Officials mull aid to help people pay their utility bills
By Gargi Chakrabarty, Rocky Mountain News (Contact)
Published July 16, 2008 at 9:05 p.m.
Tim Hussin / The Rocky
Cherise Smith, 27, is one of thousands of Xcel customers in Colorado notified that her power could be shut off because she had fallen behind in paying her bills. She contacted nonprofit Metro CareRing, which helped her with payments and kept the electricity on.
Tim Hussin / The Rocky
Cherise Smith, with daughter, Desiree, 8, by her side, is facing a power shut-off.
Gov. Bill Ritter and lawmakers are discussing how to help the estimated 72,000 Xcel Energy customers projected to have their utilities shut off this year.
Escalating energy prices coupled with steep jumps in food prices and a record number of home foreclosures have strained pocketbooks.
For instance, as of May 4, one of every eight Xcel customers in Colorado - nearly 200,000 households - was 30 days or more behind in paying their utility bills, according to regulatory filings with the Public Utilities Commission. Xcel serves 1.6 million gas and electric customers in the state.
This year's projected shut-offs are 33 percent higher than 2007, said Xcel spokesman Tom Henley.
"Those are high numbers and are very concerning," said Ritter spokesman Evan Dreyer. "Governor Ritter and lawmakers are now starting to look at what strategies we can put in place to, first, make people aware of existing assistance programs and, second, examine whether we need to provide additional dollars to those programs.
"The answer to the second is yes, we do need to, and that's something we are looking at right now."
Former Gov. Bill Owens in December 2003 announced a $10 million relief fund to help low-income Colorado families pay their heating bills after nearly one in five Xcel customers fell one day or more behind on their bills.
Customers who have good credit with Xcel get a reminder notice 33 days after the original due date and a disconnect notice 64 days after the missed due date. Customers with poor credit receive a disconnect notice 31 days after a missed due date.
"The Denver market last year by September set a new record for foreclosures, so some of Xcel's late payments and disconnections could be due to that," said Fred Crowley, an associate research professor at the University of Colorado at Colorado Springs's College of Business and Administration.
"People can't afford not to have food and gas, but they think they can get away deferring utility bills," Crowley said. "The net effect is, a utility sells less gas and electric but still has overheads, so it raises rates for those paying bills to cover its expenses."
Crowley warned the situation could worsen this winter, given the higher price projections for natural gas used to heat homes and generate electricity in Colorado. Energy Outreach Colorado, a Denver nonprofit, estimates that for a typical Xcel customer, the combined natural gas and electric bill for the six winter months beginning Nov. 1 through April 30, 2009, will be $1,223. That is more than double the six- month average of $583 in winter 2002-2003 and nearly 23 percent higher than last winter.
Xcel's Henley said a majority of disconnected customers eventually get reconnected. Last month, 36,000 customers were disconnected, but 85 percent later were reconnected. Of the reconnected customers, 80 percent paid their bills in full, he said.
"As a company, we would be negligent in our business if we were more than happy to disconnect customers rather than get them to pay bills," Henley said. "It is in our interest, our shareholders interest and our customers' interest not to disconnect."
For instance, Theresa Johnson, 51, received a phone call Monday from an Xcel representative seeking to schedule a disconnection. The Montbello resident is between jobs, having lost her position at a Subway restaurant this month, and is waiting to start a new job in the Denver Public Schools in August.
"I asked the Xcel person how much my bill was, and she told me $176 and change," Johnson said. "I couldn't believe it. I work six days a week; I am not even home during the day and have only one air conditioner."
Energy Outreach Colorado is now helping her.
Meanwhile, the Public Utilities Commission on Wednesday asked Xcel to provide information about shut-offs and delinquent customers in a timely manner. The utility had discontinued providing the information publicly in April 2006, after the former commissioners dropped the requirement.
"I firmly believe that it's critically important to get as much information as we possibly can on how utility customers are able to pay their bills, particularly low-income customers," said Energy Outreach Executive Director Skip Arnold, "and this is the kind of data needed to come up with good public policy."
chakrabartyg@RockyMountainNews.com or 303-954-2976
By the numbers
1.6 million: Total gas and electric Xcel customers in Colorado
72,000 estimated Xcel shut-offs this year
36,000 shut-offs in June; 85 percent have been reconnected
12 percent: Xcel customers on May 4 who were past due by more than 30 days on bills
$78.89 average electric bill in July
$53.16 Average electric bill in July 2003
* If you need assistance with your energy bill during the time LEAP is closed, call 1-866-HEAT-HELP (1-866-432-8435).
