FOR IMMEDIATE RELEASE
July 25, 2011
CONTACTS:
Philene Taormina – 802-279-5020
Dave Reville – 802-951-1303
Public Service Board Approves Energy Support Program
Thousands of low-income Vermonters to receive help paying electric bills
BURLINGTON, VT – The Vermont Public Service Board has given final approval for the establishment of an Energy Support Program (ESP) that will provide electric bill assistance to the low-income ratepayers of CVPS and GMP. Vermont is the only state in the Northern US without such a program, and AARP Vermont has been fighting for such an outcome for more than seven years now and formally petitioned the Board on this matter two years ago after the Vermont Legislature paved the way for action by the Board.
“This ruling marks the culmination of AARP’s long battle to help Vermont’s poorest citizens afford to keep their lights on,” said Greg Marchildon, AARP Vermont state director. “It’s extremely gratifying to have finally won a very long, drawn out battle, waged on behalf of Vermont’s poorest citizens,” he said. “The Public Service Board has made a very comprehensive and thoughtful ruling on this matter and the diligence of the Board’s hearing office June Tierney is to be applauded by all involved,” he said. Marchildon said that AARP faced a number of obstacles and challenges from parties involved over the years before prevailing with a successful outcome.
The decision as outlined by Tierney established the need for this program very clearly: “Electricity is a necessity for a safe and healthy household. In 2009, there were 11,901 instances in Vermont of electric service disconnection. To lose electricity at a residence means to lose the light and heat of a home…. Electricity is a necessity that many Vermonters cannot afford.”
Marchildon stressed the impact on older residents. “A utility-based energy support program will help to make Vermont more affordable for low and fixed-income seniors who want to remain in their homes as they age. Older and economically disadvantaged residents are hardest hit by high electric bills and need electricity to keep the furnace running, to power their phones and to live a normal life. Sadly, many seniors and others forgo medications and even food to keep the electric bills paid,” he said. In Vermont, 40% of seniors over age 75 live on an annual income of $21,660 or less annually and more than half would qualify for the ESP.
“We intend to reach out to our members and the public across the state that may be eligible to inform them of available bill assistance,” said Marchildon. He said AARP Vermont would be actively monitoring the implementation of the program to ensure it is carried out as designed.
The program will be funded by CVPS and GMP ratepayers including residential, commercial and industrial customers. As the state’s largest utilities, CVPS and GMP have about 37,000 customers that would be income-eligible to participate in the program and savings would average about $20/month per household – or 25% of their household electric bill. While aimed at low income residents, the program could benefit all classes of ratepayers who currently pay for the debt that utilities cannot collect. Vermont ratepayers are already paying for the hidden costs of disconnections, reconnections and unpaid bills.
Vermont is the only northern state in the nation that does not help low-income citizens afford the electricity they need. “Ratepayer funded energy support programs are not just good social policy, they make economic sense as well,” said Philene Taormina, AARP Vermont advocacy director who has worked on this issue for more than seven years. “If the program successfully helps Vermont’s two largest utilities reduce the amount of uncollected debt by making electric more affordable for low and fixed-income Vermonters – then all ratepayers benefit.
Taormina stressed that independent evaluations of the effectiveness of low-income electric bill assistance programs in other states show that these programs reduce termination notices and unpaid bills – the cost of which is passed on to all customers. By increasing the number of people who pay their electric bills we reduce these costs for all ratepayers.
“AARP survey research found that a strong majority of Vermonters (80%) support a low-income energy assistance program — even it means paying a little more on their electric bill,” said Taormina. “Clearly, the Public Service Board appreciates the obvious need and the benefits to Vermont ratepayers and has responded accordingly.”
AARP is a nonprofit, nonpartisan membership organization with 127,000 members in Vermont and 40 million members nationally. Through a wide array of special benefits, services, and information resources, we help our members make important choices, reach their goals and dreams, and make the most of life after 50.
