EWEB Claims “101”EWEB Claims “101”(Eugene Water & Electric Board)(Eugene Water & Electric Board)

APPA Business & Financial ConferenceAPPA Business & Financial ConferenceSeptember 19September 19thth, 2006, 2006Damage Claims & Service GuaranteesDamage Claims & Service Guarantees

By Tammy Den OudenBy Tammy Den Ouden

Management AssistantManagement Assistant

Customer & Financial ServicesCustomer & Financial Services

Claims

EWEB Policies & Procedures

A Few Eugene FactsA Few Eugene Facts

• Population 146,000Population 146,000• University Town – 22,000 students University Town – 22,000 students

“revolve” yearly“revolve” yearly• 33rdrd Largest City in Oregon Largest City in Oregon

                                                                                                                  

A Few EWEB FactsA Few EWEB Facts

• 472 Full Time Equivalent employees472 Full Time Equivalent employees• Provide electricity to a 238 square mile Provide electricity to a 238 square mile

areaarea• 84,000 Electric customers84,000 Electric customers• 48,000 Water customers48,000 Water customers• 100 Steam customers100 Steam customers• EWEB is chartered through the City of EWEB is chartered through the City of

EugeneEugene

            

Claims in the EWEB Claims in the EWEB OrganizationOrganization

Board of Directors

GM

Assistant to

GM

Electric Services

Water&

Steam

Customer &

Financial Services

CorporateServices

Claims Falls Under Here

            

EWEB Definition of EWEB Definition of “Damage” Claims“Damage” Claims

• When EWEB property is damaged When EWEB property is damaged by anyone for any reason, this is by anyone for any reason, this is considered a “Recovery Claim.”considered a “Recovery Claim.”

• When EWEB damages any property When EWEB damages any property for any reason, this is considered a for any reason, this is considered a “Liability Claim.”“Liability Claim.”

EWEB InsuranceEWEB Insurance

• EWEB is Self Insured up to $1milEWEB is Self Insured up to $1mil

EWEB Headquarters

Oregon Revised Statute 30Oregon Revised Statute 30

• EWEB follows the Oregon Tort EWEB follows the Oregon Tort claims act by requiring written claims act by requiring written notice from anyone who files a notice from anyone who files a claim for damagesclaim for damages

• Cap for damagesCap for damages

Claims TrackingClaims Tracking

• Exclusive EWEB Claims Data-base Exclusive EWEB Claims Data-base ((See light blue handoutSee light blue handout))

• Log all information Log all information • All claims information filters to me All claims information filters to me • Document, Document, DocumentDocument, Document, Document• Claims Adjuster/InvestigatorClaims Adjuster/Investigator

2004 Claims Statistics2004 Claims Statistics

• 244 244 LiabilityLiability Claims Claims• Paid $59,000Paid $59,000

• 7474 RecoveryRecovery Claims Claims• Recovered $142,000Recovered $142,000

2005 Claims Statistics 2005 Claims Statistics

• 267 267 LiabilityLiability claims claims• Paid $47,000Paid $47,000

• 103 103 RecoveryRecovery claims claims• Recovered $172,000Recovered $172,000

Prize Opportunity!!!Prize Opportunity!!!

• What is the mascot for the What is the mascot for the University of Oregon? University of Oregon?

Electric PolicyElectric Policy

• Interruptions, Curtailments, Fluctuations, Interruptions, Curtailments, Fluctuations, Shortages, and Outages (Shortages, and Outages (see tan see tan handouthandout).).

• This policy is heavily relied upon to help This policy is heavily relied upon to help guide our decision making when dealing guide our decision making when dealing with customers who have claims against with customers who have claims against EWEB. It is referred to in all denial EWEB. It is referred to in all denial letters. letters.

3 Common Liability Claims3 Common Liability Claims

• I experienced a Power Outage and my I experienced a Power Outage and my TV, VCR, and Computer no longer work, TV, VCR, and Computer no longer work, and my food has spoiled. and my food has spoiled.

• I have had power fluctuations in my I have had power fluctuations in my home and now my major appliances home and now my major appliances seem to be damaged. Your line person seem to be damaged. Your line person told me it was a “neutral problem.”told me it was a “neutral problem.”

• EWEB “dug-in” to our service, we EWEB “dug-in” to our service, we incurred costs and we would like to be incurred costs and we would like to be reimbursed.reimbursed.

Power OutagePower Outage

• In most cases, if we have a customer In most cases, if we have a customer that has damaged appliances (TV, VCR, that has damaged appliances (TV, VCR, Computer etc.) or spoiled food issues as Computer etc.) or spoiled food issues as a result of a power outage, we deny the a result of a power outage, we deny the claim and refer to our policy (claim and refer to our policy (see tan see tan and and purplepurple handout handout))

““Neutral” IssuesNeutral” Issues

• Neutral issues often come with major Neutral issues often come with major appliances being damaged appliances being damaged (stoves,refrigerators etc.) which increases the (stoves,refrigerators etc.) which increases the amount of the claim (sometimes substantially). amount of the claim (sometimes substantially). While we still refer to our policy, we do make While we still refer to our policy, we do make exceptions, and occasionally negotiate with the exceptions, and occasionally negotiate with the customer. EWEB recognizes that a neutral customer. EWEB recognizes that a neutral issue is not something a customer can issue is not something a customer can necessarily prevent (necessarily prevent (see greensee green for example). for example).

