Longmont approves framework for financing home energy upgrades through utility bills
The vote authorizes development of a voluntary program; unpaid city-provided financing could lead to utility service disconnection under city collection rules.
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Longmont City Council voted 5–2 on Oct. 6 to authorize a framework for financing eligible home energy upgrades through utility bills. The vote does not open enrollment; the city still must develop a specific program and its terms, as staff said at the council meeting.
The adopted ordinance allows financing for city-approved energy-efficiency, electrification, weatherization, renewable-energy, energy-storage and water-conservation improvements installed at a service address at the customer’s request.
Potential applicants include utility customers at single-family homes, duplexes, attached homes, condominiums and rental properties with four or fewer units. Applicants must be current on utility charges. If a property owner applies for an account where a tenant is the utility customer, the owner must first obtain the tenant’s written consent. Participation also depends on eligibility and available funding.
Repayments would appear as a separate, clearly labeled charge on the regular utility bill. They could include principal, interest and a city administrative fee. A financing agreement would set the amount, interest rate, term and monthly payment; the ordinance does not establish those figures.
Council members who opposed the ordinance raised concerns that missed payments could lead to utility disconnection. Under the ordinance, repayments for financing provided by the city may be subject to city collection procedures and service discontinuance, with applicable notice requirements. For third-party financing, the city’s collection and service-discontinuance rules do not apply to the repayment, and the city is not responsible for money owed to the lender.
Participation is voluntary and is not a condition of utility service. The ordinance also provides for confidentiality of customer information to the extent allowed by law. The city has not yet selected a lender or administrator or set program funding, loan limits, rates or detailed application criteria.