Want some extra holiday spending money?

Would you like a little extra spending money this holiday season?

As a way of encouraging more people to subscribe to the Utility Information Pipeline, I’m offering two $50.00 Visa gift cards, one to a new subscriber and one to a current subscriber who refers a new subscriber.

I will draw the winning entries on Friday, November 16 (in time to get the gift cards to the winners before Black Friday!) and will announce the winners in the November 20 Utility Information Pipeline.

New subscribers

If you subscribe between now and 11:59 pm on Thursday, November 15, you will automatically be entered in a drawing for one of the gift cards. If you are referred by someone, be sure to enter their name on the Referred By line of the subscription form.

Referrals

If you refer a new subscriber between now and 11:59 pm on Thursday, November 15, you will be entered once for each referral. For referrals from outside your organization, you will be entered twice for each new subscriber. Be sure to remind the people you refer to enter your name on the Referred By line when they complete the subscription form.

Days of exposure

If you missed the last issue, it included a link to a new Days of Exposure tool I’ve created. Days of Exposure is the total number of days of service a customer ends up owing for if they are cut off for non-payment and never reinstate service.

If you haven’t already done so, please take a minute and click here to calculate your utility’s Days of Exposure and determine if you are at risk for a potential bad debt write-off.

Webinar this morning

If you’re reading this first thing on Tuesday morning, you still have time to register for a webinar from the Environmental Finance Center at UNC this morning at 10:00 am EST. The webinar is entitled “Setting Financial Targets for Water Utilities – Beyond the Budget”. You can learn more about the webinar and register to attend by clicking here.

Do you have an idea for a future Utility Information Pipeline?

Do you have an idea for a future Utility Information Pipeline newsletter? If so, please give me a call at 919-232-2320 or e-mail me at gsanders@logicssolutions.com to let me know.

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© 2018 Gary Sanders

Calculate your days of exposure

If you’ve been a Utility Information Pipeline reader from the early days, you know I’ve written about days of exposure in one of the earliest issues and revisited itagain three years ago.

I feel like this is an important enough topic to not only write about it again, but to also create a tool so you can calculate your days of exposure. First, let’s review how days of exposure are calculated…

Components of days of exposure

Days of exposure is the total number of days of service a customer ends up owing for if they are cut off for non-payment and never reinstate service. It takes into account six specific time periods:

The sum of these six values results in days of exposure. Dividing days of exposure by the number of days in the billing period (days between meter readings) yields periods of exposure. Multiplying the periods of exposure by the average residential utility bill and then subtracting the security deposit arrives at the potential bad debt write-off (or deposit refund if the security deposit is adequate).

In my experience, taking steps to reduce days of exposure is an exercise that would benefit nearly all utilities, so I’ve developed an online tool to calculate days of exposure.

Calculate your days of exposure

If you’ve attended my Improving Revenue Collections for Utilities presentation at a utility conference, you’ve had the opportunity to complete a days of exposure worksheet. If not, or if you’ve forgotten what yours was, I’ve created an online, interactive days of exposure calculator.

You enter the number of days in each of the six stages, plus your average residential utility bill and residential security deposit, and the tool will calculate your days of exposure and potential bad debt write-off or deposit refund. To calculate your days of exposure, please click here.

Are you surprised by your days of exposure?

Are your days of exposure excessive or are you left with a potential bad debt write-off? If so, please give me a call at 919-232-2320 or e-mail me at gsanders@logicssolutions.com to learn how a business review could help evaluate how to improve your days of exposure.

Click here to subscribe to my free, bi-weekly email newsletter...

© 2018 Gary Sanders