Changing Rules to Prevent Utility Shutoffs
Posted on July 26, 2022 by Jennifer Hill-Hart
Tags, Energy
The Oregon Public Utility Commission (PUC), the state’s utility regulator, is proposing new rules to protect customers from utility shutoffs. Utility shutoffs are more than an inconvenience - they are incredibly painful, dangerous, and expensive for families. Low-income households and people of color are most likely to have their power shut off. These proposed rule changes would be a major win for Oregon households.
The proposed rules contain changes that provide utility protections for low-income customers and those with significant health risks, including:
- Ending late payment charges for low-income customers
- No service shutoffs for those with significant health risks
- Eliminating deposits for low-income households and requiring utilities to return deposits to low-income residential customers
- Limiting charging reconnection fees for low-income customers
- Preventing utility shutoffs in many extreme weather situations, including extreme cold or heat, and poor air quality.
CUB believes these rules reduce energy burden for low-income customers and are a step in the right direction. However, we continue to advocate that they go further.
Shutoffs are Bad for Households
When a home’s electricity gets shut off, it can very easily cause a cascading effect for that family. We use energy in so many ways in our home: physical safety and comfort, food safety, communication, healthcare, entertainment, and more. Losing power comes with many hidden costs, especially for low-income households who can least afford these expenses.
For those with medical conditions that require electricity, a shutoff can be life-threatening. Losing power to a medical device or heating/cooling can quickly turn into an unsafe situation for many Oregonians. Safely storing medicine that requires refrigeration is also impossible, forcing people to replace expensive prescriptions like insulin.
Losing power also means losing refrigeration for food. Having to replace a refrigerator full of food is incredibly expensive. This can force a household to choose between buying new groceries and restoring power. For many low-income families, losing power can be devastating to their budgets outside of just the energy expenses.
If not reversed, shutoffs can also cause families to lose their housing entirely. Without electricity, renters can be evicted. Even if you own your home, living without power can be grounds to lose ownership. Oregon is facing a housing crisis. We should not be continuing shutoff policies that contribute to homelessness.
Oregonians should not have to pay deposits to get their utilities turned on.
In the proposed rule changes, low-income customers will no longer face utility deposits. CUB and community advocates are in support of this rule, but would like it to go further.
CUB, along with other community advocates, is pushing to remove any credit requirement for utility service. We believe these rules are outdated, disproportionately target low-income customers, and present an unnecessary barrier to utility access. Energy service is a vital resource for all Oregonians.
CUB has successfully advocated for utilities to voluntarily end deposits. We will continue to advocate for rules to make this a permanent requirement for all utilities.
Customers should be able to pay their bill at the time the utility comes to disconnect their services.
Currently, utilities may accept payment (including cash) “at the door” if a utility comes to a customer’s home. If a customer wants to pay a bill in person to avoid a shutoff, they should be able to.
Unfortunately, regulators’ proposed rule changes don’t require utilities to accept in-person payment. Rather, they propose that utilities must notify customers that they have 24 hours to contact the utility and make arrangements to pay the bill. But it doesn’t make sense to shut off someone’s utilities when they are standing there with payment. This proposed rule doesn’t go far enough, and CUB has requested that the PUC change the rule to require utilities to accept payment at the door.
The Process of Changing Shutoff Rules
CUB and other advocates, Oregon utilities, and PUC Staff have spent the last two months working on additional shutoff protections for customers. The decision now goes to Commissioners to adopt new shutoff rules (see docket AR 653). CUB thinks the proposed rules are a step in the right direction, but hopes the PUC will consider and accept our suggestions for additional protections.
As many struggled financially in 2020, regulators worked to protect customers during the COVID-19 pandemic. The PUC accepted an agreement from electric and natural gas utilities that protects customers’ access to energy. CUB fought hard to make these protections some of the strongest in the country.
These 2020 agreements included protecting customers from utility shutoffs and pausing the utility deposit rule. Regulators also began to investigate permanent ways to help households keep their utilities turned on.
Now, the PUC is looking to permanently change rules around utility disconnections, payment plans, late fees, and deposits. Regulators are also analyzing other barriers to keeping utilities on. This includes alternatives to shutoffs and protecting customers during times of severe weather and harmful air quality.
The PUC will hold a final meeting in this rulemaking on September 1, 2022, at 1:30pm. The PUC is accepting written comments on the proposed rules up until 4:00pm on September 7, 2022. You can find information on how to participate at the public meeting or submit written comments here. When sending your comment, make sure to include “Docket AR 653” in your subject line and comments.
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07/26/22 | 3 Comments | Changing Rules to Prevent Utility Shutoffs