Don't Overlook Utility Bill Payment Aid Programs
Kathy Kristof

Having trouble keeping the lights on? You have plenty of company.

Disconnection rates for all types of utilities have soared as an increasing number of consumers struggle with unemployment and a moribund economy.

But almost all the nation's utility companies -- that's gas, electric and phones -- sponsor programs for low-income consumers that could cut rates by 20 percent or more. They also provide so-called "crisis grants" to cover at least a portion of past-due bills.

You don't have to be destitute either. A temporary job loss can qualify you for some relief.

"Shut-offs are a problem that can be easily prevented," said Mindy Spatt, communications director of The Utility Reform Network (TURN), a San Francisco advocacy group. "There are programs for low-income consumers that are funded by all ratepayers. You have to ask about them."

Sadly, many consumers appear to be unaware that they can get help. A recent report by the California Division of Ratepayer Advocates estimated that some 5.1 million Californians qualify for low-income assistance programs, but just 4.3 million have applied.

Southern California Edison recently surveyed its customers and estimated that some 200,000 qualifying customers have failed to apply for assistance.

Ryan Lippe, communications director for the Office of the Ohio Consumer Counsel, says the problem affects people nationwide.

"In today's tough economic times, we are talking about a whole new category of consumers who may never have thought they'd be in the precarious position of losing vital heat and electric systems," Lippe said.

"It's paramount that consumers understand the helping hands that are available," he said.

The challenge is finding those lifelines. Although many programs are funded nationally, the bulk are administered locally, so a little more sleuthing is required.

If you need help paying your phone bill, there is a national directory at Lifeline Across America that can tell you what programs are available and how to contact them.

Generally speaking, these programs fall into two categories: discounts on monthly phone charges for your primary line (even if that line is a cell phone), and a subsidy to get connected to service for those who don't have a phone.

When it comes to electric and gas programs, 40 states (including California) have state-sponsored consumer advocates for utility customers. These state offices can be the first stop for those needing help with all types of utility bills.

A directory of the advocate offices is available through the National Assn. of State Utility Consumer Advocates.

The federal government also sponsors the Low-Income Home Energy Assistance Program (LIHEAP), which helps income-qualified individuals pay heat and electric bills.

The difficulty for consumers is that the funds are distributed through local community organizations and government agencies that are not always easy to find.

However, utilities themselves are generally familiar with all of the options affecting their customers. Most provide information on their Websites and through consumer help lines.

But you have to be proactive and call them to get the assistance. Spatt says one of the frustrations of consumer advocates working in this area is that utility companies don't automatically offer help to people receiving disconnection notices.

Southern California Edison and Southern California Gas sponsor a litany of programs for their customers. Similar programs are offered statewide and nationwide, though the names and income limits can vary. They are:

-- California Alternate Rate for Energy, or CARE, provides discounts of 20 percent or more for income-qualifying customers on both gas and electric bills. The income limits for programs like CARE typically are tied to the federal poverty guidelines or to average incomes in your area. In this case, a single ratepayer would qualify if he or she earns up to $30,500 annually; a family of four would qualify with up to $43,200 in income.

-- The Family Electric Rate Assistance, or FERA, program provides even greater discounts to large families that use substantial amounts of electricity. Your income must fall below 250 percent of the federal poverty guidelines. Notably, 23,271 Edison customers are on the program, but the utility estimates that as many as 230,000 qualify.

-- The Energy Assistance Fund helps pay past-due bills for customers. Although EAF is California-specific, there are similar programs in every state, experts said. Moreover, some of them are far more generous than the California plan, which provides grants of just $100 a year to pay electric and gas bills.

Edison and Southern California Gas also offer payment plans that can spread out the pain of high-cost months. They also offer conservation programs to upper- and middle-income consumers.

Those include sending an energy "auditor" to your home, with lots of free goodies, including fluorescent light bulbs and water-saving valves for your faucets and shower. These visits can often result in considerable monthly savings.

In addition, there are "medical baseline" programs for people who have energy-intensive medical equipment, and a variety of programs operated by individual utilities.

"The important thing is for people to understand that there is help available," Lippe said. "There are an awful lot of disconnections going on. We find that very disturbing."