CUB Advocates for Consumer Protections as Disconnection Moratorium Ends

Although Oregon has been a leader in its efforts to protect residential customers of regulated energy utilities, a May 20 Oregon Public Utility Commission (PUC) decision didn’t align with recommendations from CUB and other advocates. The PUC extended the disconnection moratorium that has been in place since 2020 by only one month, to July 16. CUB’s major concerns are that this end date is too soon and potentially inadequate pandemic-related bill payment programs launched only recently. CUB is committed to ensuring protections for vulnerable customers.

Here is a quick recap of PUC actions taken prior to the May 20 decision: The PUC began a COVID-19 customer impact investigation in the spring of 2020. With significant input from CUB, in September of 2020, the PUC approved a COVID-19 customer impact agreement with two major elements:

• A moratorium on energy utility service disconnections due to unpaid bills through March 2021. The PUC later extended the moratorium to June 15.
• Direction for energy utilities to develop bill payment programs for struggling customers with nearly $39 million to reduce customers’ past due bills.

These policy elements are related since customers who can reduce their past-due bills will be in a better position to handle the end of the disconnection moratorium. CUB worked hard with allies, utilities, and the PUC to develop effective bill payment programs, but the utilities only launched them in April 2021.

The impact of the PUC extending the disconnection moratorium to only July 16 is that the regulated energy utilities can send 15-day disconnection notices to their residential customers with past due balances. This means that those customers can be disconnected as soon as August 1 unless preventative steps are taken, such as customers using utility bill payment programs or entering into payment agreements. 

How does the PUC decision differ from what CUB wanted?
Prior to the PUC’s recent decision, CUB and NW Energy Coalition submitted a proposal recommending an extension of the pandemic moratorium through September and eliminating balances for all residential customers 60 or more days past due. The proposal also advocated for a 2021-2022 winter heating season disconnection moratorium. CUB has long supported preventing disconnections during the winter when access to heat can save lives.

What exactly does the May 20 PUC decision say?
The PUC’s decision has four components. Each may require public workshops facilitated by PUC Staff and demand additional capacity from non-utility stakeholders to ensure protection of vulnerable customers.

1 - Disconnection moratorium end date.
Although the PUC extended the pandemic disconnection moratorium end date from March 2021 to June 15, the questions before the Commission in May were whether or not to extend the moratorium again and, if so, for how long. CUB has advocated for multiple extensions due to economic or public health considerations, and to ensure timely use of the utilities’ bill payment programs in alignment with emergency resources. Because customers may have their gas or electric service disconnected on August 1 for non-payment, CUB believes the PUC’s decision to end the moratorium on July 16 is too soon.

2 - Supplemental funding.
A critical element of the original 2020 agreement was the PUC’s direction that the utilities use at least 1 percent of their 2019 retail revenues to help residential customers impacted by the pandemic reduce their past due balances. This revenue percentage from all regulated energy utilities amounts to $39 million. The utilities developed bill payment programs to deliver these dollars, but those programs began in April. The PUC’s decision directs PUC Staff to work with the utilities and other stakeholders to ensure that these programs are reaching customers effectively. The decision also compels an examination of the degree to which these programs should be expanded with additional funds, and how to keep customers connected to the system without increasing costs to other customers.

3 - Disconnection practices.
The PUC’s recent decision is clear: By ending the moratorium, customers who have not entered into payment arrangements could have their service disconnected. However, a customer attesting to having made, or planning to make, an effort to receive emergency assistance should prevent disconnection. The PUC decision also states that utilities shall use “reasonable best efforts” to prevent disconnections by extending and/or renegotiating payment agreements with customers, and that partial payments of even 10 percent of the balance owed should prevent disconnection. In addition, PUC staff must work with stakeholders to identify the specific characteristics of customers who may require additional protections after the moratorium period.

4 - Diversity, Equity, Inclusion (DEI) Director advisory committee.
The 2020 agreement instructed the PUC’s DEI Director to convene an advisory committee to offer policy recommendations on specific dockets regarding energy burden and related social inequities. The PUC’s latest decision calls for the DEI Director to expedite this work by providing specific policy recommendations regarding energy utility disconnections in the post moratorium period. CUB will be actively involved as a member of this advisory committee.

Next Steps for the PUC and CUB.
CUB will continue to be a key advocate in public workshops on each of the four points discussed above. PUC Staff must update the Commissioners on supplemental funding and disconnection practices before the moratorium ends. The DEI Director must provide an interim report to the Commissioners in August and the final report in December. CUB is still disappointed in the PUC’s decision to end the moratorium in July, but we are committed to ensuring that vulnerable customers are left unharmed as Oregon recovers from the pandemic.

To keep up with CUB, like us on Facebook and follow us on Twitter!

• Share this post on Facebook.
• Share this post on LinkedIn.
• Share this post with email.

« Back