Monthly Customer Statement Billing Customer Payments Late Fees & Administrative Fees Customer Care Outreach History and Application of Policy

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1 Monthly Customer Statement Billing Customer Payments Late Fees & Administrative Fees Customer Care utreach History and Application of Policy

2 Agenda Historical Time Line (Pre-2005) Historical Time-Line (2005 Current) Improvements Admin/Late Fee as % of Revenues Billing Zone #5 Example The logistics of Monthly Billing & Fees Billing Zone #3 Example (Multiple Months) Billing Statement Samples Policies for Eight Middle Georgia Counties Improvements in Customer Care during 2014 Recent Upgrades for Customer Care Touch Points Questions

3 Historical Time-Line 2 Months Late = No Late or Admin. Fee 7/04 Reconnect FEE = $ utstanding Amount Due: MAY BE UP T 3 MNTHS IN ARREARS 7/04 Authority Board Meets to discuss changes & approves recommendations 2004 Jun Jul Aug Sep August Finance Committee Meets to Review Existing Billing Policy 6/04 PRE-September / rd Month Billed = IF No Payment = Disconnect 7/ Billing Policy Challenges Created some inequities within a billing ZNE Customers at the beginning of the list disconnected first while those later in the list afforded more time to pay Reconnection fee of $25 added to the financial burden for some customers Field service was disconnecting services at the same time customers were paying bills which created additional customer frustrations as well as costs for the MWA Customers were in arrears multiple months before disconnect creating additional financial burdens

4 Late Fee Adjusted to be applied 20 days after billing date Historical Time-Line Finance Committee Recommends Discretion for Waiving a fee within 12 months Admin. Fee Reduced to $ / New Billing Policies Recommended to the Board Implemented Jan 1, /05 25 days after Billing Statement Date Late Fee Assessed ($3 or 10%) FEE REDUCDED T $15.00 FEB 2010 Customers subject to Disconnect after Admin. Fee Assessed 2391 days 2005 Billing Policy Change Desired utcomes Jan. 15th 2015 Today $25 Reconnect Fee Eliminated 5 Days after Late Fee, Admin. Fee of $20 Assessed (30 days after billing date) 2014 Customer would have a smaller carry-forward billing in the event that payment was late Large multi-month bills would be eliminated Customer would be able to re-reconnect with a smaller economic burden (N RECNNECT FEE)

5 Logistical Improvements Billing Zone 1 and Zone 2 combined into NE ZNE Provided some flexibility for customers on fixed income(s) R receiving pension checks, social security checks Professional discretion based on Customer Payment History to: Eliminate one (1) late fee and one (1) administrative fee every twelve (12) months Elimination of late fee and administrative fee if the MWA made a mistake or a policy was not correctly interpreted Placement of accounts on hold status for documented hardship cases/payment is delayed for short period of time

6 Logistical Improvements Leak adjustments issued for breaks that are documented and corrected Payment Plans offered for: Large bills due to documented & corrected leak Documented Financial Burden Customers are provided with names and numbers of help agencies that provide relief for utility bills Customers have been provided assistance with budgeting options and ways to eliminate both late fees and administrative fees Focused on Water Assistance Program

7 Historical Service Fees Administrative & Late Fees $1,700, % Admin Fee Reduced by $5.00 Total Dollars $1,600,000 $1,500, % 3.5% 4.0% 4.0% 3.5% $1,400, % $1,300, % 2.7% 2.8% 2.4% $1,200,000 $1,100, Actual 2009 Actual 2010 Actual 2011 Actual 2012 Actual 2013 Actual 2014 Actual 2.3% 2015 Budget 2.5% 2.0%

8 Billing ZNE Example Account is Subject to Disconnect 3 days Mar 11 - Mar 13 Zone Billing is Mailed 02/05/14 Payment DUE from Customer 02/25/14 Late FEE assessed if NT Paid ($3.00 or 10%) 03/03/14 Administrative FEE assessed if NT Paid ($15.00) 03/10/ Zone Billing is Generated (Billing Date is this date) 02/04/14

9 Billing Zone Logistics 51,000+ Customer Accounts are Billed in five (5) billing zones Days of Service Billed Expectations are days Target is thirty (30) days Billing Date = Statement Run Date Mailing Date = within one (1) business day Due Date = twenty (20) days from the Mailing Date Due dates are never on a weekend or recognized holiday Account is flagged as past due if payment is not received by the due date MWA sends alert reminders to customers signed up as a courtesy Launched credit card/checking account pay by phone option Feb 28, 2014 Late Fees = assessed five (5) days after due date Assessed by the system after 5:30PM Late fee dates never fall on a weekend or recognized holiday MWA will began sending campaign dialing reminders to customers with a phone number May 2014 Procedure in place to help avoid a conflict with another fee for a different zone Example: the Late Fee for the 2nd zone will not be applied on the same day as the Administrative fee for the 6th zone.

