WM Utility looking for ways to curb write-offs, improve customer service

WM Utility looking for ways to curb write-offs, improve customer service

Bill pre- pay, better collection process on the table for commissioners

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After dismissing a total of $800,000 in uncollected bills from 2014 during business this year, West Memphis Utilities Commissioners wanted to stem the flow. Commissioner Susan Marshall wanted to know what could be done to drive the bad debt down.

Debt write-off levels are dropping according to Assistant Utilities Manager Todd Pedersen. Reduction efforts in recent years included revisiting the collection process. The latest change included creating a position dedicated solely to shutoffs.

“That person does nothing but disconnects four days a week,” said Pedersen.

Disconnecting service at the proper time actually cuts the amount of unpaid bills and keeps the bad debt from mounting up at the Utilities.

“We’ve seen a great reduction already,” said Pedersen.

“We’ve talked about prepay in the past, where are we,” asked Marshall.

The new online bill paying service could also allow for pre-paid accounts at some point, further reducing potential bad debt.

“The pre-pay option is like getting gas for your vehicle,” said Pedersen. “You pay for it and when it runs out your vehicle doesn’t go anymore.”

Pre-paid utilities services were also compared to widely accepted cell phone plans.

It’s an all new idea and would require changes. An investment as large as three million dollars for automated meters would be required to implement pre-paid services. Policies for deposits and company procedures would have to be updated in order for the Utilities to stay in step with available advanced metering infrastructure (AMI) technology.

Pedersen indicated the whole thing is in the early stages of analysis and too early for immediate plans.

“We’ve hired a consulting engineer firm,” said Pedersen. “They had an initial meeting two weeks ago.

We will need a joint meeting with the Commission and City Council, maybe in February, and them showing their cost benefit analysis of going to AMI. When you go to AMI and put in the proper metering equipment then you will be able to have pre-pay.”

It all comes at a hefty price tag which is why commissioners and City Council and administration would all have to be behind the new service.

“The key is to look at the cost-benefit analysis to see what you’d have to spend,” said Pedersen. “You have to change every water meter and electric meter in the city. You’re looking at a three million dollar capital expenditure. The City Council needs to look into this because there is going to be policy changes.”

Even as prepaid is only being eyed as a way to reduce

overdue bills, shutoffs

and even write-offs, the Utilities budgeted for reduced write-offs in 2017.

Commissioners recommended the company budget to the city setting uncollected debt at less than the write off the Utilities endured this year. The new goal is $375,000.

By John Rech