All Pawtucket All The Time

STATE HOUSE – A legislative commission is studying a plan to prevent utility shutoffs for low-income Rhode Island households through a program that would allow customers to pay a lower rate for power.

The Special Commission to Study a Home Energy Rate Affordability Program was formed as a result of legislation (2009-H 6463) sponsored by Rep. Arthur Handy, who is serving as chairman of the commission.

Representative Handy (D-Dist. 18, Cranston) said he expects the commission will recommend legislation to the General Assembly in early January.

The plan the commission is studying, as currently written, would allow qualified customers – the elderly, the disabled and those with income at or below 150 percent of the federal poverty level ($31,800 for a household of four) – to prevent shutoffs by paying 6 to 8 percent of their income, slightly more than the amount that goes toward utilities in a median-income household. They would pay that amount throughout the year, even in summer. They would be allowed that rate only for a basic level of heat and energy, so they must conserve. If they make these payments for 36 months they also would have remaining back bill debt to be forgiven.

This program would be funded partially through existing programs and through a modest surcharge of $1.40 a month per meter for all residential and small business customers – amounting to $16.80 annually per meter.

The goal is to use available funding to help customers end a cycle of ever-increasing debt, instead of the current policy of using program funds to restore power to those who have been shut off. Currently, most of the funding available goes toward paying enough to get power restored in time for winter. But since customers who are struggling generally end the winter in greater debt to the utility, many then lose power again in the spring as soon as utilities are allowed to perform shutoffs. The system leaves struggling customers in a cycle of growing debt and shutoffs.

Members of the commission, which has met twice since Dec. 1, include Representative Handy, Rep. Joseph S. Almeida (D-Dist. 12, Providence), Rep. Brian C. Newberry (R-Dist. 48, North Smithfield, Burrillville), Rep. Helio Melo (D-Dist. 64, East Providence), and Rep. John A. Savage (R-Dist. 65, East Providence).