10 Billing Zone Logistics Administrative Fee Current policy states thirty (30) days from the day the bill is mailed. Admin. Fee is generated five (5) days after the Late Fee is applied. [late fees and admin. fees are NT generated on same day] Fee never falls on a weekend or recognized holiday Disconnection of Service Scheduled the business day after the Administrative Fee is applied Weather may delay the disconnect Volume and staffing levels may delay the disconnect N disconnects on Fridays, Saturdays or Sundays or the day before a recognized holiday

11 Billing Zone Logistics Disconnection of Service (con t) Disconnects are performed in route order Service Level Standard = approx. 30 a day/per field service rep. prior to noon Disconnect orders are cancelled automatically by the system if the customer pays before field tech disconnects Field tech. has the ability to notify a customer to contact the business office and make a payment Exception is a chronic delinquent customer that has a service request flagged Do Not Notify. Reconnection of Service A payment received from a customer for past due amount triggers an immediate Paid n service request ur general practice is that all non-payment disconnects that pay before 2:00 PM are reconnected same day Performed up until 7:30 PM Monday through Friday MWA DES NT charge a reconnect fee

12 EXAMPLE ZNE #3 Calendar Mail Zone 3 Day 1 5 Assess Late Fee on Zone #3 Past Due Customers Mail Zone #3 Next Month ACH Zone #3 Payments Bill Zone 3 Zone 3 Payments Due from Customers Assess Admin Fee of $15 for Unpaid Zone #3 Jan 28 - Jan 29 Bill Zone #3 Next Month READ Zone #3 2 days Feb 25 - Feb 26 Read Zone #3 2 days

13 THIS CUSTMER STATEMENT IS CURRENT 5 additional days 20 days

14 THIS CUSTMER STATEMENT IS PAST DUE

15 Data collected is as of April All information provided by surrounding counties via telephone study. Macon Water Authority Houston County, GA Jones County, GA Crawford County, GA Peach County, GA Bill Frequency Monthly Monthly Monthly Monthly, bills are received by the 5th of each month Monthly How many days until bills are due? 20 Calendar Days 15 days 15 days 15 days, bills are due on the 20th of each month Customers are generally allowed 31 days to pay their bill Late Payment Policy Payments received 5 days after the due date are assessed a late fee Payments made after the due date will include a penalty amount which will be equal to 10% of the bill. Payments made after the due date will include a penalty amount which will be equal to 10% of the bill. If bill is not paid by the due date, a late fee will be assessed and your account will be subject to disconnect. Late payment fee amount $3.00 or 10% of bill amount If payment is not received within 5 business days of the late fee being assessed the account is subject to immediate disconnect & Admin. Fee is charged To account. 10% of bill amount 10% of bill amount $5.00 or 10% whichever is greater is assessed on all bills not paid by the 20th of each month. In the event that the 20th falls on a weekend or holiday payment can be made through the next business day without penalty. Any account not paid by the 4th will be shut off on the 5th day of the month unless that day is a holiday or weekend, then shut-offs will be made on the next business day. Shut-offs can occur on Fridays. Late notices are NT sent out. $5.00 or 10% whichever is greater If payment is not received 7 days after the due date, water service will be disconnected. Service disconnected for nonpayment will be restored only after the bill is paid in full and a reconnection fee paid. Customer will be disconnected after 60 days of non-payment Any account not paid by the 4th will be shut off on the 5th day of the month unless that day is a holiday or weekend, then shut-offs will be made on the next business day. Shut-offs can occur on Fridays. No notices will be sent out. $0.00 During office hours $ After-hours fee is - $ $45.00 disconnect fee $25.00 Disconnect Policy Reconnect Fee $25.00 (residential) 10% of bill ($25 min fee) An After Hours Connection Fee of $50.00 will be charged if customer requests to be connected for any reason on weekdays between the hours of 5:00 PM - 9:00 PM or on weekends from 8:00 AM 9:00 PM. No connects will be conducted after 9:00 PM any day of the week. None, or $50 if customer requests to be connected on weekdays between the hours of 5:00 PM - 9:00 PM or on weekends from 8:00 AM 9:00 PM.

