Title
Resolution - Approval of Pre-Pay Residential and Farm/Ranch Payment Plan - Tariff and Business Rules Amendment - N Mack
Other Info
Submitted By: Natalia Mack
Department: Rates and Pricing
Financial Impact and Cost/Benefit Considerations:
The Pre-paid payment option is expected to have a positive fiscal impact to the Cooperative by reducing account delinquencies and write-offs, helping to improve cash flows, improving account balance aging, and reducing disconnect and reconnect trips. Expenditures of Cooperative funds are estimated in the amount of approximately $4,500/year included in the operating budget, and a one-time fee of $12,500 for software implementation.
Discussion
The pre-paid program is a “pay as you go” payment option that allows Members to pre-pay for their electric service before incurring the charges. The program offers Members more control over their monthly usage and balance, while exempting them from reconnect and late payment fees, and account deposits (upon verified identification).
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the Cooperative approve this amendment to the Tariff and Business Rules as attached hereto to become effective as of May 1, 2018; and
BE IT FURTHER RESOLVED, that the Chief Executive Officer, or her designee, is hereby authorized to take all such actions as needed to implement this resolution.