Late power bills in pandemic have some feeling powerless

SAN RAMON, Calif. — Millions of U.S. households are facing heavy past-due utility bills, which have escalated in the year since the pandemic forced Americans hunkered down at home to consume more power.

And now, government moratoriums that for months had barred utilities from turning off the power of their delinquent customers are starting to expire in most states. As result, up to 37 million customers — representing nearly one-third of all households — will soon have to reckon with their overdue power bills at a time when many of them are struggling with lost jobs or income.

A study done by Arcadia, which runs a service that helps households lower utility bills, found that the average amount past due by those in its network was about $850.

President Joe Biden’s $1.9 trillion rescue aid package, enacted into law this month, will provide some support. It includes $5 billion earmarked for people who need help with power and water bills. Combined with other government financing allotted for energy aid since the pandemic began, the total available to help struggling households pay utility bills is about $9.1 billion.

But all that assistance represents just a fraction of the $27 billion in overdue balances of U.S. households, according to the National Energy Assistance Directors Association, which helps low-income consumers.

Moratoriums on shutting off power for past-due households had existed in at least 35 states at some point during the pandemic.

In response, some struggling consumers chose to funnel their money toward housing, food and other obligations because they knew they wouldn’t lose their electricity or natural gas even if they skipped their utility payments.

“There’s a moratorium,” said Tracey Capers, executive vice president of the Bedford Stuyvesant Restoration Corporation, a New York City-based nonprofit that offers financial aid and counseling. “It doesn’t mean you never have to pay. That’s the concern that we have for people.”

Utilities are sometimes willing to negotiate repayment plans with customers rather than cut off their power. Still, a more comprehensive solution is needed, said Sen. Edward Markey, D-Mass., who added he expects Congress to draft legislation this year to provide further help to people struggling with utility and other bills.