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May 19, 2010

AABE Annual Conference Energy Assistance Presented by David L. Johnson, Director Revenue Management and Protection. May 19, 2010. Current Economic Challenges. Official unemployment rate for Detroit is 25.3%, but estimates on real unemployment approach 50%!.

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May 19, 2010

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  1. AABE Annual ConferenceEnergy Assistance Presented by David L. Johnson, DirectorRevenue Management and Protection May 19, 2010

  2. Current Economic Challenges Official unemployment rate for Detroit is 25.3%, but estimates on real unemployment approach 50%! Source: Michigan Bureau of Labor and Statistics – March 2010

  3. Current Economic Challenges Michigan Foreclosure Filings % People Below Poverty Level 33% YTD Source: RealtyTrac.com – through March 2010 Source: US Census Bureau

  4. PRIVILEGED AND CONFIDENTIAL Current Economic Challenges As the number of Low-Income customers increases, State and Federal funding levels decline DHS statistics show DTE may have as many as 450,000 Low-Income customers in its service territory 450K* 425K* 356K* 280K 255K 236K $88M $119M $112M 198K $73M *Estimated based on DHS Statistics Allowing arrears to grow makes it very difficult for customers to restore service once disconnected

  5. Customer Payment Hierarchy Mortgage Car Payment Credit Cards Cable/Direct TV Cell Phones Utilities!!

  6. Evidence of Customers in Need is Apparent Everywhere

  7. Customers in Need

  8. DTE Energy Community Assistance DTE Energy Assistance to Customers in Need “Need Help?” • Community Organization Relationships

  9. Faith-Based and Community Initiatives Community Energy Solutions (CES) • Partnering with four local churches to provide on-site low-income energy assistance via experienced DTE Case Management staff • Increase to full staffing in CES Churches • Expanded hours for greater customer convenience • Add a church on the West Side of the state – Grand Rapids or Muskegon • Expanding CES-like services into the Detroit Recovery Project • Education and communications with Faith-Based and Community leaders • Host an Energy Assistance Resource Conference • Implement a quarterly Energy Assistance Newsletter • Partner with leaders to streamline energy assistance messages thru existing channels: church events, bulletins, etc. Second Ebenezer Church Pastor Dr. Edgar Vann Fellowship Chapel Rev. Wendell Anthony III New Galilee Baptist Church Rev. Horace Sheffield St. Cecilia’s Catholic Church Fr. Theodore Parker Detroit

  10. PRIVILEGED AND CONFIDENTIAL Customer Forums and Customer Assistance Day Event • Holding 35 Customer Forums in 2010 vs. 14 in 2009 • Provide on-site assistance to low-income customers • Assist customers filing HHCs and SER • Customer Assistance Day 2009 event provided over $500,000 in support to over 10,000 customers • Assembled over 25 Community Agencies • Hosting two Customer Assistance Day events in 2010

  11. Apartment Disconnect Communication Plan Move Tenants Out Arrears Collection Process Posting Day 5-10 Days Prior to Disconnect Corp. Comm. – Prepare media announcement Legal– Insure proper noticing; inform City of posting • Notify of Pending Disconnect: • Legal • Corp Communications • Regional Relations • Customer Service • Agencies • Legal Aide • Southwest Solutions • Visual documentation of posting • Apartment in Landlord name • Tenants pay utility as part of rent • Tenants primarily seniors and low-income Move Tenants Out Disconnect Day Legal – Notify appropriate entities of disconnect; coordinate last minute actions necessary UW211/DHS – Provide on-site support to tenants Corp Comm– Additional media support if needed Regional Relations– Notify appropriate legislative entities ECAC – Response Team Southwest Solutions – Provide housing solutions Sept. 11, 2009

  12. “Need Help?”

  13. For Internal DTE Energy Use Only Looking Ahead… • Developing new incentive-based payment plans tied to energy reduction to help customers reduce their utility burden – especially Slow Payers • Establishing a Case Management One-Stop-Shop to help low-income customers all the way through the energy assistance process • Working with state agencies to streamline access to assistance funding for customers • Modifying collection strategy based on more refined customer behavior segmentation • Enhancing customer office facilities and processes to reduce customer wait times and improve their overall experience • Partnered with social agencies to apply to participate in Low-Income Rate Pilot sponsored by the Michigan Public Service Commission

  14. For Internal DTE Energy Use Only What More Can We Do? • Energy AssistanceArrears • 2008 YE $74M$503M • 2009 YE $119M$436M • 2010 Target $112M $389M • While existing programs have proven successful, much more can be done to support the communities we serve • We must be even more attentive to our customers’ needs during these difficult economic times • We need to be more resourceful and innovative in developing new assistance programs

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