Editor’s Note: The article below shows the human face of regulatory burdens on industry. As as the author explains “Utility costs continue to increase substantially in all locations for a score of reasons, she said. Requirements for cybersecurity systems and infrastructure upgrades are on that list, as well as compliance with federal and state environmental quality mandates.”
From: News-PressNOW.com (St. Joesph, MO)
By Ray Scherer St. Joseph News-Press
An Amazonia, Mo., couple sat patiently in an agency waiting room Wednesday afternoon, waiting to learn if their application for energy assistance was approved.
The man and wife submitted paperwork before Nov. 1. Despite winter’s approach, they count themselves as blessed with their utilities still intact. There is a definite worry that the cold months ahead could steamroll their personal economy, along with the comfort and ease of their household. Yet they remain positive and reflective on their plight.
“I guess things are kind of rough everywhere,” the man said. “There are people in worse shape than us.”
His wife said they were simply “trying to stay warm.” A propane tank on the property had measured down to about 12 percent of capacity as of the last reading. Levels beneath 10 percent become a critical concern.
“If your pipes burst, you’re going to be in trouble,” she said.
It’s just one vignette among the familiar stories staff at the Community Action Partnership of Greater St. Joseph hear from clients these days, as high utility costs proliferate and rate cases are an ever-present entity.
Needing help
“Folks are coming in” to apply for the state’s Low-Income Home Energy Assistance Program, said Gina Smith, marketing/community relations associate for CAP. LIHEAP, the acronym by which the program is known, seeks to provide financial assistance to help Missourians pay heating and electric bills from October through March. Gas is the primary heat source underwritten by the program, with electricity listed as the secondary source taken into consideration with the applications.
By midweek, Ms. Smith said the office had received and processed 1,148 applications extending back to Oct. 1. The disabled and elderly were able to apply starting that month, she said, while the general public was able to begin applying in November. The office serves low-income residents in Andrew, Buchanan, Clinton and DeKalb counties.
“We have an increase of people coming in with a shut-off or a shut-off notice,” she added. Those applicants take priority because of their circumstances. A total of 565 cases were pending last week. Ms. Smith termed the applications as likely bearing a slight increase, yet fairly average in comparison with past seasons.
The Missouri Cold Weather Rule is in effect Nov. 1 through March 31 and prohibits disconnection of utility service when the temperature is forecast to drop below 32 degrees for the following 24-hour period. Utilities also must comply with a mailed notification before proposing a disconnection, inform customers about possible financial help and seek to spread out payments over 12 months.
CAP has about $506,000 in LIHEAP funds to distribute, but also relies on relationships with such organizations as Catholic Charities to help consumers. Applicants are urged to bring their application and documents to their office that include Social Security cards for all members of the household, proof of last month’s income and the last month’s energy bill.
Offering assistance
All three of St. Joseph’s primary utilities offer assistance to clients who may have difficulty paying bills. When it filed a general rate case in September, Missouri Gas Energy proposed new programs with incentives it said aim to ensure customers stay connected all year. EnergyWise — a program run by the company’s new parent, Laclede Gas Company — assists with payment of monthly gas bills and financing energy-efficient home appliances.
In September, the company filed for a rate increase now pending before the Missouri Public Service Commission. A local public hearing for St. Joseph has been proposed for Feb. 25. Officials said the filing meets a legislative requirement and is necessary to continue recovering funds invested in an upgrade of its natural gas pipeline network. It may take up to 11 months for the commission to resolve the case and will therefore have no relevance for the current heating season.
If the request is approved in full, an average customer would see a $2.33-per-month net increase in their bill. According to MGE, the rates would provide net additional revenues of $17 million. The case pertains to the 40 percent of a typical bill that covers gas delivery and upgrades to pipelines. The remainder of the bill, which covers the gas cost itself, is not impacted by the filing.
The PSC granted a 15 percent increase to Missouri American Water in February 2012, after the company had filed for a 17 percent hike. The figures are based on a customer using 4,500 gallons of water per month. Officials based the request largely on investments made in St. Joseph’s water system. The PSC approved a 3.4 percent hike for Missouri American in 2010.
“Currently we do not have any preparations under way for a rate case,” said Christie Barnhart, the utility’s external affairs manager. “I cannot speak to what the next couple of years hold. We file a case when there is a significant change in the cost to provide water service.”
Costs increase
Infrastructure investments, fuel and power costs, and other factors help influence the pursuit of rate hikes, Ms. Barnhart said. Sewer costs formerly had been included on Missouri American bills, but were discontinued by the utility earlier this year when the city of St. Joseph took over that task.
If arrangements can’t be made with the company, an H2O Help to Others emergency assistance program is available through a partnership with CAP. The program is supported by contributions from Missouri American and voluntary donations by customers.
Kansas City Power & Light also offers financial assistance for its customers, said spokeswoman Katie McDonald. In its case, most bills are typically lower in the winter and tend to climb during the summer due to use of air conditioning.
A Cold Weather Program offered in conjunction with the state rule provides a 12-month payment plan for participants and is based on eligibility.
“We don’t want to be disconnecting people during the cold winters,” Ms. McDonald said of the program’s intent. “We reach out to them several different times before they would ever get disconnected.”
It’s better for someone who has fallen behind in paying the utility to make contact before bills become too high, she said.
Utility costs continue to increase substantially in all locations for a score of reasons, she said. Requirements for cybersecurity systems and infrastructure upgrades are on that list, as well as compliance with federal and state environmental quality mandates.
Leave a Reply