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July 16, 2008
11:52 p.m.
Suggest removal
windbourne writes:
Do NOT pay the utility bill. As long as that continues, ppl will not take care fo their property. Instead, offer assistence to add insulation, offer CFLs for incandescent lights, OR even offer up to move these ppl off gas/electric to geo-thermal heat pumps (which use a fraction of the electricity).
July 17, 2008
5:40 a.m.
Suggest removal
liquidone writes:
This is the perfect Democrat plan! Keep energy costs high by oposing practical energy solutions such as additional drilling in ANWR and the OCS. Offer subsidies for inferior Ethanol and run up food prices.
Then, when the victims can't pay their utility bills or buy food offer them AID and get press for the wonderful things you are doing for the people.
What a scam! WAKE UP EVERYONE.
July 17, 2008
5:46 a.m.
Suggest removal
Jim_in_Erie writes:
Before ANYONE gets a dime of taxpayer funded 'assistance', they should be required to shut off the cable/satellite service, get the least costly phone service, sell off their xBox, and make every other cost cutting move they can.
Not that our wonderful Democratic Governor or Legislature would even consider putting people in "need" on a budget.
Why THAT would be forcing people to be somewhat responsible for their own lives, not dependent upon some disturbed notion of "fair".
July 17, 2008
6:15 a.m.
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me2 writes:
Oh right, lets drill ANWAR so we can have more electricity.
July 17, 2008
6:15 a.m.
Suggest removal
roger44 writes:
Agree with Jim, watched a Guy I worked with on food stamps at walmart choosing $100 PlayStation games so his wife wouldn't get bored at home. Have several kids...more controls on welfare needed, Guy and wife smoke, buys guns, but gotta have those food stamps. People want help? Go in and find out how much they spend on cable, Internet, phone, video games etc. and show them if they cut back they could pay the electric bill, then you got something.
July 17, 2008
6:28 a.m.
Suggest removal
vudumom writes:
I knew of relatives that were getting leap assistance with their utilities. The idiots were keeping their thermostat in the winter at 75 degrees and above so their bird wouldn't get cold. After seeing that I never donated to leap again. These idiots got their bills paid all the time. They had cell phones, cable high speed, sattelite TV, big screen TV's, 2 new cars, new computers, bought alsmost every DVD that came out every month,play station, many video games, yet they couldn't manage to pay their utilities.
They would run up over a $250 utility bill that was twice the amount of mine and I have a 4 bedroom house. They didn't care. They just ran up the bill because they knew they could find some agency or charity to pay the bill. One of them had a SS disability, get out of paying bills card.
I realize that not all people who need help are like the above mentioned people. Once you see people like that scamming the system it ruins it for the rest of people who are truly in need. You would think the LEAP program would try to do something about these people , but no. They keep paying the bills they run up.
Some type of system needs to be in place to prevent people who misuse the system from getting funds over and over. It just not this one instance. This girl on SS disability is not disabled in any way shape or form and her entire family are doing the same thing. White trash in it's finest form.
July 17, 2008
6:56 a.m.
Suggest removal
LOUIE writes:
I don't mind reaching out and helping the elderly, handicapped, and those who truly need help. However, there are many in America that are just plain bums. People who self-inflict thier own troubles, beat the system with disabilities that are less than disabling, people who irresponsibly have multiple children without regard for the welfare of thier children, and everyday you can see a multitude of these type people living off the hard work of the responsible. Time has come for those who are capable to carry thier own weight. Mental disabilities from extensive drug use, Attention Deficit Disorder, there are a host of questionable disabilities that need to be re-evaluated. We just had a bipolar millionaire die, doesn't look like bipolar stopped him from achieving the American dream, refusing his medication killed him. Give everyone socialized medicine and youll see a rise in disabilities; I am willing to bet with greater access comes greater abuse. I could have gotten disability assistance if I would have pursued that course, but it doesn't allow me the life I lead today. We have raised entire generations on welfare, disabilities, affirmative action, and government handouts, nice to know America still has her proud to pay thier bills. What's really amazing is they pass thier ways unto thier children, which to many is a form of abuse. Make people help themselves, if they are able to work, make them earn thier way. Life is always a struggle, those that truly need assistance are being robbed by many young people and ablebodied people who just lay back and milk the kindness of others. You want to drink, drug, and abuse yourself, have 6-7 children when you can feed yourself, fine, the responsible should not have to pay. I had five children to feed as an excon, every selfmade strike in the world was of my own chosing, I did not recieve government assistance. I had to earn my own way because I wanted better than somebody's handout. My kids have kids, and they better take care of them. If they go asking for handouts, I failed as a parent. America has a whole group of people, of all nationalities and races, that have been taught the government system of handouts instead of being taught to be responsible for thier own lives. Socializing more aspects of our society will not help these people, it will only create future generations of these abusive people. I grew up on the streets, struggled to support my large brood, and didn't ask for handouts to do it. I think there are more who can benifit in caracter from the struggle, maybe they will appreciate what America has to offer other than a handout. We didn't become the richest nation on earth raising and teaching future generations to live on handouts.
