Case Study:

Assessing Compliance and Operational Excellence

Confidential Client | 2024

In an era marked by economic uncertainty and rising energy costs, utility companies face increased scrutiny over how they serve low-income and medically vulnerable customers. Atrium Economics was engaged by a large investor-owned electric utility on the East Coast to review and evaluate its current compliance with applicable laws, regulations, and tariffs.

Our expert analysis confirmed that the utility complied with all applicable laws, regulations, and tariffs. However, the circumstances that caused the review raised questions about the adequacy of customer communication, the renewal of medical certifications, and the boundaries of regulatory discretion.

At Atrium Economics, we help utilities identify and address areas of operational and regulatory exposure. We offer targeted consulting to reduce future exposure, improve customer engagement, and maintain compliance—especially during inflationary periods where affordability is top-of-mind for many households.

CHALLENGE

While utilities must adhere to tariff rules and disconnect procedures, these actions play a crucial role in maintaining fair and equitable service for all customers. Disconnection of services, though challenging, safeguards the integrity of the system and ensures that resources are allocated responsibly. Implementing these procedures properly for low-income and medically vulnerable customers helps reduce impacts to these customers while prioritizing the necessary support.

EXPERTISE

Our work involved thoroughly reviewing utility billing records, customer service communications, and applicable regulations and tariffs. We benchmarked the utility’s practices against national standards and other major providers, confirming their disconnection and reconnection processes were less aggressive than many of their peers. By adhering to stringent yet fair protocols, utilities demonstrate their commitment to balancing operational efficiency with customer care, ensuring that each household receives the attention it deserves while maintaining the overall safe operation of the utility system.

OUTCOME

Utilities can gain valuable insights from this review to minimize exposure and highlight the need for:

Effective medical certificate management and renewal processes

Integration of low-income assistance programs

Robust disconnection and reconnection procedures

Comprehensive risk mitigation strategies in customer communications

Continuous improvement and benchmarking

Training and development of staff

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