CUB Supports Increased Energy Assistance Funding for Oregonians Via HB 2739
Posted on April 6, 2021 by Charlotte Shuff
Tags, Energy
Too many Oregonians are struggling to afford their electricity bills, and there is not enough bill payment assistance to go around. Existing energy assistance programs were stretched thin before the COVID-19 pandemic. Now, the need for energy assistance has skyrocketed. In September 2020, the Oregon Public Utility Commission (PUC) approved an agreement among major energy utilities, CUB, and other stakeholders to, among other things, prohibit service disconnections. In February, the PUC extended the disconnection moratorium until June. In advance of potential shutoffs, Oregon needs to boost assistance programs to keep residential customers connected.
There are two main programs for energy assistance in Oregon: one federal and one state. Congress funds the Low Income Energy Assistance Program (LIHEAP) with taxpayer dollars and then monies flow to the states. Oregon Housing and Community Services oversees the Oregon Energy Assistance Program (OEAP). Because the state manages OEAP, the program is easier to adapt for current needs.
What is the Oregon Energy Assistance Program (OEAP)?
OEAP is a state energy assistance program that provides funds to low-income households to help residential customers pay their electricity bills. The program is funded by a small meter charge on the bills of customers of the state’s two largest electric utilities, Portland General Electric (PGE) and Pacific Power. These funds are only available to residential customers of PGE and Pacific Power who meet eligibility requirements.
Customers receive these funds through community-based organizations, and payment goes directly to utility companies. To qualify, you must be at or below a certain income level and have documentation of energy costs. OEAP gives priority to customers who are at risk of being disconnected.
Why Does the Oregon Energy Assistance Program (OEAP) Need More Funding?
With a current annual budget of $20 million, the need drastically outweighs the available funds. Before the pandemic, OEAP covered only about 20 percent of Oregon households who are eligible for the program according to Oregon Housing and Community Services.
As the public health crisis continues, more Oregonians are seeing bills pile up. While the need for energy assistance is not new, the growing levels of unpaid utility bills are alarming. CUB expects that by the end of the energy shutoff moratorium, unpaid bills accrued by residential customers of Oregon’s major electric utilities alone could reach or exceed $80 million.
CUB has worked with regulators, utilities, and other stakeholders to create new utility-run programs that start this spring. (See our published blog posts with enrollment information for customers of PGE and Pacific Power, and stay tuned for pending reports on programs offered by Oregon’s natural gas utilities.) These utility programs will provide an estimated $30 million to help residential electric customers affected by the pandemic reduce their past-due bills. Oregon will also receive increased LIHEAP dollars from the recent federal stimulus package. Additional non-LIHEAP monies may also be available from federal stimulus. Even so, these programs combined with OEAP will likely be insufficient to cover residential customers’ total past due balances.
Without more funding, CUB expects Oregon to fall short in addressing unmanageable bills for residential customers. This means that many Oregon households could face disconnection with no available support starting in July.
CUB Supports a Temporary Funding Increase
To help Oregon households and avoid mass shutoffs, CUB supports a temporary increase in funding to OEAP. House Bill 2739 will add $10 million in energy assistance funds to the program. These funds will help customers pay down past-due balances, many of which date back to the early days of the pandemic.
With the utility shut-off moratorium ending in June, now is the time to help Oregonians stay connected. CUB supports passing HB 2739 to help the many Oregonians who could soon face disconnection.
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08/18/21 | 0 Comments | CUB Supports Increased Energy Assistance Funding for Oregonians Via HB 2739