The pandemic has left thousands without a job as businesses have been forced to scale down or close permanently. More than 2.9 million U.S. unemployment claims have been made since March 2020.
One last-minute bit of relief came for unemployed workers in the form of a supplemental $300-per-week in benefits through March 14, 2021. But as the jobless rate remains high and the weather grows colder, they face an additional crisis: how to pay their utility bills.
What is North Carolina doing to help its jobless residents?
Last May, Gov. Roy Cooper signed Executive Order 142 (EO 142) to prohibit utility shut-offs as well as evictions until July 29, 2020. In addition, EO 142 clarified that no late fees should be imposed on unpaid bills accumulated during the period.
Then, at the end of the year, Cooper signed Executive Order 184, extending the eviction moratorium until the end of this January.
The N.C. Utilities Commission also sought to help North Carolina’s most vulnerable populations with an order effective July 29 that allowed ratepayers up to 12 months to pay any outstanding debt accrued through August 31.
But the Utilities Commission’s order did not apply to some utilities, including the 26 rural electric cooperatives, more than 30 municipal electric utilities, and numerous private gas utilities. The co-ops and municipal utilities serve more than 1.6 million customers who were not protected by the Commission’s order. Many of these utilities - but not all - have voluntarily suspended disconnections for non-payment and, in some cases, fees for late payment.
Duke Energy Carolinas, Duke Energy Progress, and Dominion Energy extended their moratoriums on North Carolina customer disconnections for unpaid bills only until October 2020. Duke Energy disconnected 16,961 customers in November and Dominion Energy shut off 2,316 customers. Disconnections were stopped with Cooper’s second executive order.
Still, residents and local governments face some grim facts on utilities-related debt.
- Nationally, according to the National Energy Assistance Directors’ Association, electric and gas debt exceeded $24 billion at the end of 2020, three to four times what it was in 2019.
- The situation is dire for rural towns. For example, Red Springs, a community of more than 3,000 in southern North Carolina, purchases its power from a consortium and must pay all electricity costs up front even when residents are behind on their bills. In one month, nearly 40 percent of its residents fell behind on their electricity bills.
- North Carolina cities that own their own utilities have seen sharp increases in overdue balances and comparable declines in revenue, at a time when they struggle to break even.
- Duke Energy reported staggering data at the end of September 2020 on the number of customers behind on bills: more than 500,000 residential customers, or 18.5 percent of all customers, past due on their electric bills, a nine percent increase in just two months. The total amount owed by residential customers as of Sept. 30 was $186 million, with an average amount owed per customer of $330.
The N.C. Utilities Commission is expected to rule soon on Duke Energy’s rate case, meaning that rates will likely increase. Yet in its third-quarter earnings report, Duke Energy showed only a 3.6 percent decline in revenues year over year. That indicates that the pandemic didn't affect the utility to the extent that it has hurt low-income North Carolinians.
Utility shut offs present an equity and public health challenge for our state, and North Carolina leaders should prioritize measures to stop utility shut offs this winter. The legislature opened its session on Jan. 13. Until it addresses the issue, Cooper should continue to use his executive authority protect the vulnerable.
As we start a new year, we struggle to offer good cheer to those who cannot pay their energy bills. These individuals deserve a continued lifeline.