State policy on hardships

PURA issued a decision that forced Eversource and United Illuminating “to switch all hardship customers to standard service by July 1, 2020,’’ according to a report two years ago by the state legislature’s research office. The order forced the utilities to upgrade their computer systems to block hardship customers from signing up with an independent generator.

Eversource said it could complete the task for $323,000, while UI projected its costs at $87,000 — to be collected from ratepayers.

“Both companies asked to recover costs associated with PURA’s decision in the Systems Benefit Charge, a component of ratepayer bills,’’ the report said.

The reason for the hardship policy is that the state’s consumer counsel’s office conducted a study that showed that low-income customers had often lost money overall when dealing with thirdparty suppliers. The study said that “from October 2016 through September 2018, hardship customers purchasing electricity from third-party suppliers paid $7.2 million more during that time period than they would have if they had purchased electricity through standard service.’’

During that timeframe, 27% of non-hardship customers bought electricity from independent generators, while 35% percent of hardship customers did so. Those who lost money lost an average of $17 per bill.

Under state law, hardships cover a variety of circumstances, including anyone receiving public assistance from the federal, state or local governments. In addition, it includes anyone whose only source of money is from Social Security, unemployment compensation or veterans benefits.

The group also includes “unemployed heads of households with household incomes less than 300% of the federal poverty limit’’ and those with income under 125% of the federal poverty limit, according to the state.

State law says that PURA must review the hardship policy every two years.