ 203,235.00 100

Total $ 208,667.00 80

60 Year No of bankruptcies 40 2017 66 2018 40 20 2019 42 0 2017 2018 2019 2020 2020 116

 Bankruptcies continue to increase by 176%  CBL & Associates filed bankruptcy on November 2, 2020. Total estimated debt under CBL & Assoc. bankruptcy is $119,105 covering 7 accounts  TTBGM, Inc. seven accounts converted from bankruptcy chapter 11 to chapter 7

www.iid.com

15 Financial Impact • Cash flow negatively impacted . Customer delinquencies make up approximately $9 million of unpaid power bills . 498% increase of customers on the disconnect list compared to same time last year . 176% increase in customer bankruptcies compared to same time last year

www.iid.com 15 16 Operational Impact Resulting in Abuse

 Accounts with deceased customers or new occupants not updating accounts  Possible squatters on accounts. Vacant premises being adopted by unknown tenants  Real Estate changes on accounts not being reported For billing and collections purposes accounts with meter running, no business partner situations where the district does not have an identified customer to take ownership of the electric account and the associated financial obligation. Failure to complete application and consume energy on an account where customer is deceased and or vacated premise falls under fraud.  Customers under Net Metering accounts are not paying at settlement month  Customers under budget billing accounts are not paying at settlement month

www.iid.com 16 17 Proposal to Suspend DONP Moratorium • Reinstate DONP process effective January 4, 2021  Life support and MEEUAP will not be disconnected for non payment  Nov 2020 - Send out communication that “IID will be reinstating DONP process so please bring account current or call to make payment arrangements” via notices  Dec 2020 - Send out customer specific DONP messages, dunning notices and emails  Jan 4, 2021 - Commence DONP • It will take an average of 4-5 months to complete DONP list • Effective immediately  Reinstate filing of liens effective immediately ~ seeing an increase in real estate sales  DONP locations with fraud, squatters, and lack of application (deceased) • Failure to complete application and consume energy on an account where customer is deceased and or vacated premise falls under fraud

www.iid.com 17 18 Timeline for DONP

www.iid.com 18 19 November XX, 2020

Subject: Notice to Reinstate Electric Service Disconnections

Dear IID customer:

In response to the COVID-19 pandemic, since March 17, 2020, Imperial Irrigation District temporarily suspended all electric service disconnections due to non-payment for residential and commercial customers.

At this time, IID is experiencing heavy financial impacts resulting from the pandemic and will resume normal business procedures effective January 4, 2021. Customers who are in a disconnect status for non-payment and have not made payment arrangements will have their electric service disconnected after this date.

IID understands the pandemic is creating financial hardship for many and urges all customers who are in a disconnect status or have past due balances to contact IID and initiate a payment plan as soon as possible. Customers may also qualify for IID’s payment assistance programs as well as federal and state relief funds available through partner agencies.

Please contact IID’s customer service staff today at 1-800-303-7756 to discuss your options and make necessary arrangements.

# # #

20 This page intentionally left blank. Agenda Item No:E.1

Energy Consumers Advisory Committee Agenda Item Report Meeting Date: November 16, 2020 Submitted by: Rosa Maria Gonzales Presenter: Sabrina Barber Submitting Department: Energy Department Item Type: Executive Order Agenda Section:

Subject: Governor’s Executive Order N-28-20 and Customer Disconnects

Suggested Action: Informational item.

Attachments: 3.16.20-Executive-Order N-28-20.pdf

Exec Director Letter to Energy Companies re COVID-19 March 17, 2020.pdf

Staff Recommendation/Motion: Informational item.

Financial Analysis: None.

Background: On March 4, 2020, Governor Newsom declared a State of Emergency in California related to COVID-19. In the absence of legislative activity, the Governor issued a variety of executive orders on a wide range of issues, such as a statewide stay-at-home order, a mask mandate, an evictions moratorium, tax deadline extensions, workers’ compensation, utility disconnections and more. Newsom announced many of these orders at daily press conferences, where he outlined the latest COVID-19 statistics and the steps his Administration was taking to protect the public.

Among his many executive orders, on March 16, 2020, Governor Gavin Newsom issued Executive Order N-28-20, which directed the California Public Utilities Commission to “monitor measures undertaken by public and private utility providers to implement customer service protections for critical utilities, including electric, gas, water, internet, landline, telephone, and cell phone service on a weekly basis.” IID staff worked with the CPUC to provide information on IID’s customer disconnection policies. The executive order did not mandate prescriptive disconnection policies.

Due to the COVID-19 pandemic, the CPUC adopted D. 19-07-015 and D. 19-08-025, which ordered the state’s investor owned utilities (IOUs) and other regulated water and electric utilities to comply with, through at least April 16, 2021, a wide-ranging list of actions designed to assist impacted customers. The list of a dozen actions includes suspending shutoffs, waving deposit requirements for residential customers, suspending all CARE and FERA program removals, and others. This order does not apply to publicly owned utilities.

21 Attached is a copy of Executive Order N-28-20 and a letter from the CPUC to the regulated entities aforementioned.

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