With the summer sun’s punishing record-high temperatures beating down hard across the country, driving down air conditioner dials and raising utility bills in the process to highs rarely seen given the extended Covid-19 shutdown, states around the country were feeling the same heat. Thankfully, the CARES ACT came to the rescue with $900 million in emergency LIHEAP funding, arriving just in time as CNBC broke the unwelcome news at the end of June that “with millions of Americans still at home, about 1 in 3 people nationwide are expected to see their utility bills go up by at least 10% this summer. It’s worth noting that the expected 10% increase doesn’t even take into account the electricity bill surge that typically happens in summer due to rising temperatures.”
Forbes Magazine, underscoring just how dangerous the situation was for economic distressed communities already battling the impact of the Coronavirus shutdown, reported that “For many Americans, the timing could not be worse. America’s public spaces and offices are still mostly closed due to the COVID-19 pandemic, depriving Americans of cool places of refuge such as shopping malls and movie theaters, and instead forcing them to crank up air-conditioning units inside their homes. For low-income families and the 11.1% of the workforce that is unemployed, air-conditioning will either be a luxury they can’t afford or a burden that pushes them closer to financial ruin… The Department of Energy forecast a week ago that the unusually hot summer could increase energy bills by 25% for as many as 50 million Americans, but if the heat-wave lasts as long as many forecasters now anticipate that figure could climb higher.”
With heat-related deaths – especially among children and the elderly in economically-distressed communities and homes – were at the top of the priority list for many cities around the country, as Philadelphia Magazine highlighted its city’s plight that “Thousands of Philadelphians have already lost their jobs due to the virus, now, in what forecasters say will be an extremely hot summer, many are at risk of having their electricity shut off. This has the makings of a budding crisis: There are currently more than 125,000 PECO customers in Southeastern Pennsylvania, and nearly 48,000 PGW gas customers in Philadelphia, who are behind on their bills and whose accounts are subject to termination…The challenge, under the current circumstances, is that the city’s usual plan is essentially unworkable. Neighbor check-ins and closed-door cooling centers aren’t feasible in the middle of a pandemic, particularly when the group most susceptible to heat-related death — the elderly — is the same group that is most at risk of death from the coronavirus…There are resources for low-income utilities customers, including the federal LIHEAP program, which had $173 million in benefits available across the state this fiscal year and received an additional $35 million in funding from the CARES Act.”
Acting fast to get funds out and into the hands of constituents, in struggling cities like Chicago, Mayor Lightfoot rolled out a signature Chicago Utility Billing Relief program, announcing that “the Chicago Utility Billing Relief Program represents our latest step in bringing long overdue financial support to residents who have struggled with their bills, forcing them to choose between paying for their water and other essentials, and in many cases succumb to debilitating debt. We can no longer afford to hold back their potential or ours. Thanks to this program, Chicago’s families and communities will now have a path forward towards compliance on payments, as well as the opportunity for total debt forgiveness, helping us build a Chicago that is more equitable, more inclusive, and more hopeful for generations to come.”
In elaborating on LIHEAP’s key role as a streamlining catalyst for putting residents in touch with relief and the corresponding results that teamwork was fast producing, the Mayor’s Office reported that “in late April, the City rolled out a soft launch of the Chicago UBR program, which focused specifically on residents that are already enrolled in the LIHEAP program. Over the past two months, the City has enrolled 3,315 residents into the UBR program after sending out communications to nearly 8,000 homeowners. Chicagoans already enrolled in the program are eligible to have $2.9 million in debt forgiven if they remain compliant with payments for the next calendar year. To execute this successful soft launch, the City worked with CEDA to create a call center to service residents, send targeted mailings to residents and identify partner intake organizations to help residents with questions to get enrolled in the program.”
Next door, Duke Energy Indiana was working overtime to let any concerned customers know they weren’t at risk of having the electric shut off any time soon, with company president Stan Pinegaracknowledging the reality that with "so many of our customers are facing unprecedented adversity during this pandemic. We want to be thoughtful and provide extended payment options to avoid power interruptions.” Echoing the utility’s commitment, Marion Byndon, general manager for customer service offered the helping hand that “if you are facing a financial hardship, we are here to help. Our customer contact specialists are prepared to support our customers through these challenging times and provide manageable solutions so customers can keep their lights on."
For many, this additional allotment of funding would only keep the lights on for so long after months of unpaid utility bills had piled up from the Winter heating season and Spring Coronavirus shutdown, utilities in states like New Jersey were taking steps of their own to extend state-mandated moratoriums on shut-offs, sharing the welcome news with customers that “as we move forward together, we want to assure our customers and the communities we serve that South Jersey Gas remains committed to providing safe, reliable, affordable service. Our teams remain hard at work delivering the exceptional customer experience you deserve, from the field to the phones, and beyond, and we intend to continue working to help our customers navigate this challenging time while maintaining their gas service.”
Down South, Florida Today profiled Kindergarten teacher and mother of 3 Elizabeth Corwin, still employed at a private academic academy but underwater with her bills due to her husband’s being out of work, found herself turning to food banks and looking for utility assistance, a challenge due to demand from millions of fellow struggling Floridians as she confirmed that “we are trying to get assistance from the county but its difficult with my working hours and how much paperwork they need. I know so many people need help, but sometimes it seems impossible.” In a small ray of hope, within the same profile, for Mrs. Corwin and other working families like hers, the Florida Dept. of Economic Opportunity announced at the top of July that “we will be receiving an additional allocation of approximately $600,000 to support LIHEAP.”
Deeper South in New Orleans, the City Council worked fast to provide a helping hand to the local community, sharing the welcome headline that through the City Council Cares Program, residents in need could receive an additional $400 in assistance toward their energy bills, as David Ellis, president and CEO of Entergy New Orleans, reasoned this was a necessary extra measure of support for the city’s people because “we are facing unprecedented challenges as a result of the COVID-19 pandemic. As New Orleans is working to safely reopen and to restoring the local economy, we must do what we can to support our customers.”
Reporting by J.B.
Sources:
https://www.phillymag.com/news/2020/06/25/philadelphia-summer-utilities-coronavirus/