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White Proposes Bill to Protect Vulnerable from Utility
Shutoffs
Harrisburg – In the face of
skyrocketing home heating costs, state Sen. Mary Jo White
(R-21) today announced legislation to help restore service
to low-income families who have their utility service shut
off due to inability to pay.
The senator's legislation
would amend a law enacted at the end of last year that made
it easier for utilities to shut off service. Her bill will
cap reconnection fees and give customers more time pay their
outstanding balances.
"The current law is too
harsh, and the sharp rise in home heating costs has brought
us to the verge of a crisis," said White. "This legislation
doesn't shield customers from the need to pay their bills.
It just sets a more realistic time frame and allows them to
heat their home while they're making payments."
White's legislation would
ease the burden on families with a household income of 250
percent or less of the federal poverty level, which is
$23,925 annually for an individual, $32,075 for a family of
two, $40,225 for family of three, and $48,375 for a family
of four.
Under Act 201 of 2004, which
White voted against, utility companies can require a
customer who has had service suspended to pay their entire
outstanding balance before service is restored. Under
White's bill, households with incomes between 250 and 300
percent of poverty level could pay their balance over 12
months. A family earning between 150 percent and 250 percent
would have 36 months to pay. A household earning up to 150
percent ($29,025 for a family of four) would have 60 months
to pay, with service restored immediately.
Current law also allows
utilities to charge a reconnection fee and security deposit
to have service restored. The senator's bill caps
reconnection fees at $50 and security deposits at $100 for
low-income households.
Under an additional
provision aimed at restoring service more quickly, White's
bill requires public utilities to accept a Low Income Home
Energy Assistance Program (LIHEAP) crisis grant to restore
service. Administered by the state with federal funds,
LIHEAP helps low-income families pay their heating bills
through energy assistance grants.
"Allowing utilities to
demand full payment before turning the heat back on will
place a tremendous burden on too many Pennsylvania families,
especially this year," said White. "This is not simply a
matter of compassion, it's a matter of public health and
safety."
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