July 17, 2008
6:59 a.m.
Suggest removal
LOUIE writes:
There is a reason they ask you not to feed the bears...
July 17, 2008
7:03 a.m.
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tiero writes:
It's not the taxpayer's problem. Pay your bill or live in the dark. Xcel energy is trying to make a profit just like any other business and employs many people who are surviving. We have one of the lowest utility bills in ther nation. The biggest problem in this country is the quality of immigrants who can't make it in the country they come from and are trying to make it in this country. No more hand outs Jose as the taxpayers are tired of raising your peasant family. I suppose there is going to be more crime. MAKE MY DAY.
July 17, 2008
7:19 a.m.
Suggest removal
jacka writes:
NEE = 400 Vestas jobs, Xcel building the NEE on our dimes and Theresa's $176 bill.
"I couldn't believe it. I work six days a week; I am not even home during the day and have only one air conditioner."
July 17, 2008
7:31 a.m.
Suggest removal
Buckwheat writes:
Hard to seperate the seedy from the truly needy. That's the riff here. Unfortunately their are always going to be those that take advantage of the system. I would be glad to help anyone, especially the elderly and disabled. Everyone (most) needs a hand up at least once in their life (been there, done that).
July 17, 2008
9:13 a.m.
Suggest removal
youngman writes:
Were do we sign up.......its a tax rebate..I'll take it
July 17, 2008
9:58 a.m.
Suggest removal
Dinty writes:
OK. If the benevolent Democrats are going to pay for the "poor" folks' utility bills, could we at least require them to give up their basic cable TV service? Or, is that now considered part of their primal needs?
July 17, 2008
11 a.m.
Suggest removal
Brockage writes:
Deadbeats Unite -- Ritter and the Dems want to grease your palms with taxpayer money. No need to rely on religious or other private charities - nah, not when taxpayer money is so abundant and giving it away makes politicians feel so creamy warm inside.
July 17, 2008
12:09 p.m.
Suggest removal
pak writes:
Ritter's new energy economy increases expensive intermittent renewables that have to be backed up with dispatchable gas plants. As a result gas prices are going to sky rocket. Cheap reliable, base load coal is the answer.
The Democrats like the idea of "robbing Peter to pay Paul cause you can then count on Paul's vote!"
COAL!
July 17, 2008
12:47 p.m.
Suggest removal
P_Denver writes:
Obama's Solutions:
#1 - Tiered Payment System --- The richer you are, the more you pay (because you can afford to). The poor will pay nothing.
#2 - Socialized Energy Plan --- Nationalize all the energy providers (right after he nationalizes the oil companies) and have the government control the price.
He will probably select #1, because a poor person's vote counts just as much as a rich person's. Since he would upset the rich (fewer of them) and "buy" the poor people's votes (LOTS of them!) he will come out ahead.
Good politics!
July 17, 2008
3:40 p.m.
Suggest removal
sawzallartist writes:
You guys are funny...in a sad way
The poor doesn't vote....old scared people do.
July 22, 2008
10 a.m.
Suggest removal
Citizen21 writes:
Have you checked out why Xcel Energy, a Fortune 500 company with increasing profits, needs a rate hike? It’s not to cover costs – it’s to continue to raise profits which they have done the past few years. Just take a look at their financials.
In 2007, Xcel Energy Inc’s third-quarter net income rose 13 percent to $252 million, or 58 cents per share, from $224 million, or 53 cents per share, in the year-ago period. Most of the increase in earnings was from a Colorado electricity rate hike that added $31 million to the utility's coffers for the quarter, CFO Ben Fowke said.