In 1992, 5.3 million households had utility service involuntarily disconnected for nonpayment. The number of people losing service is thus significantly greater, assuming two or more people per household. Niagara Mohawk had stunning success with its low-income Power Partnership Program. But energy efficiency has its limits. Usage cannot be squeezed low enough to make bills affordable for these households.
Solutions There are, however, solutions.
Utilities, regulators and government acting individually and in concert, in the interest of low-income households can make significant improvements that will ultimately benefit us all. Access to Service Given the problems that low-income households face today with high energy bills, it is vitally important for policymakers to ensure that undue burdens are not placed on already overburdened households when they seek service. The problems that low-income households have with paying their current utility bills carry over to the payment of deposits as well. The collection of a cash deposit is one means to gain protection against the potential loss of revenue through bad debt. A utility must justify its collection of deposits, however, in light of the costs inherent in obtaining and maintaining them.