Group offers IID alternative plan to ending shut-off moratorium
EL CENTRO — When the Imperial Irrigation District Energy Advisory Committee recommended nearly two weeks ago not to end the moratorium on electrical disconnections for delinquent accounts, they asked to come up with other suggestions.
Last week, the Imperial Valley Community Health Coalition, a union of numerous non-profit entities, proposed a two-part plan to avoid utility shutoffs during a COVID-19 surge by drawing on the model for eviction moratoriums recently passed by the state Legislature.
Raul Urena, co-chairman of the Imperial
Valley Equitable Social Justice Committee, said the plan, which has yet to be seen by the IID board of directors, would allow those delinquent to be automatically placed into a 12-month payment plan starting in April.
The IID is adopting a wait-and-see approach.
“While no action has been taken by the IID board of directors on this issue, the district has asked for feedback and appreciates this input and participation,” said district Public Information Officer Robert Schettler.
To incentivize these account holders to pay, the plan calls for a 25-percent write off of the original balance after 12 consecutive months of payments have been received.
Under this plan, Urena said the IID would have to understand the moratorium would be extended, only 75 percent would be paid back and it would not be immediate.
The repayment of the delinquent accounts would begin in April on a 12-month repayment plan.
The IID, he said, has spent a lot of money on advertisements to encourage people to make payments, which has not worked, as only 49 percent have responded.
“Just enroll people automatically,” Urena said. “Advertising does not work.”
Under the coalition’s plan those behind would automatically be placed on the 12-month payment plan, which would save on advertising costs. Those savings could then be used for the forgiveness.
“IID gets 75 percent of that money back, but not for a year,” Urena said.
Those ratepayers who have proof COVID-19 affected them and their ability to pay would receive a minimum 25-percent modification reduction.
Under the plan, the unpaid accounts cannot be used as a reason for disconnections, and in April the district can begin to collect some of the debt following a process adapted from the California eviction moratorium.
Beginning in January those affected financially by COVID cannot have their power shut off as long as they pay 25 percent of the current bills. In extreme COVID cases where the customers cannot pay the 25 percent they would qualify for existing assistance to cover participation in a payment modification plan.
The plan also stipulates the ratepayers who are delinquent would be capped at 20 percent of their current bill. For example, if the current bill is $100, the account holder could not be charged more than $20 on the past due amount.
Urena said the IID has yet to respond to the plan, though he is not sure they are even aware of it.
“We think it solves the IID’s budget problem,” he said.
He said they plan to let the IID board know about it at today’s meeting.
Luis Flores, also with the IVEJC, said he understands the IID may not want to forgive a portion of the debt, though he pointed out the district has done that in the past, including on commercial bankruptcies.
“The forgiveness clause is to incentivize people to keep up with the payments,” Flores said, adding this would allow the IID to receive more back than it would otherwise.
Flores added the district should not expect to recoup all of its losses quickly with large lumpsum payments.
He hopes this plan works going forward, as when the moratorium was provided in March there was no real plan. He also said the IID, like almost everyone else, did not know COVID was going to be around this long.
He also pushed back against IID’s stance that there were programs to help people out, saying there could have been thousands of applications with little chance of them being accepted.
“As it stands now there is no incentive to apply,” Flores said. “It is unfortunate that happened. It’s a nightmare for people to apply.”
Flores is pleased that it appears the district will think this through and not make a rushed decision.
“Slow the process down some,” he said.