Saturday, November 7, 2009
 
 
 
 
PUC OKs utility payment plan E-mail
Wednesday, 08 October 2008

BY JIM BARON

PROVIDENCE — Pawtucket’s George Wiley Center won at least a partial victory this week when the Public Utilities Commission (PUC) loosened the rules for reinstating customers who had been shut off for non-payment.

At a special meeting Monday called after a particularly rowdy public meeting the previous week, the commission adopted a three-tiered program designed to make it cheaper for dropped customers to get their utilities restored in time for a November moratorium that will protect many of them from being shut off again until the spring. Advocates said that is particularly important this year, with harsh weather on the way and home heating costs far above previous years.
But those wishing to take advantage of the new rule must act quickly; it expires Dec. 1 and the old rules, which required down payments of far higher percentages of the arrearage — up to 50 percent in some cases — will go back into effect.
The commission was considering a Wiley Center request that they require National Grid (the company that serves an overwhelming majority of the state’s natural gas and electricity customers) and other utilities to restore shut off customers with a down payment of 10 percent of their back bill, with the remainder paid in monthly installments.
The idea of graduated down-payments was proposed to the commission in written testimony from Senate Majority Leader Joseph Montalbano that was read to the commission during the public meeting last week.
“Since some households are less than $1,000 in arrears, a manageable initial payment and twelve months to pay may be reasonable,” the statement read. “For the groups of households who owe up to $2,000 or above $2,000, lower percentages of initial payments and longer time periods to pay the amount owed are required. Those who owe high amounts may be unable to pay more than 10 percent in the first payment, and this must be taken into account. A graduated approach may be needed to address the very difficult reality of high utility costs.”
What the board adopted on a 2-0 vote, with Chairman Elia Germani and Commissioner Mary Bray, who is also a Pawtucket city councilor, voting in favor and Commissioner Robert Holbrook absent, is a program that will require: a 20 percent down payment on balances under $1,000 and the remainder balance to be paid over 18 months; a 15 percent down payment on balances of $1,000 — $2,499
and the remainder balance to be paid over 24 months, and a 10 percent down payment on balances of $2,500 or more and the remainder balance to be paid over 36 months
“They didn’t go as far as we wanted, but they went forward, helping people more than they have in the past,” said Henry Shelton, Wiley Center coordinator.
Shelton noted that the new rule applies to those who are in the “unprotected class” of customers, as well as the protected class. The protected class covers low-income individuals and those with a serious illness in the household, among others.
He said many people mistakenly believe that once the moratorium goes into effect on Nov. 1, people who have been shut off get turned back on, but that is not the case. The moratorium shields protected class people from shut-offs, but it does not restore service to those who have been turned off.
That’s important, Shelton said, because “a lot of people – middle income people -- are losing their jobs and having a hard time paying their utility bills.” He said the new rule comes just in time. “If you live in Burrillville, (the temperature has) been in the 30s the past couple of days.”
Shelton said National Grid had sought a rule that only covered protected class customers, and only shaved 10 percent off of the amount of arrearage that a customer would have to pay to get utilities restored under the old plan. So if a customer had to pay 50 percent of a back bill to get the lights or heat turned back on, that would be reduced to 40 percent, a 35 percent requirement would be cut to 25 percent and so on.
“I am pleased the Public Utilities Commission was open to my request and able to act proactively as we head into the bitter winter months,” Montalbano said in a press release issued Wednesday. “The rising costs of energy, combined with today’s troubled economy, have left us all feeling the crunch. Today’s ruling ensures Rhode Islanders have the utilities they need to survive the winter months while affording them some additional flexibility in getting their accounts in order.”
Shelton said he is confident that Congress will double Rhode Island’s allocation of LIHEAP (Low Income Home Energy Assistance Program) money for the coming winter from $15 million to $30 million. “That will give everybody help, especially oil users” who have seen prices go through the roof in recent months.
He said local community action programs, in conjunction with the state energy office, have started to make crisis grants available to people whose utilities are shut off. These are separate from regular LIHEAP grants and make up to $1,500 available to get people’s utilities restored for the winter.
Shelton said the energy office is also instituting a “Heat to Eat” program, that gives $1 heating assistance checks to certain low-income recipients which makes them eligible for an additional Food Stamp allocation of about $25 a month.
He estimated that approximately 20,000 people will get the additional assistance, with about one-third of those being elderly. The program will pump about $6 million annually into the local economy, Shelton said.

 

 

 

 

Last Updated ( Thursday, 09 October 2008 )
 
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