CLP Helps Households Get Assistance With Utility Debt
February 8, 2023 - CLP works with other ratepayer advocates as a member of the Energy Affordability Program Working Group (WG), and we are happy to report that the WG’s work has resulted in canceling almost $1 billion in utility debt for New York State households and small businesses. The Working Group, which also includes New York’s investor-owned utilities and members of the Department of Public Service, was created by the Public Service Commission to address the more than $1.9 billion in unpayable utility bills that New York State ratepayers accumulated during Covid-19.
After months of work, the WG came up with a two-phase response. “Phase 1,” approved in June, 2022, provided more than $600,000 to wipe out arrears prior to May 1, 2022, for ratepayers enrolled in utility “affordability” programs – recipients of federal benefits like HEAP or SNAP who are also enrolled in the individual utilities’ special low-income programs. Since up to 50% of eligible ratepayers are not enrolled in these programs, CLP hosted SEVEN workshops to help eligible residents to sign up for the utilities’ affordability programs – which allowed residents across Central Hudson territory to have their prior arrears canceled. Some events also included participation from Public Utility Law Project (PULP), Cornell Cooperative Extension-Dutchess County, SNAP and HEAP representatives from various county Department of Social Services, and members of the staff of the Department of Public Service. Events were held at various locations throughout the mid-Hudson Valley- including Newburgh, Ellenville, Kingston, and Catskill. Phase 1 ended on December 31. The debt relief comes in the form of a credit that’s applied monthly to household balances.
“Phase 2” of utility debt relief was approved in January, 2023. It provides fixed bill reduction amounts to customers who did not qualify during Phase 1. For Central Hudson customers, the maximum amount that will be forgiven is $2,000 for residential customers and $1,250 for small businesses. Again, the program applies only to outstanding arrears accumulated before May 1, 2002. No actions are required to qualify for these reductions, and the utilities are not allowed to shut anyone off until after March 1, 2023, or after all the payments have been made, whichever is later.
Despite energetic efforts by CLP and other advocates pushing for , Central Hudson and the other utilities’ shareholders are covering only 15% of the cost of the debt forgiveness. In Central Hudson’s case, the utility is contributing $4.048 million toward a total estimated cost of $30.134 million (just $13.4 percent!). The remaining $26.086 million will be charged to – you guessed it! – the ratepayers. Central Hudson customers will be paying $0.88 a month for the next seven years!! This may not seem like a large sum, but considering the unfettered profits of what’s meant to be a public utility, Central Hudson should be paying more!
Most recently, Governor Hochul announced another $200 million in funding for additional utility debt relief. It has not yet been decided how this money will be distributed. CLP invites readers to stay tuned. Those who would like to advocate for Making Shareholders Pay! or to complain about the utilities’ failure to implement these programs in a timely way, etc., are invited to enter their comments here.