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Credit coring A Help to Low Income Customers

Credit coring A Help to Low Income Customers. Presented by Larry Nowicki Manager, Regulatory Compliance Thursday, June 16, 2005. ABOUT NISOURCE. Fortune 500 holding company headquartered in Merrillville, Indiana.

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Credit coring A Help to Low Income Customers

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  1. Credit coringA Help to Low Income Customers Presented by Larry Nowicki Manager, Regulatory Compliance Thursday, June 16, 2005

  2. ABOUT NISOURCE • Fortune 500 holding company headquartered in Merrillville, Indiana. • 15 subsidiary companies engage in natural gas transmission, storage & distribution as well as electric generation, transmission & distribution. • Deliver energy to more than 3.7 million customers in high energy corridor stretching from the Gulf Coast through the Midwest to New England. • Over 16,000 miles of interstate transmission pipeline; 55,000 miles of distribution pipeline. • Over 9,000 employees. • Income from continuing operations of $430 million in 2004.

  3. ABOUT NISOURCE Northern Indiana Public Service Northern Indiana Fuel & Light Kokomo Gas • Customers Electric - 443,000 Gas – 776,000 Bay State Gas/Northern Utilities • Customers Mass. – 279,000 N.H. – 26,000 Maine – 24,000 Columbia Gas • Customers Ohio – 1,400,000 Pennsylvania – 401,000 Virginia – 209,000 Kentucky – 141,000 Maryland – 32,000

  4. Low-Income Customers • 70,038 Average number of low-income customers. • 357,006 Average All Residential Customers

  5. 2004 2000 2002 2003 Chapter 14 CAP Open Enrollment Pilot Program Credit Scoring Timeline

  6. JOE SCHMO 123-45-6789

  7. JOE SCHMO

  8. 123-45-6789 JOE SCHMO 222 W MAINRED LION 123-45-6789

  9. 123-45-6789 JOE SCHMO 222 W MAINRED LION 123-45-6789

  10. Application Process • First Contact with Customer • Screening • Early referrals to Universal Services

  11. Results

  12. Results • Verification • 11% of customers who were credit scored were low income

  13. Results Columbia Gas of Pennsylvania Inc.Credit Scoring Pilot Program ReportSummary of Period June 2001 Through October 2003

  14. Results • Waived deposits • Number of deposits X average deposit amount 5,381 X $162 = savings for low income customers

  15. Results • Number of deposits waived X average CAP Charge-off 5,381 X $762 = avoided costs to utility for charge-off

  16. Results • Other utility bottom line benefits • Cash working capital • Reduced collection costs due to early identification

  17. Results • Fewer complaints • 17 complaints over four years

  18. Results • Affordable benefits • CAP payment credit ($51) X number of waived CAP security deposits = total payment credit for CAP customers who were credit scored

  19. Benefits of Credit Scoring • Waived security deposits • Affordable payment plans • Energy assistance • Building good credit • Promotes goodwill with company

  20. Credit Scoring vs. Low Income Help Utility Benefit WIN/WIN

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