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What is the Smart Discount Program?
The Smart Discount program provides City of Portland sewer, stormwater, and water customers who are facing financial hardships an automatic reduction in their utility bill. This reduction is calculated by an algorithm that analyzes account information and publicly available information about ratepayers to determine who would benefit most from financial assistance. The program helps ensure customers maintain fair access to essential services.
When will the Smart Discount Program begin?
The Smart Discount program will have several phases before starting for most customers. The first phase will be an affordability evaluation period on a subset of our customers randomly selected for a discount starting in the fall of 2024. The results of this phase will be used to determine the feasibility of the program and add data to the ability-to-pay algorithm for the future. After the evaluation period, the goal is to roll out the Smart Discount to most single-family residential customers in the summer of 2025. If selected for the Smart Discount, you will receive notification prior to your first discounted bill.
How is eligibility for a discount determined?
An algorithm uses and analyzes utility account data (usage and payment history), income, household size, percent of median income, Census data, and other financial indicators to quickly determine discount eligibility and assign the appropriate discount percentage for eligible customers.
How do I apply for the Smart Discount Program?
There is no need to apply for the Smart Discount Program. If you are eligible, you will automatically receive a discount ranging from 5% to 80%.
If I’m not providing my income, how can the Portland Water Bureau determine my ability to pay?
Although knowing how much money our customers make is helpful, our ability-to-pay algorithm looks at a range of things such as how many people live in the home, the money they owe, income levels, employment status, and much more. This helps us get a better understanding of how much our customers can handle paying for their utilities.
How are accuracy and fairness checked in the program?
The Water Bureau and our partners will conduct regular reviews and audits of the algorithm to ensure accuracy and fairness. We are using many data analytics best practices to avoid potential bias, such as selecting relevant, reliable, and representative data sources, cleaning the data to remove missing values or outliers and to ensure consistency in the data, and a commitment to ethically and responsibly interpreting and sharing data results.
Will “middle- and upper-class” customers receive discounts under this program?
Customers who have been able to pay their regular utility bill will continue to do so. With the Smart Discount Program, our goal is to ensure that customers with large unpaid balances who are struggling to make payments can receive the help they need.
How often will the discount percentages be reviewed and updated?
We will review the discount percentages every six months to ensure they align with the program’s goals and adapt to changing circumstances.
Can businesses or multifamily residences participate in the Smart Discount Program?
The program is currently tailored to single-family residential customers, but we are exploring options for extending assistance to other customer categories. Stay tuned for updates.
Will my personal information be kept confidential?
The City prioritizes customer information privacy and security. The Smart Discount Program system does not use confidential information to determine eligibility. The system uses utility usage and account data, and publicly available Census information. If a customer provides confidential information such as income data, we will handle that information according to best practices for data privacy and protection to ensure confidentiality and compliance with regulations.
Is there a limit to the number of customers who can receive a discount?
No, there is no limit to the number of customers who can receive a discount. However, the algorithm will distribute discounts based on the funding the Water Bureau and the Bureau of Environmental Services set aside for the program.