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A Spokesman Review reporter recently inquired about Modern Electric Water Company’s decision to opt out of the CCA $200 credit program. Below are the reporter’s questions along with Modern’s detailed responses.
Reporter's Question:
Why did Modern choose to opt out of the $200 CCA credit program?
Modern's Answer:
The state of Washington partnered with a third-party contractor that required access to all Modern’s customer data, even from those who don’t apply or qualify for the CCA credit. At Modern, we deeply value our customers’ trust in our efforts to protect their information. It is neither our desire nor our intent to share your customer data because doing so could put your privacy and financial security at risk.
Protecting our customers’ privacy is our top priority, and it is the primary reason we chose to opt out of this program. Your personal information belongs to you, and we’re dedicated to keeping it safe. We simply won’t share the data of thousands of our customers for the benefit of a few.
There are serious concerns about the credit program itself. It lacks safeguards to ensure the funds go to the low-income individuals who need them most. Without proper controls, there’s a risk that the program will be misused, potentially leaving those in genuine need without support while allowing unqualified applicants with higher incomes to fraudulently benefit.
We’re also concerned by the state’s mandate for participating utilities to blatantly promote the CCA program. Specifically, the state requires that utilities include a statement in all $200 credit-related communications that says, “The CCA supports Washington’s climate action efforts by putting cap-and-invest dollars to work reducing climate pollution, creating jobs, and improving public health.” While the state expects utilities to promote CCA just weeks before it appears on customers’ ballots, the program contract paradoxically warns utilities, “No funds may be used for working for or against ballot measures or for or against the candidacy of any person for public office.” In essence, the state is forcing utilities to promote the climate law and preventing them from offering customers balanced information about a policy that profoundly affects their everyday lives.
At Modern, our aim is to provide valuable information on energy and water issues while staying neutral on ballot initiatives and political candidates. We trust our customers to make informed decisions about government policies based on complete and balanced information.
Reporter's Question:
But what about providing assistance to customers who need it?
Modern's Answer:
Regarding assistance programs, Modern takes pride in our proven track record of making a meaningful impact in our community. Our efforts in economic development, job creation, community services, and charitable contributions significantly support our customers. However, none of these initiatives surpasses the extraordinary benefit we offer in providing some of the lowest residential electric rates in Washington and even across America.
We’ve worked hard to keep our rates affordable, benefiting all our customers, especially those who are low-income or facing high energy costs. For example, our residential rates start at 5.4 cents per kilowatt hour, compared to the state average of about 11.34 cents and the national average of 16.21 cents.
Our residential electric bills are one-third the national average and half the average rates in Washington State.
This considerable difference between our residential rates and those of the state’s large utilities amounts to $54 in savings each month for every resident in our service area. That monthly savings to every household – $648 in savings each year – is part of Modern’s effort to provide our customers with some much-needed relief from spiraling inflation, economic insecurity and the soaring cost of living in Washington.
To keep our customers' costs low, Modern operates with a lean team of just 30 employees, including our electric and water crews, engineers, customer service staff, IT specialists, and executive team. Given our lean staffing, carefully managed resources, and our focus on meeting our customers' power and water needs, we are not equipped to administer a state-run program. Doing so would necessitate hiring additional personnel and acquiring more costly resources, which could ultimately lead to higher expenses for our customers – potentially undercutting our commitment to protecting the very people we aim to serve.
Our customers’ best interests are at the heart of everything we do. Keeping electricity rates affordable is a key way we honor our commitment to them. We believe the numerous conditions tied to the CCA $200 credit program would undermine our obligation to serve our customers' best interests. Our commitment to transparency and loyalty to our customers is unwavering. No program could ever compel us to betray their trust.
Reporter's Question:
What about the concerns of customers who might have otherwise received this credit?
Modern's Answer:
We fully understand and appreciate the concerns raised by the two customers in a recent news article, and the perspectives of any other customers who feel they might have benefited from this grant program. Their concerns are valid and important to us.
We’re committed to providing balanced information about the CCA’s impact on our community, rather than leaving our customers at the mercy of incomplete or misleading information about our industry from various news media and partisan sources. Unfortunately, news media coverage of CCA's impact has been heavily skewed, and we believe it's crucial for Washington energy customers to have access to all the facts.
Nonetheless, our commitment to safeguarding customer data and privacy remains unwavering.
In addition to our strong focus on privacy, we are proud to offer some of the lowest rates in the state and maintain comprehensive senior assistance programs. Unlike the one-time $200 CCA credit, our programs provide ongoing support to our valued customers year after year. As we mark 120 years of service, Modern's promise to put our customers' best interests first is unshakable and stronger than ever.
Reporter's Question:
Does Modern share customer information with any third-party organizations?
Modern's Answer:
We do not share any customer information with third-party organizations (including our community partners) without customers’ written consent.
If the customer chooses to apply for a discount program through one of our community partners, the customer provides their own information to the organization. The third-party organization then conducts their own interviews, reviews documentation, and informs us if a customer qualifies for a bill credit.
In contrast, the state’s chosen contractor for this CCA credit program – which required the data of 100% of our customers as a condition of participation – is unfamiliar to us and other utilities in the industry. Modern has no established relationship with them, and there was no assurance that they would handle our customer data with the same level of care and protection that we are committed to providing.
Once again, under this arrangement, we would not only be providing customer information for those who qualify, but rather 100% of our customers. This is unacceptable to us.
We will not compromise our customers' privacy or financial security. Our commitment to safeguarding their information is unwavering, and we will continue to protect their data with the utmost diligence and integrity.
Reporter's Question:
Do you feel that Modern's articles provided balanced information?
Modern's Answer:
We provide as balanced information as the Spokesman Review.