End of moratorium on power shut-offs could leave non-paying Hoosiers in dark

Clark County

Discussion

March 11, 2009

By DANIEL SUDDEATH The News and Tribune Wed Mar 11, 2009, 11:37 AM EDT

As the end of a moratorium preventing power shut-offs for lack of payment looms, utility companies are urging Hoosiers behind on bills to be proactive to keep the lights on.

Monday is the last day utility customers behind on their payments can expect to continue to receive power without making arrangements with their providers. Just making the phone call can keep service from being shut off, said Chase Kelley, spokesperson for Vectren.

“As soon as you open a bill and you know you can’t pay it, call us that day,” Kelley said. “We understand that this is a difficult economy for many Hoosiers, but we don’t know your financial situation. We don’t know that maybe someone has lost a job, or that another bill came due and you’re struggling to make ends meet.

“However, we understand that situation occurs, and we have a number of assistance options that can help people weather the storm.”

Vectren and Duke Energy offer customers the opportunity to make a payment arrangement, which prevents late fees that force past-due customers further into debt. However, customers are typically not eligible if they have not honored past agreements or have been disconnected, said Angeline Protogere, spokesperson for Duke Energy.

“The most important thing a customer can do when they think they are going to have trouble paying a bill is to contact us,” Protogere said.

Both utility companies also offer “budget” billing, which splits a one-year average cost into 12 similar payments. The amounts are based on historical data and adjusted for expected changes in energy costs. Budget billing includes one “true-up” period, where the expected and actual uses are compared and future bills are adjusted. Bills can be adjusted in either direction, depending on whether a customer is paying too much or too little, Protogere said.

“[Customers] still pay up for all of the energy they use,” Protogere said. “It helps make the payments more predictable.”

Low-income families might be eligible for other forms of assistance, said Phil Ellis, administrator of community development for Community Action of Southern Indiana.

Households at or below 150 percent of the federal poverty level could be eligible for up to $350 of energy assistance per year, Ellis said.

Additionally, households facing the immediate prospect of disconnection could be eligible for another $250 of crisis-energy assistance.

Community Action has processed more than 4,000 requests for energy assistance this winter, up 35 percent from last year, Ellis said.

“The heating costs and the electric are just so high that persons cannot afford it,” Ellis said. “That’s the main thing we’re seeing.”

Duke Energy donated $780,000 to Community Action agencies throughout Indiana for energy assistance this winter, Protogere said. But Ellis said Community Action of Southern Indiana has already exhausted the Duke Energy-donated funds.

First-time applicants may be eligible for additional benefits, Ellis said.