Cost-based response to low-income energy problems
- National Consumer Law Center, Boston, MA (United States)
The goal of a public utility commission concerning low-income energy rates is to have a utility collect the greatest proportion of a current bill that it can from low-income households while minimizing the costs of collection. Stating the issue in this fashion recognizes the warning of the Vermont Department of Public Service, which said last year that there are two harsh realities for the utility industry. First, charging a rate and collecting a rate are two separate actions. Simply because a utility charges a particular rate does not mean that it will ever collect that money from a low-income household. Second, even when a utility does collect the total bill from a low-income household, the utility often spends considerable sums in the very act of collection. The National Consumer Law Center has developed the energy assurance program (EAP) to address these dual problems. The EAP recognizes that some households simply do not have sufficient income to pay for the basic necessities of life, including energy. The EAP is offered to utilities as a mechanism to maximize the collection of revenue while minimizing collection expenses. Through an EAP, utilities will pursue the least-cost provision of service in the credit and collection arena. The EAP addresses a utility's business problem posed by low-income and inability to pay, in a manner that no other program can. The EAP represents good regulation, good business, and good social policy.
- OSTI ID:
- 6264833
- Journal Information:
- Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 127:5; ISSN PUFNA; ISSN 0033-3808
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
290200* -- Energy Planning & Policy-- Economics & Sociology
BUSINESS
COST
DEBT COLLECTION
ECONOMIC POLICY
ELECTRIC UTILITIES
GOVERNMENT POLICIES
HUMAN POPULATIONS
LOW INCOME GROUPS
MINORITY GROUPS
PLANNING
POPULATIONS
PRICING REGULATIONS
PUBLIC UTILITIES
REGULATIONS