16 Data collected is as of April All information provided by surrounding counties via telephone study. Monroe County, GA Twiggs County, GA Baldwin County, GA City of Irwinton, GA Wilkinson County Bill Frequency Monthly 1st Friday of each month Monthly Monthly on 1st of each month How many days until bill are due? Bills are due 20 days after the billing date Bill is due within 30 days of bill date All bills are due on the 15th of each month Bills are due on the 10th of each month Late Payment Policy The customer is considered late if payment is not received by 21st business day after the billing date. Customers will receive a 15 day grace period after the due date. A late payment fee will be applied to the account if payment is not received by the due date. A 10% of bill amount penalty is added if payment is not received by the due date. Late payment fee amount 10% of the bill amount No late fees are incurred $ % of bill if not paid by the 10th. Any account not paid by the 21st of each month will incur a $40 secondary late fee whether disconnected or not. Disconnect Policy Any account not paid within 5 days of due date will be eligible for disconnection. Any account not paid within 15 days past the due date will be eligible for disconnection. Disconnections for non-payment on the 4th Wednesday of each month. A $50.00 service charge is added to any account that hits the cut-off list whether the service is disconnected or not. Account not paid by the 21st of each month will be eligible for disconnection. Reconnect Fee If a customer is disconnected for non-payment, a $35.00 reconnect fee will be charged. $25.00 reconnect fee is charged if customer is cut off for non-payment. $0.00 $0.00

17 Improvements in Customer Care during 2014 Auto payment by phone Customers now have the option to make bill payments 24/7/365 by phone using credit cards or checking accounts with no live MWA employee interaction IMPLEMENTED February 2014 Letters confirming customer s updated address Customers are now receiving automated responses as well as letters confirming addresses have been changed. A way of positive confirmation with the customer. IMPLEMENTED February Payment Responses Customers who have an on file with the MWA are now receiving an response for ALL payments made via: Mail nline Auto Pay by Phone MARS (Electronic payment via customers via bank) IMPLEMENTED March 2014 Changes to the IVR We have added a public relations option to include any community event that the MWA is currently involved in. We currently have the Kids fishing derby and Javors Lake Fishing hours recorded IMPLEMENTED March 2014 Auto response s to customers that utilize our online ur system is now sending automated responses to ALL inbound s from customers with a thank you for contacting the MWA and we will be in touch within 1 business day. Monitoring inbound s 24/7/365 IMPLEMENTED March 2014 Campaign Dialing Telephone generated outbound reminder calling to the customer with reminder messages for late payments. This will be initiated in an attempt to remind customers that bills are late and did you forget us type of message before the administrative fee and a disconnect work order is initiated. IMPLEMENTED May 2014 Mobile Application for Smart Phones Working on offering a mobile application for customers to download onto their smart phone that allows the customer pay their bills 24/7/365 from their phone Initiative

18 Benefits of Implementing RoboCall Reduced the number of disconnects due to non-payment. Reduced the number of late fee penalties. Reduced call center call volume. The chart below shows how many robocalls by zone were made to customers in nd 2014 June July August September ctober November December December 2073 N/A N/A 3rd N/A 4th N/A 5th th N/A N/A

19 Recent Upgrades for Customer Care Touch Points Customer Care Strategic Initiatives currently underway designed to continue to build momentum and keep the focus on exceeding customers expectations Promoting our Water Assistance Program to both the public and our own employees in order to help more people in need A customer survey that will be done on an annual or bi-annual basis to help guide us in meeting our customer s needs. n demand surveys for calls and online to solicit input and suggestions on how to better serve our customers. Continual training for customer service and field associates utilizing industry best practices; designed for continual improvement Acquiring a Customer Information System that will improve the customer experience A mobile application for customers with smartphones so that they have the information that will allow them to manage their account and make payments. Even text a payment.

20 Actions taken for Special Circumstances Weather related. Suspended disconnects Any accounts that had been turned off for non-payment just prior to a weather related issue was re-established until after that issue passed Added personnel to reconnect or disconnect for emergency issues Delayed Fees accruing to accounts Allowed additional leak adjustments caused by weather issues Extended payment plans for longer terms for unusual occurrences Removed additional fees when the MWA may have had some responsibility in the delay of immediate payment

21 Questions??