The $8 million question: Why do few Vermonters, and fewer Vermont companies, take advantage of a state program to pay overdue utility bills?
So many people are falling behind on their bills that some utility companies are feeling the strain. Green Mountain Power alone says about 23,000 people are at least 60 days behind on utility bills — more than double the number a year ago. But since the pandemic emergency funds became available last month, only 3,000 or so have applied.
The $8 million state program uses federal money to help pay overdue electric, telephone, water, and natural gas.
“This is money that doesn’t have to be repaid,” said Kristin Kelly of Green Mountain Power. “It’s not a loan.”
The utility has been reaching out directly to customers who may qualify, and encouraging them to apply. But some say the moratorium on disconnecting accounts — imposed during the pandemic — inadvertently caused some utility companies to lose touch with their most vulnerable consumers, who are at risk of falling further and further behind.
Although Kelly said that has not been the case with GMP, she told VTDigger, “We know historically that it’s hard to get caught up, especially now with the tough economic situation due to the pandemic. We know people are facing financial hardships.”
“Asking for help can be difficult,” Kelly said. “For some people, they’re finding themselves in a tough spot for the first time. The pandemic is just a really tough time for folks.”
At Vermont Public Power Supply Authority, Julia Leopold said she’s seen people going $1,000 to $2,000 in debt. “When you start to see those numbers getting higher, it’s concerning,” Leopold said. Vermont Public Power Supply primarily services rural areas, she said, including many low-income households.
Both Green Mountain Power and Vermont Public Power Supply Authority have been calling people who may qualify for assistance, and using social media and the mail to urge people to apply.
Burlington Electric has been taking these same measures, in addition to advertising in print.
Leopold said the disconnection moratorium may be one reason customers may not be taking advantage of aid.
“We tend to see people taking action — calling their utility and making payment plans — when there is a threat of disconnection,” she said. Because the pandemic moratorium went into effect shortly after the annual winter moratorium was lifted, some people have not paid their electric bills in almost a year, and now owe a lot of money.
Leopold worries that, if people miss out on aid funding, they’ll be stuck with debts that are insurmountable.
Kenneth Nolan, general manager of Vermont Public Power Supply, agrees that the moratorium on disconnection might take away the urgency to apply for aid now.
“Just about one-tenth of the people who could apply have actually done so at this point,” he said of the consumers in his network. Meanwhile, 5,200 people have past-due bills — up 31% from last year.
Nolan said he worries that if the Covid-related moratorium on disconnection keeps getting extended, people could be 18 months behind on their payments by next spring.
“The dollar amounts are getting significant,” he said, “to the point that we’re concerned that customers won’t be able to get out from under it even with the VCAAP funding.” VCAAP stands for the Vermont Covid Arrearage Assistance Program, the state’s program for distributing aid.
Late payments or lack of payments place strain on utility companies, too. To stay out of the red, they may have to raise their rates, Leopold said, which compounds the problem.
Carol Flint, the consumer advocate at the Department of Public Service, said she’s seen about 175 applications per day for utility aid in the past week, and a total of 3,268. The department had hoped to receive between 8,000 and 10,000 applications by November, and “I think we’re on pace,” Flint said.
“Where I’m disappointed in terms of applications coming in is that we worked hard to make this program as accessible as possible for small businesses, people who are self-employed, the ag community,” Flint said. “The numbers there are lagging behind.”
That’s certainly true at Burlington Electric, according to Mike Kanarick. Out of 21,000 total customers, 177 have applied for funds, and only four of them are businesses. But Kanarick thinks the numbers will pick up before the November deadline.
“With any new program, it takes a while for people to hear about it,” he said. “We’ll keep getting the word out. We want our customers to be able to benefit.”
The money is available through the Department of Public Service, and the deadline for funding is Nov. 30. Eligibility for the program is not based on income. People who attest to economic hardship due to a Covid-related loss of income can apply to cover utility fees that are more than 60 days overdue. Businesses that have a 50% decline in income during one month since the pandemic began can apply online.
“My understanding is that if all customers who were eligible to apply did apply, then we would be in pretty good shape,” Leopold said.
