Denton Public Utility Board approves contract with Acceleron for prepaid utility service

The City of Denton Public Utility Board voted unanimously Oct. 27 to recommend adoption of an ordinance authorizing a contract with Acceleron Software to provide the utility’s prepaid billing platform. The board’s action authorized a not-to-exceed amount of $15,460,605.23 for the contract and described the agreement as a three-year initial term with ten one-year renewal options extending the potential term through September 2038.

The board’s customer-service manager, Krista Foster, told the board the prepaid program was launched in October 2018 and that technical reviews had initially expected a 10-year lifecycle but later recommended a 20-year lifecycle for the product. Foster said the platform gives residential customers daily usage and cost information, reduces large final bills and arrears, does not require deposits, and charges no late or interruption fees. “We introduced prepaid utilities in October 2018,” Foster said, and later told the board that a “20 year, life cycle option was more appropriate for this product.”

The nut graf: The contract approval supports a program city staff say helps customers avoid large overdue balances and service interruptions by letting customers prepay and monitor usage in near real time. Board members pressed staff on the projected cost, the scale of potential enrollment, fee structure and contract terms before the unanimous vote.

Board discussion and staff explanations

Foster and other staff described how the system works…