ENER - Millions about to lose utility service

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The sobering reality is that the Easter season may bring the end of utility service to millions of Americans. Robert Waldrop, OKC, Energy conservation news and resources

+Fair use for education purposes. . .

April 6, 2001 Study Shows 3.6 Million U.S. Families Face Prospect of Losing Energy Service, By John J. Fialka, Staff Reporter of The Wall Street Journal

WASHINGTON -- At least 3.6 million families in 18 states face the possibility of having their energy switched off by utilities because they lack the funds to pay about $870 million of energy bills, according to a new survey. http://public.wsj.com/sn/y/SB986507336310329695.html

Mark Wolfe, director of the National Energy Assistance Directors' Association, which represents state agencies giving energy aid to the poor, said the problem is accelerating, because agencies are running out of federal funds and state-imposed moratoriums on winter energy cutoffs are expiring.

"We've never seen arrearages like this," he said. "For some utilities that deal with large low-income populations, it's going to be a tough call."

The Neada survey shows that one utility -- Southern California Edison, a unit of Edison International of Rosemead, Calif. -- reported that its unpaid bills have nearly doubled, to $100 million from $51 million. Another, Southern California Gas, a unit of Sempra Energy of San Diego, also faces a 96% increase in delinquent accounts.

In Iowa, where natural-gas bills have more than doubled, a survey of poor families showed that 20% were cutting back medical care or prescription drugs to pay for heating and 12% reported going without food. The state reported 180,000 families with $34 million in unpaid bills, double the previous year's record.

Many states, such as Missouri, have spent all their federal-assistance money and are likely to have little or none left to help with summer air-conditioning bills. "Our caseload is up by 30%," said Katherine Taeubert of the state's Division of Family Services.

Workers in Colorado's energy-assistance program are already bogged down negotiating a record number of threatened energy shut-offs that are temporarily stopped for 30 days by an agreement with a utility. "What's going to happen in the spring and summer is anybody's guess," said Glenn Cooper, manager of the program.

Four natural-gas companies surveyed in Kentucky reported 94,000 pending shut-off cases, including one utility with a 300% increase in unpaid accounts. In Louisiana one utility, Entergy Corp., which supplies both gas and electricity to the New Orleans area, reported $32 million in arrearages, up from $14 million last year.

"Utilities really don't like to cut off customers," said Deborah Estes, manager of government relations for the American Gas Association, which represents utilities. "It really is a huge drain on our manpower and it undermines part of our strength, which is our ties to the community."

Gas companies, she said, are making every effort to get customers to work out repayment plans "well in advance" of cutoff deadlines. Energy companies are also joining with groups representing the poor to lobby the Bush administration for further increases in the federal Low Income Home Energy Assistance Program, which provided $2.25 billion this year. The joint effort is called "Keep America Warm."

According to Mr. Wolfe, who took the survey, utilities facing restructuring can no longer carry delinquent accounts as long as they used to: "If you don't have a repayment plan and you don't have federal aid, you could be in trouble."

In about half the states electricity and gas curtailment is restricted by moratoriums, some imposed by the states, others agreed-to by utilities. The moratoriums prevent families from losing heat during the coldest months. Mr. Wolfe said that many expired on Sunday, although a few states are planning to extend them. Both the states and Congress, he said, are facing an unprecedented political problem. "You can't be shutting off hundreds of thousands of people."

Write to John J. Fialka at john.fialka@wsj.com Copyright © 2001 Dow Jones & Company, Inc. All Rights reserved.

-- Anonymous, April 06, 2001


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