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Ms. Cheap: New NES program rounds up bills to next dollar




Mary Hance

Mary Hance

I’m all for generosity and helping others when possible.

But I am a little miffed by the new Nashville Electric Service program that will automatically round up your monthly bill to the next dollar, starting Jan. 1, with the new funds earmarked for providing weatherization and energy-efficient upgrades for “limited income homeowners.”

It is not the rounding up to the next dollar that bothers me; it is the “automaticness” of the donation that gets me going.

To be clear, if you don’t want to contribute, you don’t have to, but you do have to go to the trouble to “opt out” to stop the automatic round-up action.

I just think it should be the other way around, that we would be invited to “opt in” instead of having to take an extra “opt out” step.

For years, NES has had its Project Help program, in which customers could contribute any amount on their monthly bill to help needy people pay their bills and avoid having their power cut off. That program collected $182,021 last fiscal year from 7,800 customers, which is a 1.8% participation rate across all NES customers, according to NES.

This new program will exist in addition to Project Help, and customers are encouraged to contribute to both.

“At the request of Metro Council, NES created an opt-out ‘round up’ program called the Power of Change, where 100% of funds collected will go directly into the Home Uplift program for immediate distribution toward home improvement costs for qualifying homes,” NES spokesperson Lisa Button said.

“The Home Uplift program provides energy-efficient upgrades for Middle Tennesseans as it helps qualified homeowners better afford other life necessities by lowering the cost of high electricity bills caused by outdated appliances and other home items,” she said.

NES said the way it works is that starting Jan. 1, “all NES bills (both residential and commercial customers) will be rounded up to the nearest dollar.”

Instead of inviting customers to help the needy like Project Help does, this new program pretty much assumes that customers will be willing to round up.

NES makes it clear that “No action is required to enroll in the program,” but customers should know that action is required if you don’t want to participate in the program.

I know it is not much money for customers to give — less than $12 a year, and most likely more like $5 or $6 a year, but it is the principle of it. Presumptuous is the word that comes to mind.

Button said, “Monthly contributions could be as little as one penny and never higher than 99 cents.

“We expect the average donation to be 50 cents per month, or $6 per year. While we cannot confirm an exact amount that will be collected, data from other U.S. utility opt-out donation programs typically have a 70% participation rate. If Nashville achieves that level, we anticipate approximately $1.7 million based on that $6 average a year contribution.”

The Home Uplift program that Power of Change funds is a partnership with the Tennessee Valley Authority.

“The type of improvements depend on each home’s needs, but the most common are insulation, duct sealing, water heaters and heat pumps,” Button said. She said all of the projects would be completed through TVA’s contractor network.

Button said NES has spent several months trying to get the word out to customers about the round-up program. She said notices were sent in bills, followed by emails, social media and a postcard campaign alerting customers of the round-up.

When asked about reaction from customers, she said it may be too early to tell since the program is just now launching.

I posted a little query about the program on my Ms. Cheap Facebook page, and responses have been mixed, at least among my Facebook friends.

“I personally think it’s a great idea. Less than a dollar a month to help those in need. A small price for a lot of benefit. If you can’t afford less than a dollar a month, you can opt out. And if that is your situation, you may one day benefit from this,” wrote Mary Dionne on Facebook.

“It should have been an option to opt in — not just take people’s money. It is not the amount … it’s the way they are going about it. The ones that agree it’s okay to just take it without agreement, would you be okay if it was $20 or every store and purchase you made was rounded to the amount they set, without your consent?” asked Jennifer Schmidt-McGarvey.

And Indie Pereira said, “I opted out on principle even though it is a small amount. Elderly people, those whose first language isn’t English and those without Internet access will be the most likely to not opt out and often the most in need for receiving rather than bankrolling help.”

Meade Columbia Jackson said, “I have been receiving notices for awhile so this should not be a surprise to anyone. Just opt out if you want. At most, it will be $11.88 a year donated. Realistically probably $5,” she said.

“When you round your payment up to the next whole dollar, 100% of your change is contributed to the Home Uplift program, providing weatherization and energy efficiency upgrades to homeowners who need it most,” NES said.

This is not about whether we should help our neighbors. I’m all for that, and I think I will let my “opt in” stand.

I just wanted you to know that if you want to opt out, you can do just that.

If you want to opt out, log into your NES account at NESPower.com or call (615) 736-6900 and follow the prompts.

For more info on the program, go to www.nespower.com/power-of-change/.

Mary Hance, who has four decades of journalism experience in the Nashville area, writes a weekly Ms. Cheap column. She also appears on Thursdays on “Talk of the Town” on NewsChannel 5. Reach her at mscheap@mainstreetmediatn.com and follow her on Facebook at Facebook.com/mscheap.

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