Recent legislative history

In 2006, the State of Rhode Island passed landmark energy legislation in a combined response to the energy price crisis, demand shortages, global warming and record levels of utility shut-offs in 2005 (a high of 22,425 homes). The portion of existing utility sales taxes designated for low income energy assistance and weatherization ($15 million) has been returned to the state budget to cover deficits. Even a roomful of progressive advocates at Public Utilities Commission hearings isn’t enough to stem the rubber stamping of National Grid’s requested 5.2% electricity rate hike; and headlines announcing plans for a natural gas price hike include “low income discounts”, but numbers reveal that low-income natural gas consumers now pay the same rate as everyone else. Despite over 11,000 residential customers losing gas service due to rising prices that outstrip family resources, low-income consumers are slated for another price hike.

Energy justice is needed at home

The poor in Rhode Island have an unfair burden in this current energy crisis. In 2007, over 30,144 households headed by elderly, disabled, working low-income and other poor people with children, lost a basic human hallmark of civilization: fire for lights, cooking and heat. Individual consumers pitted against National Grid, the largest supplier of natural gas in the Eastern United States, and part of a British owned global corporation, have no power and little protection between April 15th and November 1st when they turn to the regulatory body, the Division of Public Utilities. Environmental social justice is not a big concern of Rhode Island’s energy power holders.

A Crisis for the Poor & A Public Health Issue

Federal Low-Income Heating Assistance Program (LIHEAP) has not increased in funding levels of $2 billion nation-wide in 30 years. In the late 1980’s, Rhode Island’s model legislative program, allowing low-income households, mostly comprised of elderly and disabled citizens, to pay a fixes percentage of their income year round for electric and gas, was discontinued due the new federal LIHEAP program. During the past five years, energy prices have risen so rapidly that the utility shut-offs that hit the very low-income households regularly each year crept into the working poor and elderly households in greater numbers. As of December 31st of this year, over 30,144 residential utility customers (households) have had their service terminated; while only 21,527 have had their service restored. Even assuming several thousand residential customers disconnected service dues to moves, etc., an estimated 1,000 families have cold and dark in the winter months approach.

At a cost of $2 million for just sending out trucks to shut-off and restore service, we all pay for the loss of basic needs — access to hot water, lights and a cooking source — to 1/10th of all Rhode Island homes. A crisis erupts in each of these households. Low-income heads of household are forced to plead for mercy on large back due bills to the electric and gas company, agree to payment plans to back off large winter bills plus current bills with a big down payment, only to get their service terminated for not having paid enough. The federal LIHEAP assistance, an average of $275 doesn’t protect these families from suffering without the basics as soon as the moratorium lifts. The volume is so large, that other termination errors occur as customer service representatives deal with a flood of case workers, medical personnel, and impacted individuals trying to maneuver through the patchwork of the moth-eaten social safety net. Crisis management of unnecessary human suffering (including real medical safety threats) is the order of the day. Millions of bad debt is written off (and paid for by consumers) while the poor are asked to pay 40% to 60%% of their incomes during the off-season heating months. Most find this impossible and beg, borrow and scrimp to come up with enough for a down-payment, only to fall short again next month and suffer another termination. This cycle is repeated each year, sometimes more than once a year, for many Rhode Islanders. And we pay for this.

Solution:  A New Fair Energy Payment Plan

The old pilot Legislation, still used in other states, serves as a model and deserves restoration. For the cost of an extra $1 - $2 per month to the average and above average income consumer, the cycle of shut-offs with its attendant medical risks and negative impact on food consumption and educational stability in low-income homes, can be avoided. Legislation is a waiting a bill number that will allow low income households to pay what the average consumer pays for utility bills, as a percentage of their income. A program for managing and forgiving past debt (too heavy a burden to carry) will be included. Low-income households will be required to pay what they can realistically afford every month in order to avoid shut-offs.

The rest of us will know that a buck or two has been well spent and the cost of environmental changes and energy price hikes won’t be placed unfairly on the doorsteps of our neediest citizens.

Please vote to support the legislation H-7877, sponsored by Rep. Art Handy for Energy Fairness.