Residential electric and natural gas customers who have experienced, or are facing, a disconnection will again have the option of making a one-time payment of $175 in order to maintain or restore their service.
On Sept. 14, the Public Utilities Commission of Ohio (PUCO) issued its 28th annual Winter Reconnection Order allowing customers to pay their amount owed, or $175, whichever is less plus a reconnection fee of no more than $36, if applicable. This option is available until April 13, 2012.
For households with incomes below 200 percent of the federal poverty guidelines, funds provided through the Low Income Home Energy Assistance Program (LIHEAP), Winter Crisis Program (WCP) or other energy assistance programs may be used to pay the $175 charge. Households with incomes above 200 percent of the federal poverty guidelines must enter a payment plan for any remaining balance above $175.
The PUCO has issued a new provision this year for certain customers who have been dropped from the Percentage of Income Payment Plan (PIPP Plus) for non-payment. These customers must pay up to $50 per utility of any PIPP Plus default amount over $175. The PUCO order applies to PIPP Plus customers in default for failure to pay their monthly PIPP Plus payments and may be facing disconnection, as well as those customers who have been disconnected and wish to reenroll in PIPP Plus.
“While the Winter Reconnection Order will provide necessary assistance to customers who have been disconnected from, or are facing loss of, their electric or natural gas service, the OCC remains concerned that in the current economic climate, there are limited resources available to reduce the percentage of Ohioans facing this situation,” Consumers’ Counsel Janine Migden-Ostrander said. “We urge those behind on their bills to seek available payment assistance or contact their local utility to arrange a payment plan before being faced with a service disruption and expensive reconnection fees.”
Other highlights of the PUCO’s order are as follows:
- Customers requesting new natural gas or electric service who have no outstanding balance with the utility may establish new service by paying the $175, rather than paying the required security deposit.
- If the security deposit exceeds $175, the remaining balance will be added to their next month’s bill.
In addition to the winter reconnection provision, the following assistance programs are available:
Percentage of Income Payment Plan (PIPP Plus)
PIPP Plus is a state-initiated income-based payment arrangement where customers at or below 150 percent of the federal poverty guidelines may opt to pay a percentage of their monthly income for electric and natural gas service. PIPP Plus offers some good incentive programs that can help customers who pay their utility bill on-time avoid the accrual of debt. Customers applying for PIPP Plus must also apply for any other energy assistance programs for which they are eligible.
Low Income Home Energy Assistance Program (LIHEAP)
LIHEAP is a federally funded program that is administered through the Ohio Department of Development (ODOD). LIHEAP is designed to help consumers at or below 200 percent of the federal poverty guidelines pay for their heating costs. A portion of the LIHEAP funds are used to pay for crisis assistance through the Winter Crisis Program (WCP). Customers may apply annually for LIHEAP benefits and can use the WCP program one time per heating season. LIHEAP benefit amounts vary depending on the household size, projected heating costs, location, and the amount of federal funding available. WCP benefits are limited to the $175 that can be used to avoid disconnection or to have services reconnected.
Budget Billing
Budget billing, administered by the utility companies, allows consumers to spread energy costs over a 12-month period to have more uniform monthly payments. Customers should contact their utility company to learn more about the program.
Payment Plans
When facing disconnection, consumers may propose a payment arrangement that works best for them to their utility company. If the company finds the arrangement unacceptable, it must provide one of the following options:
- “One-ninth” payment plan – Customers make nine equal payments on their arrearages and are placed on a budget payment plan. The budget plan is based on a nine or 12-month calculation and may be adjusted during the nine month period, as needed;
- “One-sixth” payment plan – Customers pay 1/6th of the total amount due (current plus past due charges) over a six-month period; or
- “One-third” payment plan – Customers pay 1/3rd of the total amount due (current plus past due charges) each month. Utilities are required to offer this plan during the winter heating season ((Nov. 1– April 15).
Telephone Lifeline
The federally funded Lifeline programs provide financial assistance to low-income residents, providing lower monthly charges, discounts to establish service and special payment arrangements for customers with traditional landline telephones. Several Ohio telephone companies also offer a state Lifeline program with higher levels of assistance.
For additional information about all available assistance options, customers can visit the OCC website, www.pickocc.org.
