Regulators Okay Community-Based Pilot to Reduce Utility Bill Debt

California’s investor-owned energy utilities will launch a pilot project with community-based organizations to develop a model management program to help customers in arrears square away their utility bills.

The pilot program, authorized by the California Public Utilities Commission April 7 on a unanimous vote, aims to help 12,000 customers in geographically targeted areas where the pandemic caused a loss of household income due to business shutdowns.

“Community-based organizations are trusted organizations and well-positioned to help customers overcome barriers to managing their utility energy bills,” said Commissioner Genevieve Shiroma.

More than 1.1 million energy utility customers got behind on their bills due to the pandemic, resulting in a $1.8 billion loss of revenue for the investor-owned utilities through the end of 2021, according to the CPUC. To help financially-strapped customers, the state’s current 2021-22 budget set up the California Arrearage Payment Program, which is reimbursing utilities $686 million to cover some of the pandemic-related arrearages.

The program is reducing the average customer arrearage by 38%, or $612.

However, that still leaves a gap of more than $1.1 billion of pandemic-related arrearages.

Commissioner John Reynolds applauded the pilot’s “focused approach to helping customers” long term. But he said it also should delve into what more is needed to help struggling ratepayers, including filling in gaps in existing programs.

Under the CPUC-approved pilot program, utilities are to work with community-based organizations in targeted areas to develop a model case management program through which customers in arrears will pay off the remainder of their energy utility bills after the application of COVID relief money at the end of last month.

Arrearage maps

The Investor-owned utilities also are directed to develop a statewide database and maps that track the location of disconnections for unpaid utility bills.

The pilot program authorized today is to include a budget, payment structure, criteria to target communities, and evaluation methods.

The community-based groups would likely seek to help program enrollees access a variety of existing energy assistance programs to reduce their bills, such as California Alternate Rates for Energy, Family Electric Rate Assistance, and Energy Savings Assistance, and many others.