EWEB “Dig-In”EWEB “Dig-In”

• In most cases, if EWEB caused the In most cases, if EWEB caused the damage, EWEB will pay for the damagedamage, EWEB will pay for the damage

• The organization sending the bill should The organization sending the bill should provide documentation to EWEB proving provide documentation to EWEB proving that EWEB created the damage. This is that EWEB created the damage. This is necessary, as we don’t always have the necessary, as we don’t always have the documentation with the information or documentation with the information or we have not heard about itwe have not heard about it

EWEB Release of All claimsEWEB Release of All claims

• If EWEB makes any kind of a payment If EWEB makes any kind of a payment for a liability claim, an offer letter with a for a liability claim, an offer letter with a release is sent.release is sent.

• No payment will be made until the No payment will be made until the Release is signed first. Release is signed first.

• See white handout for example of See white handout for example of ReleaseRelease

3 Common 3 Common RecoveryRecovery Claims Claims

•Contractor “Dig-In” to EWEB Contractor “Dig-In” to EWEB Service.Service.

•Car to PoleCar to Pole•Tree fell on EWEB ServiceTree fell on EWEB Service

Contractor “Dig-In”Contractor “Dig-In”

• Call to Claims Adjuster Call to Claims Adjuster • Call to ClaimsCall to Claims• Incident and Investigation report sent to Incident and Investigation report sent to

ClaimsClaims• Billable sent to ClaimsBillable sent to Claims• Claims bills the Person who did the dig in or Claims bills the Person who did the dig in or

Insurance etc.(Insurance etc.(see lavender handout)see lavender handout) • Unless obvious “Locate” problem, Unless obvious “Locate” problem,

contractor can subrogate to Locate contractor can subrogate to Locate companycompany

Car to PoleCar to Pole

• Call to Claims Adjuster Call to Claims Adjuster • Call to ClaimsCall to Claims• Incident and Investigation report sent to Incident and Investigation report sent to

ClaimsClaims• Billable sent to Claims with police info, if Billable sent to Claims with police info, if

anyany• Claims bill Insurance, if any. If no Claims bill Insurance, if any. If no

insurance, bill customer directly. insurance, bill customer directly.

Tree Fell on EWEB ServiceTree Fell on EWEB Service

• Call to Claims Adjuster Call to Claims Adjuster • Call to ClaimsCall to Claims• Incident and Investigation report sent to Incident and Investigation report sent to

Claims (Claims (see yellow handoutsee yellow handout))• Billable sent to Claims with police info, if anyBillable sent to Claims with police info, if any• Claims bill Person who Fell Tree directly (if Claims bill Person who Fell Tree directly (if

they want be to bill insurance, I will) they want be to bill insurance, I will) • Tree Fell means someone cut down or Tree Fell means someone cut down or

trimmed tree and it “fell” into EWEB Service.trimmed tree and it “fell” into EWEB Service.

EWEB Billables includeEWEB Billables include

• LaborLabor• OvertimeOvertime• Operations Overhead Operations Overhead • Administrative OverheadAdministrative Overhead• Flagging feesFlagging fees• MaterialsMaterials• Equipment ChargesEquipment Charges• Misc feesMisc fees• See red handoutsSee red handouts for definitions and example for definitions and example

of billableof billable

Car Accidents (EWEB Car Accidents (EWEB Vehicle/Employee involved)Vehicle/Employee involved)

• Biggest LiabilityBiggest Liability• EWEB Employee fill out Yellow Auto EWEB Employee fill out Yellow Auto

Accident Report (in every vehicle-Accident Report (in every vehicle-see see small yellow handoutsmall yellow handout))

• EWEB Claims Adjuster usually called for EWEB Claims Adjuster usually called for investigationinvestigation

• Adhere to EWEB’s Driving policy(Adhere to EWEB’s Driving policy(see see bright pink handoutbright pink handout))

• Waiver of Liability (Waiver of Liability (white or pink white or pink handout back of driver policyhandout back of driver policy))

Car Accident BillableCar Accident Billable

• If it is determined that EWEB is at fault, If it is determined that EWEB is at fault, we will pay the customer(s) and proceed we will pay the customer(s) and proceed according to lawaccording to law

• If it is determined the other party is at If it is determined the other party is at fault, We will send the bill to their fault, We will send the bill to their insurance company. If no insurance insurance company. If no insurance exists, we will bill them directly exists, we will bill them directly

Important Claims Factors for Important Claims Factors for EWEBEWEB

• Document, Document, DocumentDocument, Document, Document• InvestigateInvestigate• Proper DocumentationProper Documentation• Claims Adjuster’s ReportsClaims Adjuster’s Reports• Locating ReportsLocating Reports• Police ReportsPolice Reports• Documented Policies & ProceduresDocumented Policies & Procedures• Timely ReportingTimely Reporting• Oregon LawOregon Law• EWEB Employees vs sound judgement before, during EWEB Employees vs sound judgement before, during

and after incidentsand after incidents• Get the Facts – Due Diligence!Get the Facts – Due Diligence!

EWEB Claims StaffEWEB Claims Staff

• Management AssistantManagement Assistant (1 Full Time (1 Full Time and 1 Part-time) Customer & and 1 Part-time) Customer & Financial Services – Claims process Financial Services – Claims process is part of the “duties” of this is part of the “duties” of this position. Some tasks are position. Some tasks are occasionally delegated to other occasionally delegated to other employees within the division. employees within the division.

• EWEB provides 3 different Utilities EWEB provides 3 different Utilities to the Eugene area. Can you name to the Eugene area. Can you name them? them?

Another Prize Another Prize Opportunity!!Opportunity!!

Answer…Answer…

• ElectricElectric• WaterWater• SteamSteam

Questions ? Questions ?

Call Tammy @ 541-684-5843

Tammy.denouden@eweb.eugene.or.us

www.eweb.org

Mckenzie River – EWEB’s Water source

Thank You!Thank You!

(South Sister, North Sister, Middle Sister – Oregon Cascade Mountain Range)