Eliminating Utility Deposits Reduces Energy Burdens

CUB is working to end unfair utility deposits for Oregon households. These added costs make it harder for residential customers to access, keep, and restore service. Deposit policies have targeted customers who can least afford added household costs. 
   
Deposits are unnecessary costs that residential customers, especially low-income customers, should not have to pay. CUB believes multimillion-dollar utilities should not be allowed to use energy-burdened customers as a source of financing.

What is a utility deposit?
Deposits are meant to protect utilities from customers who cannot prove they are a good credit risk based upon the assumption those customers cannot pay their bills. Utilities also add these charges to reestablish service after being disconnected.

Typically, the deposit is based on two months of service and customers must pay it when they sign up. Even if the utility allows a customer to spread the deposit out over two months, the customer’s bill is higher than other customers. Additionally, a substantial part of the deposit is needed upfront.

Why get rid of residential customer utility deposits?
Utility deposits punish people for living in poverty and ignore the longstanding racial and economic discrimination that created inequitable energy burdens.  Oregon is experiencing a housing crisis and utility deposits add barriers to securing housing. Landlords often ask for upfront rent and a security deposit of over one thousand dollars. Requiring two months of utility bills drives up the upfront cost of accessing housing. Getting rid of deposits would make finding housing much easier.
     
Many low-income customers must choose which bills they can afford to pay, even if they do have stable housing. Deposits make utilities even harder to afford. With tight budgets, things like an unexpected medical bill can force families to choose between paying for other necessary expenses over a utility bill and risk disconnection.   

Data shows that utility disconnections disproportionately harm people of color and older people. Requiring reconnection deposits adds to this harm. Equity demands ending policies that unfairly saddle Oregonians with high energy burdens.

Oregon energy assistance programs help customers with their bills. Now, Oregon utilities are developing low-income programs that will offer more help. These policies are fairer alternatives than the supposed need for utility deposits.

What is CUB doing to end utility deposits and how can you help?
CUB is working with utilities to reform deposit policies. Already, our advocacy has won some victories. Responding to the impacts of the COVID-19 pandemic, Oregon’s largest utilities agreed to suspend deposits through October 2022. Cascade Gas ended residential customer deposits in 2019. This year, Portland General Electric agreed to eliminate residential customer deposits.

CUB will continue to push to eliminate deposits for residential customers of other Oregon utilities. Regulators are currently investigating how utilities can create low-income residential customer discount programs. Here, CUB is fighting to reduce customer energy burden, including showing that utility deposits do more harm than good.

You can join CUB’s advocacy efforts, too. Write letters to the editor showing your support for low-income programs that end residential customer deposits. You can also call your utilities and let them know you support these efforts. CUB will continue to update you on public comment opportunities where you can make your voice heard. Get regular updates by signing up for the CUB email list.

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