Oct 8 - McClatchy-Tribune Regional News - Brad Talbutt The Idaho Statesman, Boise

More Idahoans are struggling to pay rising utility bills as increasing power costs and declining economic fortunes collide to create harder times as winter nears.

Idaho Power Co. has already written off $2 million in uncollectible power bills, an increase of 46 percent over last year, spokesman Russ Jones said Tuesday.

A recent Associated Press survey found that utility shutoffs because of nonpayment are 17 to 20 percent higher than last year in some parts of the country. Meanwhile, the U.S. Energy Department says natural gas users can expect to pay $150 more to heat their homes through the winter than they did last year, about a 22 percent increase.

Intermountain Gas Co. raised its rates Oct. 1. For residential customers who use natural gas for space and water heating, the increase is about $12.30 per month, or about 18 percent. Idaho Power has asked the PUC for a 6.3 percent rate increase, or about $4 a month for residential customers. The request follows a 4.7 percent increase for residential customers that went into effect in March.

"It is really heartbreaking," said Mary Chant, executive director of the Community Action Partnership Association of Idaho. "The lowest-income earners are really vulnerable, but everybody is being affected."

Lower-income Idahoans were already struggling to keep the heat on in the winter, Chant said.

"The alarming thing is now we are seeing people now whose incomes are well above the poverty level who are having trouble," she said.

The Idaho Public Utilities Commission says utility service cannot be turned off for nonpayment of bills in households including children or elderly or infirm persons during the months of December through February or at any time if doing so will cause a medical emergency. However, consumers in that situation must work out a winter payment plan with the utility and pay off the outstanding balance or negotiate a new agreement on or after April 1.

Chant's association represents agencies that provide food, health and financial help for Idahoans threatened with poverty.

She says many low-income families are hit doubly hard because they live in older, less energy-efficient homes. "It is going to be less efficient to heat, and cost them even more to have a lower income," she said. "And if they have trouble with utilities, you know they are struggling to pay for food, health care and transportation."

Costs are increasing for producers. Much of the heating oil and gas for this winter was purchased at high prices earlier this year.

While Idaho Power has already seen a spike in late payments, Intermountain Gas says its numbers haven't changed since last year. But that could change, said Brent Wilde, director of marketing and industrial services. "I'm sure the economy is a concern, and the chances people will struggle are increasing, but we haven't seen it yet."

Utility rates are not only going up, but they are rising more frequently. Idaho Power's thinking today is that small, frequent requests are easier for customers and the local economy to absorb than big, infrequent ones.

"We are now seeing almost annual rate-case filings from utilities, and they used to be extremely rare," said Gene Fadness, spokesman for the PUC. "Idaho Power once went almost 10 years without darkening our door to ask for an increase."

At the behest of the community action partnership association, the commission has scheduled two workshops this month for utility companies, customers and consumer groups to try to find new ways to help mitigate rising bills and help low-income users keep their homes warm.

"We're seeing it affecting customers, and these workshops are a way to find innovative ways to help people control their utility costs," Fadness said.

The commission said there is "significant upward pressure on electric and natural gas rates in Idaho, and energy affordability has become a central issue for many Idaho households and businesses."

Issues the commission plans to discuss include bill mitigation, payment assistance, energy conservation, legislation, and rate-plan options. Utility customers and consumer-group representatives are invited to attend. Representatives from all of Idaho's power providers will participate.

"I think the utilities realize we are facing a crisis," Chant said. "It's gratifying that the PUC has created the public workshops because nobody wants to turn people's utilities off."

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