COVID-19 utility moratorium ends Sept. 30

Docket number: U-200281


State leaders urge customers to contact utilities about keeping services on

LACEY, Wash. - The emergency proclamation preventing shut-off of water, electricity, or natural gas services is slated to end Sept. 30. It is among the many emergency measures approved by Gov. Jay Inslee in the wake of COVID-19.

State leaders and utility operators estimate that more than 500,000 Washingtonians have overdue bills that could result in service shut-offs. They urge customers to contact their utilities as soon as possible and make a plan to keep their services on.

“This moratorium has provided hundreds of thousands of Washington families with much-needed peace of mind during the pandemic. Now utility companies are eager and ready to help their customers make a plan that keeps their services on,” Inslee said. “I urge people to make that call as soon as they can. That call can give a family one less thing to worry about as fall and winter approach.”

“When the pandemic first hit, we committed that no customer should go without lights, heat, or hot water,” said Puget Sound Energy President and CEO Mary Kipp. “We stand by that as the pandemic continues to impact customers more than a year later. There is a level of assistance that is unprecedented and can make a significant difference for our customers.”

“The state’s not-for-profit, community-owned utilities are committed to working with our customers facing arrearages due to the impact of COVID,” said Washington PUD Association Executive Director George Caan. “Our efforts continue to focus on making contact with customers, connecting them with assistance, and working with our customers to establish a pathway to recovery.”

Washington’s private investor-owned energy utilities – which cover about half the state’s customers – have more than 280,000 customers with overdue bills. They have provided more than $28.5 million in assistance funds during the pandemic. Almost $20 million of the funds was through COVID-19 assistance programs. Washington’s consumer-owned utilities – which serve nearly 60% of Washington households – began a wide range of measures to keep customers connected to essential services. This includes efforts to:

  • Suspend disconnections and late fees,
  • Delay scheduled rate increases,
  • Set up payment plans for customers,
  • Create new payment relief programs, expanding eligibility criteria for existing programs,
  • Hold fundraisers to support utility assistance programs, and
  • Apply deposits to existing bills.

In addition, consumer-owned utilities connected customers to federal aid. In some cases, they partnered with county and city governments to direct a portion of the federal American Rescue Plan Act funds to support utility bill assistance. Customer assistance options will vary across utility providers. Options that customers can ask about include:

  • Payment plans. Most utilities are able to set up payment plans over several months for customers to pay past-due balances.
  • Financial assistance. Some utilities are able to offset a portion of a customer’s past-due balance and reduce the amount owed.
  • Federal assistance. Low-income households might qualify for federal energy and water assistance programs. These programs are called LIHEAP (low-income heating and energy assistance program) and LIHWAP (low-income household water assistance program). Utilities can advise customers on how to contact local organizations that are managing applications for these programs on behalf of the Department of Commerce.

Private, investor-owned water and energy utilities regulated by the UTC cannot charge late fees or deposits until April 2022. They must offer long-term payment plan options up to 18 months. They must also notify the commission before disconnecting any customers when the moratorium ends. This allows commission staff to ensure customers are properly notified about the disconnection and made aware of assistance options.

Public, or community-owned, utilities are governed by local elected officials. Community-owned, not-for-profit utilities’ policies will vary according to local needs. Community-owned energy and water utilities are urged to:

  • Continue to make good faith efforts to reach customers with past-due accounts, including joining with community organizations, and provide details about other assistance options.
  • Help customers identify utility, local, state, and federal financial assistance programs for which they may qualify.
  • Offer extended payment plans of 12 months or longer.
  • Waive disconnection, reconnection, site visit, and late fees accrued during the disconnection moratorium, if customers sign up for payment assistance.
  • Avoid reporting overdue accounts to credit bureaus or placing liens on customers with overdue accounts for at least 180 days.

“I am grateful that utilities across the state are stepping up and working to assist their customers,” said Dave Danner, chair of the UTC. “These are unprecedented times, and this calls for taking unprecedented steps as we work towards recovery.”

For more information, customers can visit commerce.wa.gov/utility-assistance. Information is available in 36 languages.

The UTC regulates the rates and services of investor-owned electric, natural gas, and water utilities, telecommunications, solid waste haulers, household-goods movers, charter-bus companies, commercial ferries, pipeline companies, and a low-level radioactive waste repository. The commission does not regulate broadband or Internet services, including those provided by regulated telecommunications companies.

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Topic(s)
Consumers
Utilities
Energy
Water