Disconnection moratorium: PUD urges low-income customers to apply

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While the Jefferson County Public Utility District is discussing how to help all low-income residents with high winter heating bills – not just those who are seniors or disabled – PUD officials want to get the word out about a state law that could prevent people from having their power shut off this winter.

Fewer than a dozen people in Jefferson County used state law RCW 54.16.285 last year, and the PUD didn't push it last year. What the law does is stop the PUD from shutting off people's power between Nov. 15 and March 15, provided the customer’s income is eligible and the customer proves that by filling out a little bit of paperwork.

“We've put it on the Web and we did put it in the bill,” PUD manager Jim Parker said of the information that has been made public.

The paperwork is available at both PUD offices. The paperwork goes to Olympic Community Action Programs (OlyCAP), which administers the federal Low Income Home Energy Assistance Program (LIHEAP). LIHEAP is set to help about 400 low-income people in Jefferson County this year.

“In order to take advantage of it, you do have to do some steps,” Parker acknowledged.

OlyCAP Executive Director Geoff Crump said the process looks complicated, but is worth it for those who also apply for LIHEAP.

“It’s a great option for people, but not many people use it,” Crump said.

“I think there were probably three or four times more people who couldn’t get through it last year,” he said, adding that it’s a process more people ought to take advantage of as they are waiting for LIHEAP funds to come in.

HOW IT WORKS

Unlike the PUD's only current rate break – a discount of $7.49 a month, which is available only for seniors and those who are disabled – the disconnection moratorium applies to all low-income people. (See guidelines in a chart accompanying this story.)

For those whose income is at or below the guidelines, the law says that the PUD can only charge 7 percent of a family’s monthly income for power between Nov. 15 and March 15.

Once the customer fills out the paperwork, the PUD sends it on to OlyCAP for review. Crump said OlyCAP verifies whether the information is correct, and whether the customer is or isn’t eligible for LIHEAP and then passes it back to the PUD. At that point, OlyCAP doesn't necessarily do a thorough income check, as it does with LIHEAP, which requires proof.

“We just compare it and we let them know if they would be eligible at that point,” Crump said. “They should get on the moratorium no matter what and then they should apply for LIHEAP. If they receive LIHEAP, then they are that much better off because they would have reasonable monthly payments and they would get help through LIHEAP.”

Parker confirms that for the dozen or so people who took advantage of the law last year and got put on a payment plan for the rest of the amount they owed, all of them were able to make their payments and keep up with their bills, and none were disconnected.

If that sounds easy, it may not be for some, according to PUD customer service representative Lisa Keller, who has been assigned to help people with the law. She notes that the law also states that people have to pay all of what they owe the PUD before Oct. 15 of the following year.

“A lot of people don’t want to comply and get put on a budget plan,” said Keller. “And if they don’t stick with the budget plan and payments, they can get disconnected.”

That said, the budget plan and 7 percent-of-income rule for disconnections could help more people through the winter, she agreed.

RATE BREAK, THE FUTURE

In the meantime, the PUD is looking at its rate structure and trying to figure out a way to help low-income people pay their bills.

EES Consulting, a private consulting company hired by the PUD, as well as the PUD’s Citizens Advisory Board and a separate local organization, Friends of Public Power, all have suggested the PUD look to give low-income people more of a break than the $7.49 monthly discount.

Parker said he did not expect any changes to be made until after a new commissioner is seated. Either Ken Collins or Tony DeLeo replaces Ken McMillen in January. Both candidates have been vocal about the need to help people in trouble with their bills.

“I don’t think a decision will be made until after January, because they’ll want the new commissioner to weigh in on it,” Parker said.

PUD Commissioner Barney Burke said he is pushing for adoption of a bigger discount sooner rather than later.

“All other rate issues can wait as they are not time-sensitive,” Burke wrote in an email, noting that the consultant said the discount could be as much as $15-$20 a month without raising rates.

Burke also says he doesn’t understand why the PUD is spending more to subsidize credit card fees than it does to help those with low incomes.

“We could double the low-income discount by eliminating the credit card subsidy,” Burke wrote.

LIHEAP HELP

At OlyCAP, Crump said last week that the social service agency has already made 366 appointments in Clallam County and 216 appointments in Jefferson County for those seeking financial help with their heating bills this year through LIHEAP.

OlyCAP has about $550,000 in federal funds to disperse to both counties in 2014 and expects to get another $300,000 next year. So after January, Crump expects to release, as he calls it, another 200 appointments in Jefferson County.

Unlike in past years, Crump said, OlyCAP will be taking appointments in person for those willing to wait in line at OlyCAP headquarters at 823 Commerce Loop in the Port Townsend Business Park off Sims Way. In the past, appointments were made via the Internet, and that was frustrating for a number of people who have no or poor computer access.

Better and earlier access to appointments has made things a lot calmer at OlyCAP than in the past three years, Crump said.

“Those folks who are most urgently needing an appointment … a good chunk of them already have gotten appointments.”

Crump noted that applying for the moratorium help doesn’t put someone at the head of the LIHEAP line, but it can help customers even out their power bills and keep the power on during the winter.

Crump likes what he is hearing at the PUD and hopes the board will continue to focus on getting people who need it more help, because he sees the federal LIHEAP dollars shrinking year after year.

“Over the last three years, dollar for dollar, what’s going out the door [in assistance] this year compared to two years ago is less than half,” Crump said of watching federal dollars shrink as local dollars for heating help also diminish.

The private Puget Sound Energy had also been kicking in hundreds of dollars of subsidies to low-income people before it sold the utility to the PUD in April 2013. As a public utility, the PUD has strict rules regarding subsidies and unpaid bills.

“A good portion of people in our county who are income-eligible will not get service,” Crump said of LIHEAP.

It’s not clear what that means in terms of PUD shutoff notices and disconnections – the best advice is to seek help immediately.