Utilities push bill to retain cut-off authorityJun 7 - McClatchy-Tribune Regional News - Sam Kennedy The Morning Call (Allentown, Pa.)
Legislation in the state House of Representatives would make permanent the provision in a nearly decade-old law that has made it easier for utilities to cut off service to delinquent customers. The 2004 law, called Act 201, gave utilities greater authority to resolve conflicts with customers who have not paid their bills, without intervention by the Public Utility Commission. Though written specifically to benefit then-struggling Philadelphia Gas Works, the law applied to electricity, natural gas and water utilities throughout the state. So attached to Act 201 have those utilities become that they are lobbying to eliminate its built-in sunset provision a full year and a half before it is due to kick in. The state's Office of Consumer Advocate, however, is among a coalition of opponents asking what's the rush. At the very least, Act 201 should be reviewed and amended before renewal, said Tanya J. McCloskey, the acting consumer advocate. "In my view, [the law] may have swung the pendulum too far in favor of the utilities' collection efforts without leaving the [PUC] adequate authority to consider the needs of customers who try to pay their bills but are unable to do so in a timely manner," she testified during a hearing in April. A recent PUC report on Act 201 found that electric utilities across the state have nearly doubled their terminations, McCloskey noted. Quoting directly from the report, she said, "More customers now enter the winter without a central heating source and the Commission is concerned about the health and safety of the occupants in the these homes." The chief author of House Bill 1047, which would eliminate Act 201's sunset provision, is Rep. Robert Godshall. The Montgomery County Republican, representing the 53rd District, could not be reached for comment Friday. At the April hearing, Donna Clark, a lawyer for the Energy Association of Pennsylvania, spoke in support of the bill. She described Act 201 as "the backbone of subsequent PUC regulatory policies designed to reduce uncollectable expenses and mitigate the need for rate increases for electric and gas service in the state." "[It] set forth a framework for equitable, common-sense residential utility collections standards while ensuring that utility service remained available to all residential customers on reasonable terms," she said. PPL Corp. of Allentown is one of the many utility companies that favor House Bill 1047. "It has provided tools for utilities that have proved quite effective," said Michael Wood, spokesman for the Allentown company. "It clarified the responsibilities for both the utility and the customers." Among those opposing the bill along with the consumer advocate are the AARP, which represents the interests of seniors; the Pennsylvania Utility Law Project, a Harrisburg group that works on behalf of low-income utility customers, and Community Legal Services, a Philadelphia nonprofit group. Under Act 201, AARP spokesman Ray Landis said, customers targeted for termination are on their own while utilities decide their fate. "From the consumers' point of view, it can be intimidating to negotiate directly with your utility," he said. He also complained that the law "imposed onerous fees for reconnections after service is shut off." The sunset provision should be left in place until consumer-friendly amendments to Act 201 are adopted, Landis said. If the provision is eliminated, "then there is no pressure to make those positive changes." The House Consumer Affairs Committee approved Bill 1047 last week. It is unclear when -- or even if -- the full House will vote on it. Should the House approve it, the legislation would then need approval by the Senate and the signature of Gov. Tom Corbett before becoming law. skennedy@mcall.com 610-820-6130 http://www.energycentral.com/functional/news/news_detail.cfm?did=28877148 |