April 21, 2015
2269
Despite opposition to its policy to disconnect hydro service year-round, Westario Power chief executive officer Lisa Milne maintains that this is a last resort after every avenue has been considered.
Milne and Randy Hughes, Kincardine's representative on the Westario Power board of directors, addressed Kincardine council at its meeting Wednesday night (April 15).
The company, formed in 2000, serves 24,000 customers in the urban areas from Southampton to Palmerston, including Kincardine, Saugeen Shores, Brockton, Hanover, Huron-Kinloss, Minto, North Huron and South Bruce.
Kincardine is the third largest shareholder in the company and has seen significant asset growth, as well as equity growth, over the past 15 years, said Milne.
She explained that the largest cost in an average residential bill of 2,000 kWh/month, is for the energy itself which Westario Power pays to the Independent Electricity System Operator (IESO), followed by retail costs, regulatory charges, Smart Meter charge, and finally, Westario's piece of the pie which is 14 per cent for distribution.
Milne said that 86 per cent of the bill is paid by Westario before it ever sends out an invoice to its customers. If the customer defaults, the company is responsible for 100 per cent of that cost except for the HST and the retail charge.
“We've done a poor job of communicating this to our customers,” said Milne. “It's a significant risk – what we collect versus what we keep.”
She stressed that Westario is in the business of distributing safe and reliable power to its customers. So, it is not in the company's interest to disconnect customers, except as a last resort, she said.
Typically, a customer is billed on the 9th of the month for the previous month's consumption, said Milne. The invoice is due 17 days after the bill issue date. If a bill is outstanding five days after the due date, a reminder notice is mailed. If a bill is outstanding for a minimum of 12 days, a notice of disconnection is issued.
She said customers have 10 days from the disconnection notice to contact the Westario office and make suitable payment arrangements – that is extended to 21 days for low-income-designated customers. If payment arrangements can't be made, the company contacts the customer and gives 48-hour notification of when the service will be disconnected.
“Disconnection of service is a last resort, and is only exercised when all other options have been exhausted,” said Milne.
In January of this year, 169 disconnection notices were issued, but only four services were disconnected, she said. There were 176 in February but because of the extreme weather, there were no disconnects. In March, there were 208 notices and 13 disconnects.
Milne emphasized that disconnection in January through March is based on failure to pay from two to three months prior. For example, a customer is billed in November for the consumption in October, and if he defaults, it would take until January to disconnect the service.
She said there are lots of options to assist customers with energy usage, such as equal billing, My HydroEye, and the services of an energy conservation officer.
“Communication is the key,” she said. “Contact Westario Power as soon as you are having difficulty with your invoice. Contact 211, the United Way or your local social services agency.”
She said the municipality might consider a Vital Services bylaw in which the municipality guarantees payment and gets its money back through the tax rolls.
“Westario Power has donated $150,000 to the United Way of Bruce Grey over the past 10 years, including $16,500 in January, 2015, to assist customers with their hydro bills,” she said. “Of that, $4,500 was through employee payroll deduction.”
On another note, Milne said Westario is currently upgrading the municipal substation on Princes Street, Kincardine, at a cost of $650,000. It is also replacing the No. 6 copper in seven locations throughout Kincardine at a cost of $770,000, and expanding the Kingsway four-KV express feeder line at a cost of $82,000.
“We have a significant capital investment of $1.5-million in the Kincardine community this year,” she said.
Councillor Maureen Couture asked if equal billing is available to commercial customers.
Milne said no, just for residential.
Couture suggested looking at allowing not-for-profit groups, such as the Kincardine Legion, the opportunity for equal billing.
Regarding the disconnections, councillor Laura Haight asked if other utilities have the same number as Westario.
Milne said it's not unique to Westario, having the ability to disconnect year-round. She said one utility she spoke with has 16,000 customers and averages 12 disconnections per month. “We have 24,000 customers and we average 15 per month.
“My concern continues to be having these disconnects in the winter – from January to March,” said mayor Anne Eadie. “If more could be done in that area, working with social services and with customers who fall between the cracks – that would be appreciated.”
“We understand the necessity of electricity in people's lives,” said Milne. “We consider the circumstances with every customer.”
Meanwhile, in Huron-Kinloss Monday night (April 20), council backed away from endorsing a resolution by the Municipality of Brockton which calls on Westario's board of directors to review and amend the disconnect policy so it is consistent with Hydro One. And that Westario not disconnect a resident's power from Dec. 1 to March 31, each year, to prevent serious harm or death as a result of power disconnection due to financial hardship.
Councillor Don Murray said he was concerned about the dates because customers could be in arrears before Dec. 1 and simply not pay because they won't be disconnected until March 31.
“If Hydro One has customers who default, it can just reach into the big pot of provincial reserve money and carry on,” said mayor Mitch Twolan. “Westario Power is disadvantaged by the expense of arrears.”
“It should be done on a case-by-case basis,” said councillor Lillian Abbott.
“The problem is, if there is a no-disconnect policy, you're looking at four to five months loss of money,” said Twolan. “Not all the truth is out there, on this issue. If people are abusing the system, then they should be disconnected.”
Township council approved a resolution to call on Westario's board of directors to review and amend the disconnect policy to prevent serious harm or death as a result of power disconnection due to financial hardship.
Written ByLiz Dadson is the founder and editor of the Kincardine Record and has been in the news business since 1986.
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