[Source: City of Pasadena]
The Pasadena Water and Power Department is facing a significant increase in late payments from residential, commercial, and industrial accounts in 2023. The department is set to report on the surge in a presentation about shut-off and late collections to the Municipal Services Committee on Tuesday.
The current arrearage amount for accounts overdue by 120+ days now stands at $8 million, a stark contrast from the typical pre-pandemic amount of under $100,000.
“In July 2023, total customer arrearage amounts with debt over 120 days climbed to $9.7 million,” according to memo from Sidney Jackson, General Manager of PWP. “Arrearage amounts have decreased to $8 million since resuming late fees and service interruptions for non-payment but remain far from the pre-pandemic average of less than $100,000. Given the current arrearage balances, reaching pre-pandemic arrearage averages could take a year or more.”
Non-payment service interruptions were resumed on Aug. 28 after being suspended due to the pandemic.
When PWP resumed late fees in June, the amount owed by customers with past due bills over 120 days had soared to $8.8 million.
Utility representatives have said that all collection efforts would be conducted in a “reasonable” and “compassionate” manner and are willing to waive late fees for some customers on a one-time basis.
During the pandemic, many PWP customers experienced financial difficulties due to job losses, income decreases, and local health emergency orders to close or reduce business operations. In response, the City Council authorized a refund of the past two years of Utility Underground Surtax collections totaling approximately $11.4 million and suspended the collection of this surtax for six months, totaling around $2 million.
When it was announced that shutoffs would resume, PWP General Manager Jackson said that low-income customers constitute only a small portion of the total arrearage.
It is not known how many accounts have been shut off due to non-payment.
“PWP staff continue to recommend bill assistance programs and payment arrangements,” according to a staff report in the agenda. “Enrollment in low-income bill assistance programs increased by 8% since July 2022. Referrals to the Maravilla Foundation, which provides federally funded low-income bill assistance for residential energy and water customers, have resulted in $315,110 in credits to qualifying customer accounts. Long-term payment plans are available to residential and commercial customers. Over 1,000 payment arrangement plans, totaling $1.4 million, have been created to date.”
The Municipal Services Committee will meet at 4:00 p.m. in Council Chambers at City Hall.
It may viewed via a live stream by clicking here or by watching www.pasadenamedia.org/