More U.S. Households Seek Help With Utilities

[question everything]

Source: The Wall Street Journal


By REBECCA SMITH
April 26, 2008; Page A5

More U.S. households are falling behind on their utility bills and seeking public assistance, according to groups that arrange for help. They fear a record number of families will face utility shutoffs in coming months, reflecting fallout from a distressed housing market and rising prices for food and energy.

"The underlying problem is many families are becoming poorer and have to pick which bills to pay," said Mark Wolfe, executive director of the National Energy Assistance Directors' Association, a group that represents state directors of energy-assistance programs. Some states are attempting to buy some time by delaying the date at which utilities are allowed to begin disconnections. That is often prohibited during the winter because it could be life-threatening. Connecticut extended a moratorium on shutoffs to May 1 from April 15 this year.

(snip)

Some states have seen double-digit increases in the number of families receiving public assistance to pay their utility and fuel bills. The increases go as high as 80% in Nevada and 44% in Oklahoma. States control how they dole out their share of the $2.5 billion in federal funds distributed under the Low Income Home Energy Assistance Program. Many states are asking Congress to provide more funds for energy assistance. A preliminary survey by the National Energy Assistance Directors' Association found that the number of families receiving federal energy-assistance funds is the largest in 16 years. For the 2008 federal fiscal year, it topped 5.8 million, a 3.8% increase over fiscal-year 2007. Preliminary data from the association found that delinquencies are rising. Among the states showing increases were California, with 1.7 million households behind by $300 million.







Read more: http://online.wsj.com/article/SB120916736167346285.html (subscription)

[williesgirl]

1. Heckovajob, asshole Repukes and their criminal leader. rec'd

[magellan]

2. I wonder how many of those households voted for Bush**

...and deplore "public handouts".

[nilram]

3. and watched "Lifestyles of the Rich and Famous"

as if it would do them (or any of us) any good.

[aquart]

4. And how many of them didn't.

Or are you NOT implying that they deserve to suffer?

Is this how the future looks? People will have to be politically correct to obtain the government services that should be available to EVERY citizen no matter how we vote?

[Amonester]

10. I think you're reading a little too much in it, aquart.

I think it's more like: "Those of them who voted for Bush will probably not vote for McSame, but why is it when they vote Democratic, it's because their Republicans screwed up, and they're looking for help only then?" That's more how I read it.

[magellan]

15. Seeing as gov't services will never be rationed according to vote

...as there's no way to confirm how ANY of us votes, your post is complete histrionic bs.

FYI I was pointing out the usual hypocrisy of Repubs on matters of public handouts, no more, no less.

[Delphinus]

5. And not all that need assistance get it.

Their income, according to the government standards, is too high.

[searchingforlight]

6. I work in Customer Service for a utility company

I am seeing more people struggling to pay their bills and we are very responsive to that making generous arrangements and pointing them to the help available.

I see just as many that have historically not paid. I could show you many accounts where by playing the system (Dr's letters for nebulizers, checks that bounce and they admit they knew the funds weren't there, calling to take over an account where there is a serious long-term delinquency and putting the account in a minor child's name, making arrangement after arrangement without any intent to pay to stop a disconnect) When I do an income review with them they always have Cable TV and a cell phone along with their regular phone.

I see just as many accounts of older citizens who were raised to pay their bills and are probably eating dog food who have never missed a payment. They are proud of their energizing saving lifestyle.

You would not believe how many accounts I see on a daily basis where there is a history of thousands of dollars that are written off in the same person's name. Make no mistake, these abuses are hurting the people who are struggling for the first time to meet their bills.

Each of us can help by making sure that our rights are protected by the Public Service Boards in our areas.

[Delphinus]

7. Thank you for your first-hand account.

I've never even thought of the Public Service Boards - good idea.

When I wrote my thoughts (earlier post), I was thinking of those who eat less than what they should so they could pay their bills. I didn't realize the scams people pulled.

[ForPeace]

12. You have to pay

to terminate your cell phone contract. For a lot of people it's cheaper to keep the phone than buy out the contract. I really think cell phone contracts are predatory with the free phone incentive up front.

[question everything]

16. Right. In a local story, a woman resigned to have her gas being turned off

because she has two mortgages and paying for her son's college.

Her son's college? He can get a job to help pay his expenses. He can apply for a student's loan, he can quit college for a couple of years and work and save.

Only last week, on one of the economy problems shows, someone emphasized for parents not to cash their 401K to pay for college. There are many students loans and, he added, no one will give you a "retirement loan."

Still, this has been a long and cold winter in Minnesota. In the past four months, or so, our bills were around $160 a month. That's a lot and many have taken advantages of the ban on disconnecting, hoping, I guess, for some reprieve.

This is the end of April, we got some snow this past weekend with temp. around freezing..

[soothsayer]

8. deregulation is not our friend

[searchingforlight]

9. Actually my utility is a regulated utility.

[Tandalayo_Scheisskopf]

11. Here in NJ...

First Energy is in this area. Recently, they applied to the BPU for yet another rate increase, this time as much as 20%. We are deregulated here. This was almost a year after their last increase, which was 15%. One of the reasons they cited for the need for an increase was more people needing energy assistance.

Several days after that, they announced that last year, they made the largest profit in the history of the company, $US 1.2 Billion.

They don't even try to be clever any longer.

[Danmel]

13. Defaults on Utility Bills are WAY up

Almost 20% on Long Island. I work for county government and we get calls all the time from people facing cut off from electricity or people seeking assistance with Home Energy- home heating oil is over $3.30 a gallon- people are paying thousands more and it was a mild winter. I have noticed a real uptick in the calls we get for this type of aid. I'm afraid it will get worse before it gets better because county governments revenues are down (lower sales tax revenue when people have no money to spend, less property tax revenue with the foreclosure crisis. I'm looking at a wage freeze, not even a COLA, and there will be real cutbacks. Not pretty at all.

[HockeyMom]

14. I paid about $400 a month last year

for gas heat (KEYSPAN) on LI. I could never have made it without the budget plan spread out over 12 months. It was a real juggling act with that and LIPA.

I shudder to think what it must be like now.

[question everything]

17. $400 a month? That's a lot

I had around $180 a month the last four months, and this is in Minnesota when we had a very long and cold winter - still do.