This week, senators of the state began work on restoring the law, which deprived public utility companies in cutting off services for clients in winter, regardless of their ability to pay.
The Act also prevented public utility companies to turn off services on Fridays and weekends and required many notifications before the client’s inlaid tools could be disconnected.
Earlier regulations stepped down in December 2024 because the legislators they could not agree what to do with the 20-year law section, known as chapter 14which required re -authorization every 10 years to stay defense. The controlling chamber and controlled by Republican Senate could not achieve a contract on how to modify it.
The heart of the dispute is that some democrats of the house, as well as consumer supporters, say, despite the safety of Chapter 14 in the freezing period between December and March, the law was too simple to public utilities to cancel services for low content monthly accounts for the rest of the year.
They want to operate the re -authorization of the right to adopt stronger consumer protection.
“Chapter 14 was first transferred to the clear purpose of achieving equity by eliminating opportunities for customers who have funds to pay payments,” said Elizabeth Marx, executive director of Pennsylvania Utility Law Project. “What happened in practice is hundreds of thousands of households with lower income, and not because they are able to pay, but because they are unable to pay.”
When the customer does not make a payment, it usually concludes an agreement with his public utility company, which allows them to pay off their debts on monthly accounts. If this fails, they can go to Public Utility Commission and organize a payment plan.
But Chapter 14, first adopted in 2004, obtained part of the Public Commission’s ability to work with low and medium income clients to develop these plans.
Before the entry into force of the law, the public utility committee could create an individualized payment plan for low -income families, based on their income, debts and the ability to pay. Chapter 14 has created immovable guidelines for these payment plans. (Last year, the guidelines included six -month plans for customers, which is 300% of the federal level of poverty to five -year plans for customers, which is 150% of the federal level of poverty or less).
In addition, the law allows public utility companies to require security deposits when their customers are behind, which they have to pay in addition to monthly bills and payment plans. There are also delays, and if their service has already been disconnected, re -connection fees. Amendment of the 2014 law made some clients – those whose income was below 150% of the federal level of poverty – exempt from security deposits.
According to Marx, immovable requirements for payment plans and the ability of public utilities to charge additional fees for customers in addition to monthly bills are particularly hard for some low -income households.
“At the moment we have people with fixed income that are cited from the gate several hundred dollars,” said Marx. “This is not a feasible solution.”
Chapter 14 also presented some consumer security, creating rules when a public company can cut off the service. In addition to the moratorium, in the winter months of disconnection, services are not allowed on Fridays and weekends. And customers in the face of crisis situations – for example, when they need electricity to supply the necessary medical equipment – they can obtain medical notes to dismiss them for 30 days, which can be extended at the end of this period. And people who have survived domestic violence can create a copy of each protective order that must receive relief similarly.
When Chapter 14 expired last year, Pennsylvania Public Utility Commission effectively He restored itNoticing that they wanted to give the legislators time to debate. In this session, legislators in the Chamber and Senate will have to compromise how and whether it should be changed to codify these safeguards back in the law.
“Apparently they want to authorize it again,” said Stephen Defrank chairman of PUC. “We will keep this table until they decide what they want to do.”
Senator Lisa Boscola (D-Northampton) was the first to introduce the provisions offering the proposal of this session. It was a slightly modified version of the act, which was introduced by the last session, which largely left Chapter 14, as it is. He was undertaken on Monday at the Senate Commission.
The Act would extend the length of repayment plans offered to low -income families, which are behind the media bills. However, it did not ensure the flexibility that supporters or democrats from home would like, and did not prohibit fees and deposits for low -income clients.
Defrank said that he supports extensions for customers who are lagging behind.
“The best way to pay the bill is to determine the payment,” said Defrank.
But supporters say that the Senate Act is not going far enough.
“There are changes there,” said Joline Price, a lawyer at the Energy Unit at the Legal Services in Philadelphia. “But this is a really lost opportunity to protect consumers.”
Bill Boscoli He was the first shot in the longer battle.
“The house will fight, but, you know, let’s see where it is going,” said Boscola during the Monday meeting of the committee.
Supporters such as Marx and Price prefer the version presented by House Democrats last year, but ultimately rejected by the Senate.
This version He introduced numerous changes in Chapter 14. This would prohibit public utilities to charge additional fees or demanding low -income customer security deposits, who encounter public sections because they were behind bills. He would also prohibit the re -connection fee for low -income households. In addition, PUC would give criminals more time to make sure on their previous accounts, allowed PUC to limit monthly payments to 20% of the average account and extended the length of payment.
Senator Patrick Stefano (R-Fayette), chairman of the Consumer Protection Committee and the Professional License Committee, said that the bill is not ancient. He said that this would provide protection for low -income families.
“Currently, 5% of the customer base needs these programs, and 95% pay for it,” said Stefano. “What he tried to negotiate at home to come back to us, I could not agree with it. This changed to 55% of the paying rate for 45%. “
He added that he was worried about expanding access to assist for low -income families, he can effectively encourage people who could pay on time.
“I want to make sure that those who need them use available programs, and those who can pay,” said Stefano. He cited conversations that he said with people who pay telephone bills, but not online bills because they believe that their mobile service providers cut them off, but their electric companies do not.
His comments reflected the fears expressed by the senators last year That the version of the House Act would allow “bad actors” who consciously refused to pay media bills, enabling them to avoid fees and deposits for the protection of public utilities.
But supporters say that increasing access to repayment plans for people who remain behind bills can ultimately assist any public utility customer.
When the household stops paying bills completely and leaves the state or area of services, this debt becomes uncollectable. Fortalized debt is ultimately transferred to all paying customers with this usability. Payment program that allows low -income families to maintain their services connected And slowly pay back when they are behind, they can assist avoid this result. Especially with the augment in energy prices, along with the number of households to disconnect tools.
Boscola, whose act more reflected the previous law, said on Monday that chapter protection 14 is “Necessary to stabilize the utility costs for hard -working families and seniors in relation to fixed income … With a rapid increase in energy prices and the growing unpaid media bills, the need for action is more urgent than ever. “
In the meantime, Marx from Pennsylvania Utility Law Project claims that rising energy prices have led to more utility clients in Pennsylvania. In 2024, according to testimonies, she provided the legislator, 352,533 households in Pennsylvania experienced involuntary gas or electric sections, which is an augment of 15% compared to the Pennsylvania utility Law project.
“There are significant changes that should be made,” said Marx. “We are satisfied and we are waiting for cooperation with both chambers to create reforms based on prevention that will remedy the rising costs of utility and help families catch up before they stay behind.”
She suggested that legislators think about what they want from the law. If their goal is to reduce the number of people who stop or are not able to completely pay media bills, the best way to cooperate with them.
Price added that she would like to focus more on catching families before they stayed behind. She said that this could mean a requirement for public utilities to collect household income data for the first time to check if they qualify for assist. He often meets customers who qualified for existing customer assistance programs or could open the security deposit, but were not aware.
“There are things that we can do to demand from the media, to make more so that customers enroll in these programs early so that they do not end down the debt,” said Price.
She added “We don’t have to act under the old law. We have to think about what we want to move forward. “
