Low-income energy customers must start paying under new plan

Low-income residential consumers of electricity or natural gas on Ohio’s percentage of income payment program (PIPP) will have to make minimum monthly payments of $10 starting Nov. 1, under a new version of the program.

The PIPP customers who receive both electric and natural gas service will have to pay a minimum of $10 per month for each service, or $20 total, under the revamped program (PIPP Plus) even if they have limited or no household income. Under the old PIPP plan, there was no minimum payment.

The Ohio Consumers’ Counsel, advocate for residential customers of Ohio utilities, objected to imposing the requirement at a time of substantial unemployment and economic distress for many families. The Public Utilities Commission of Ohio on Wednesday rejected the advocate’s request to at least temporarily waive the minimum payment.

The PUCO concluded that requiring a minimum payment, in exchange for as much natural gas as a customer needs, is reasonable in that all utility customers support the PIPP program through rider fees charged on their monthly bills. The PUCO said the minimum payment requirement “creates a very reasonable balance between providing for the very lowest income customers, while at the same time ensuring that there is some sense that service is not free.”

As of May this year, there were 215,746 gas PIPP accounts and 278,288 electric PIPP accounts statewide.

In Vectren Energy Delivery of Ohio’s natural gas service area, there are about 14,000 PIPP accounts among its 315,000 total customers. Dayton Power and Light Co. has about 31,000 PIPP customers among its total of 514,000 customers.

Low-income customers can obtain bill-paying assistance through the state-administered Low Income Home Energy Assistance Program (LIHEAP). And, under the annual winter reconnection order the PUCO approved this week, customers who have been disconnected due to nonpayment can have electric or natural gas service restored if they pay the amount owed or $175, whichever is less, plus a service reconnection fee of no more than $36.

The reconnect order may be used only once between Oct. 18, 2010, and April 15, 2011. The plan requires those customers to sign up for a payment plan to pay the past-due balance on their utility bills.

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.

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