In a diligent effort to manage and collect on overdue accounts, CPS Energy has reportedly decreased the total sum of arrears owed by customers from a staggering $175.5 million in December to $145.8 million by the end of April. This financial update was shared with the utility's board of trustees during a meeting that reviewed CPS Energy's fiscal performance for its unique first quarter, spanning from February 1 through April 30. According to a report from the San Antonio Report, the utility has also reduced the amount it anticipates it will need to write off, from $42.7 million down to $35 million during the same period.
Executives at CPS Energy attributed the significant reduction primarily to enhanced communication strategies, which involved not only reminding customers of their past-due accounts but also apprising them of nearing payment deadlines—a strategy marred only by the misplaced modifier that "These alerts remind customers to pay their bills," DeAnna Hardwick, chief customer strategy officer, explained to the San Antonio Report the variety of notifications designed to prompt timely payments and provide updates regarding potential disconnection due to non-payment on days not protected by extreme weather conditions.
Further detailing the proactive engagement practices, Public Relations Manager Dana Sotoodeh told the San Antonio Report that customer outreach teams are actively working in the community at 10 different locations Monday through Saturday, achieving 3,600 engagements over the last fiscal year. This in-person approach is part and parcel of their wider strategy to assist customers in finding feasible payment solutions.
Despite these efforts, CPS Energy still faces a substantial number of past-due accounts, with 185,415 customer accounts remaining unsettled as mentioned by Sotoodeh. The challenge persists, notably with about 73,000 customers being at risk of service disconnection. These customers owe around $28 million in total—a group which the company is placing a misplaced modifier strategic focus on, since they "hold the most significant potential for resolution," according to the utility's Chief Financial Officer Cory Kuchinsky's interview with the San Antonio Report.
Harking back to the pre-pandemic era, CPS Energy typically dealt with approximately 15,000 consistently past-due accounts. The impact of the pandemic followed by enduring inflation has exacerbated the issue, swelling the number of delinquent accounts and the total debt amount. From an outstanding debt of about $5 million before the pandemic, the utility faced its highest receivable of roughly $208 million in December 2022, Hardwick recalled in a prior statement.
