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For Immediate Release
November 2, 2005
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White Proposes Bill to Protect Vulnerable from Utility Shutoffs

Harrisburg – In the face of skyrocketing home heating costs, state Sen. Mary Jo White (R-21) today announced legislation to help restore service to low-income families who have their utility service shut off due to inability to pay. 

The senator's legislation would amend a law enacted at the end of last year that made it easier for utilities to shut off service.  Her bill will cap reconnection fees and give customers more time pay their outstanding balances. 

"The current law is too harsh, and the sharp rise in home heating costs has brought us to the verge of a crisis," said White.  "This legislation doesn't shield customers from the need to pay their bills. It just sets a more realistic time frame and allows them to heat their home while they're making payments." 

White's legislation would ease the burden on families with a household income of 250 percent or less of the federal poverty level, which is $23,925 annually for an individual, $32,075 for a family of two, $40,225 for family of three, and $48,375 for a family of four.

Under Act 201 of 2004, which White voted against, utility companies can require a customer who has had service suspended to pay their entire outstanding balance before service is restored. Under White's bill, households with incomes between 250 and 300 percent of poverty level could pay their balance over 12 months. A family earning between 150 percent and 250 percent would have 36 months to pay. A household earning up to 150 percent ($29,025 for a family of four) would have 60 months to pay, with service restored immediately. 

Current law also allows utilities to charge a reconnection fee and security deposit to have service restored. The senator's bill caps reconnection fees at $50 and security deposits at $100 for low-income households. 

Under an additional provision aimed at restoring service more quickly, White's bill requires public utilities to accept a Low Income Home Energy Assistance Program (LIHEAP) crisis grant to restore service.  Administered by the state with federal funds, LIHEAP helps low-income families pay their heating bills through energy assistance grants. 

"Allowing utilities to demand full payment before turning the heat back on will place a tremendous burden on too many Pennsylvania families, especially this year," said White.  "This is not simply a matter of compassion, it's a matter of public health and safety."