Almost 35 million Americans may soon lose their utilities

During the COVID-19 pandemic, millions of Americans relied on emergency orders imposed by state and local governments that prohibited utility companies from shutting off services such as gas, electricity and water. Writes about it CNBC.

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However, many of these decrees will expire by the end of September, leaving 34,5 million homes without these services, according to a new report by energy efficiency startup Carbon Switch.

Governors and utility commissions in 32 states have introduced new moratoriums on shutting down utilities during the pandemic. Several states, such as Ohio and Arizona, have not passed the new decrees, but have extended seasonal shutdown restrictions. However, in general, many of these measures were adopted as short-term solutions, so most of the moratoriums will expire soon.

Meanwhile, 14 states have never imposed specific moratoriums at all, relying instead on utilities to voluntarily leave electricity for consumers with expired bills. However, 8 of the 10 largest utilities in the country plan to return to normal operations by September 15 and will begin to cut off electricity and gas if bills become past due.

"There will be a wave of blackouts," says Michael Thomas, founder and principal investigator of Carbon Switch. This is because in some states, up to a third of payers are in debt. As a rule, only 7% to 9% of Americans do not pay their bills, he said.

During August and September, 14 moratoriums will expire. Carbon Switch estimates that about 1 million households will be left without utilities by October 76. At that time, only a dozen states and Washington, DC would still have moratoriums. According to Carbon Switch, only seven states - California, Connecticut, Kentucky, Maine, Massachusetts, New York and Wyoming, as well as Washington, DC - have no moratorium expiration dates.

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According to an analysis of the latest monthly data from the Bureau of Labor Statistics, about 9,5 million people are currently out of work in states where moratoriums expire on or before October 1. An additional 10 million households in these states are currently below the federal poverty line, according to Carbon Switch.

Before the pandemic, utility outages disproportionately affected low-income Americans, as well as black and Hispanic families.

A 2018 California study found that while Hispanic utility customers account for about a third of people living in PG&E's service area, 62% live in areas with the highest outage rates.

The pandemic is likely to exacerbate these problems, Thomas said. A recent survey of researchers from Indiana University found that black respondents were twice as likely as whites to report that they could not pay their utility bills in April or May.

Problems with utility bills can affect the health of Americans. Nearly a quarter, 22% of respondents from Indiana University said they cut back on food and drug use to pay utility bills.

“Energy insecurity is already a widespread problem in the United States. It disproportionately affects those below or below the poverty line. These are black and Hispanic families, families with small children, people with disabilities and those who use electronic medical devices, ”the researchers write.

How to get help paying for utility bills

If you are having trouble paying your electricity, water, or phone bills, contact your utility company directly to inquire about payment assistance programs. According to the NCLC, only 1% of eligible households benefit from these programs.

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You can also apply for assistance under Energy Assistance Programs for Low-Income Families (LIHEAP)that helps pay your electricity bills. While income requirements vary by state, they usually qualify for a family of four with an income of less than $ 36. You can call the National Energy Referral Help Line (NEAR) toll-free at 400-1-866-674 to get information on where to apply for LIHEAP.

Temporary Assistance for Needy Families (TANF) Program, funded from the federal budget, can provide basic assistance as well as help with expenses related to housing, meals, childcare and vocational training.

There are also grants, programs and even charities where you can turn to for help. UtilityBillAssistance.com provides a useful breakdown by state.

If you find it difficult to pay your phone bill, the FCC has a program called Life Line, which provides discounted landline or cellular services to low-income families.

“There are so many people who have lost some of their income, or even all of their income,” says Thomas. "And that makes the number of customers at risk of utility outages much higher."

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