Unpaid utility bills soar as economy sags

[phantom power]

CHICAGO — Hundreds of thousands of utility customers are at risk of disconnections as the sagging economy drives up the number of past-due home heating bills and the amounts owed, utility companies in cold-weather states say.

Xcel Energy says 17%-19% of its 1.1 million Minnesota customers and its 280,000 Wisconsin customers are in arrears. That's about the same as a year ago, but balances owed are up 10% in Minnesota and up 20% in Wisconsin, says Pat Boland, Xcel's credit policy manager.

Xcel disconnects 600-650 customers daily, he says. "Obviously the economy is playing a very big role in the disposable income that folks have," Boland says. Another factor: Cold weather added 7%-8% to this year's bills.

The extent of the problem is becoming apparent now because most states in the Midwest and Northeast have moratoriums on disconnecting utilities in winter months. Those restrictions typically end March 31 or April 15.

http://www.usatoday.com/money/industries/energy/2008-04-24-shutoff_N.htm

[gateley]

1. What can people do? They don't have the money! nt

[Hydra]

2. Guilty

But only because the local utility help program told us we weren't eligible this year because according to them, we made too much money. Could have fooled me!

[Warpy]

3. That's where the rebate checks are going

They're all going to catch up on bills, whether delinquent utility bills or credit card bills. Anything left over is going into the bank and will go to the same places the month after the check arrives.

Anybody who thinks the people out there are going to squander those stimulus checks on big screen TV sets at big box stores is NUTS.

Of course, the stupid people running this country will then crow that it does no good to give ordinary people money because they never spend it where they should and that only more tax cuts to the extremely rich will ever help this economy.

We need WAGES, not drop in the bucket handouts. Until we get a government that realizes this and takes steps to kill the Golden Age to resurrect the Golden Goose, this economy will continue to be in a world of suck.

[amandabeech]

8. We definitely need wages.

But I think that both our Presidential candidates have written off manufacturing and telephone service jobs.

What they plan to replace those jobs with, I don't know.

[depakid]

4. I've long thought that electrical and natural gas utilities ought base rates on a progressive scale

Admittedly, I know next to nothing about residential rating structures. Nevertheless, it seems to me that it should take marginal utility, and price lower kilowatt hours differently per unit that it prices higher usage.

People who crank the heat and air conditioning, for example can certainly do so- but they'll have to pay a much higher premium, whereas people who use less are afforded significantly lower rates.

Won't solve the problems for people nearing bankruptcy, but it seems to me that it would encourage conservation and help some folks out who are on the periphery.

[hogwyld]

5. That's a fantastic idea

As a McMansion will consume a lot more energy than a modest home or an apartment.

[phantom power]

6. our utility has started to do this (SRP)

[Kolesar]

7. Which is the opposite of having a "minimum monthly charge"

We use so little gas in the summer for cooking and heating hot water that we get charged a minimum usage fee.

That is, obviously, a disincentive for conservation.