$25 Million Federal CARES Money To Help Cover Past-Due W.Va. Utility Bills

Thousands of West Virginians who are behind on their utility bills due to the pandemic may be eligible to have some or all of that debt erased under a new grant program announced Wednesday.

Speaking during his COVID-19 virtual press briefing, Gov. Jim Justice announced he was setting aside $25 million in federal CARES Act money for past-due utility bills.

Residents who have been unable to pay all or some of their water, electricity, natural gas or sewer services between March 1 and July 31 should be receiving letters this week from their utility providers alerting them of their eligibility, Justice said.

Public Service Commission Chairwoman Charlotte Lane urged West Virginians not to ignore the letters, which are being sent out by utility companies.

“Don’t throw those bills away,” she said. “Open up the envelopes and return them to your utility company or to the Dollar Energy Fund.”

Customers have until Thursday, Nov. 12 to respond. After agreeing voluntarily to not shut off services during the early months of the pandemic, utilities resumed terminations after July 1.

The state’s five largest utilities — West Virginia American Water, Appalachian Power, Mon Power, Wheeling Power, Dominion Energy Hope and Mountaineer Gas — reported more than 133,000 delinquent accounts.

The PSC said it was unable to estimate the total number of residents who are delinquent on their utility bills due to the pandemic or the total amount owed.

Lane said it’s unlikely the $25 million grant program will wipe out all of the COVID-related unpaid bills, but it’s a start.

“We recognize that this generous grant program will not alleviate everyone’s delinquency, but the Public Service Commission itself has specially trained consumer affairs technicians who are available to assist customers in negotiating payment arrangements with the utility companies,” she said. “And the utilities themselves are continuing to work with customers who are behind in their bills and are offering payment plans.”

Recently a coalition of progressive advocate groups in West Virginia sent a letter to the governor’s office requesting the administration allocate unsent CARES Act funding to help struggling West Virginians impacted by the pandemic, including for utility services. The groups estimated residents statewide had up to $50 million in unpaid utility bills.

Some advocates expressed concerns over the July 31 cutoff date for the new program.

“People need help, not just people who were affected before July. This is too little. Maybe he will reconsider and add more to the fund, while extending the window for eligibility,” tweeted Karan Ireland, a Sierra Club campaigner and advocate.

West Virginia American Water Tells Regulators It Will File Rate Case

The company that provides water to nearly 600,000 West Virginians has notified regulators it intends to file a rate case for its water and wastewater operations.

The notice was given by West Virginia-American Water Company to the Public Service Commission of West Virginia. It says the company expects to file its case within 30 days.

The group Advocates for a Safe Water System says it will strongly oppose any attempt by the company to pass along to customers costs West Virginia-American Water incurred last year when chemicals from a leaking Freedom Industries storage tank along the Elk River contaminated drinking water supplies.

West Virginia-American Water’s plant was affected by the spill that left residents of nine counties without clean drinking water for more than a week in some cases. 

Public Service Commissioner Defends State Oversight of Utilities

West Virginia Public Service Commission Chairman Michael Albert appeared before a Joint Judiciary Committee meeting Tuesday at the Capitol to respond to a report the committee received last month. That report accused the Public Service Commission of having too much regulatory power.

The West Virginia Rural Water Association, and other groups who represent small public service districts, commissioned the report that was released in October that concluded the over regulation of small public service districts is bad for customers.

Albert, however, disagreed. He told lawmakers the rural water associations’ stance and decreasing the amount of oversight his agency has would lead to higher prices for rate payers.

“Public utilities, whether publicly owned or privately owned, are monopolies,” he said. “The commission fills a special role with respect to public utilities. We are a surrogate for competition that is otherwise lacking in their operations.”

The report also said the PSC does not allow small public service districts to keep a contingency fund to draw from in case of emergency. Albert told lawmakers they are permitted to set aside a small amount, but the size is restricted for a reason.

“That’s the rate payers money,” he said. “That’s the equivalent of asking stressed rate payers to pony up cash out of their pocket to be put in a fund to be reserved for the PSDs.”

Albert’s conclusion was that without the PSC’s oversight, the rate customers are paying will be controlled by public utility boards. Those boards are made up of appointed members the public cannot hold accountable.

He says the system in place is one that succeeds in protecting the consumer. 

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