Families Call for Policy Reevaluation as Utility Terminations Surge

It is estimated, based on data provided by the Energy Information Administration, that 34 million US households, or 27%, were deemed energy insecure. Energy insecurity is defined as, “the inability to adequately meet basic household energy needs… energy refers to electricity, gas, or other power sources used for lighting, cooling, heating, and the use of household appliances and electronic devices.”

Here at NNCC, we pay close attention to energy and utility needs, recognizing them as a public health need. Households that face energy insecurity are often forced to make difficult decisions on where they spend their finances, and utilities are often at the bottom of the list. Affordable utilities are essential to maintaining basic health and safety, and federal law does not recognize a right to utility services, except for an obligation to pay. That leaves utility laws to be regulated at the state and municipal level. Pennsylvania enacted its own utility regulation through Chapter 14 in 2004, and it is reauthorized every 10 years. Another reauthorization is coming this year, people are taking a further look into Chapter 14 and its impact on their communities. We explore that and more below.

What is Chapter 14?

The Responsible Utility Consumer Protection Act, codified as Chapter 14 of the Public Utility Code, is a Pennsylvania statute that establishes standards for utility billing, collection, and service termination practices for companies under the jurisdiction of the state's Public Utility Commission (PUC). Enacted in 2004, its stated purpose was to equip utility providers with mechanisms to discourage customers who can afford to pay their bills from neglecting to do so, thereby preventing uncollectible debt write-offs that could inequitably drive up costs for responsible, bill-paying customers.

However, in practice, Chapter 14 has precipitated a surge in utility service terminations affecting low-income consumers. For low-income households, non-payment is often not a matter of neglect, but rather a consequence of unaffordable utility rates and a lack of access to assistance programs and resources that could alleviate their financial burdens. Consequently, Chapter 14 has had the unintended effect of exacerbating energy insecurity and hardship for some of the state's most vulnerable residents, undermining its stated objectives of promoting consumer responsibility and equity.

The Effects of Chapter 14:

Since Chapter 14 has been implemented:

• There has been a dramatic increase in involuntary utility service terminations among low-to-moderate-income households over the last 20 years. In 2023, over 330,000 Pennsylvanian households had their gas, electric, or water shut off because they could not afford to pay – and nearly 25% of Pennsylvanians reported foregoing food, medicine, and other basic needs to keep up with utility costs. This represents a 400% increase in utility shut-offs from the late 1990s, according to Community Legal Services and PennLive.
• Harsher collection practices and harsh and unnecessary late fees, reconnection fees, and security deposits have made it much harder for low- and moderate-income households to obtain and stay connected to service.
• Chapter 14’s strict limits on payment plans and arrangements have rendered this tool often ineffective at helping moderate-income consumers actually afford to repay utility debt and stay connected to service.

Shown in a House Consumer Protection, Technology, and Utilities Committee testimony, these punitive rules and regulations disproportionally affect Pennsylvania’s low-income households, who already face compounding stressors that threaten their ability to maintain stable housing.

Health-Harming Effects of a Utility Shut-off from the National Bureau of Economic Research:

•  Inability to power medical equipment like oxygen concentrators and breast pumps;
•  Inability to refrigerate medications, breast milk, and temperature-sensitive infant foods;
• Lack of heating or cooling can exacerbate illnesses which can be particularly harmful to pregnant/post-partum people, young children, and the elderly;
•  Increased fire risk from the use of alternative heating/lighting sources like candles or generators; and
• Increased stress and mental health issues from living without basic utilities.

Chapter 14 Policy Improvements:

Chapter 14 of the Public Utility Code is set to expire at the end of 2024 and is currently up for reauthorization. Two bills in the Pennsylvania General Assembly aim to reauthorize Chapter 14: Senate Bill 1017, and House Bill 1077.

The following are policy improvements necessary to help medically vulnerable and low-to-moderate-income families remain connected to life-essential services:

• Allow registered nurses and social workers to sign medical certificates
  • Registered nurses and social workers are qualified to determine the necessity of this often lifesaving document.
  • Registered nurses and social workers are often embedded in families’ support networks as case workers or home visitors, which makes them a more accessible resource to families.
• Extend medical certificates from 30 days to 90 days and longer times for individuals with chronic conditions
  • Allows medically vulnerable household members more time to make payment arrangements with the PUC, resolve payment disputes, and apply for payment assistance programs.
• Give the Pennsylvania Public Utility Commission more flexibility to create payment plans that are sensitive to the specific needs of a household
  • This would accommodate families' unique circumstances, lead to more financially stable billing practices, and help prevent shut-offs. 
• Protect the LIHEAP Cash Program
  • LIHEAP is a considerably important program that aims to ensure access to affordable home heating and provide a basis of utility security for Pennsylvania's low-income residents during the winter months in the form of cash grants to families
  • In a potential reauthorization bill, language should be included to protect this vital program.
• Restore the 10-year sunset provision
  • A sunset provision allows the General Assembly to periodically review and evaluate the effects of Chapter 14, which stimulates a public discourse among a diverse array of stakeholders.

Looking Ahead:

Utilities impact the health of many families, as they are a basic necessity but not a right protected under federal law. States like Pennsylvania have attempted to address the issue through legislation like Chapter 14, but too often policies have unintended consequences that can remain entrenched in systems for decades. Poorly designed policies jeopardize access to essential utilities, residential stability, and health for medically vulnerable consumers. The public health impact of utility laws is felt in communities across the nation, and healthcare advocates like nurses have an important voice in highlighting the importance of health, well-being, and economic security for all.

Helpful Links:

https://www.legis.state.pa.us/cfdocs/legis/home/findyourlegislator/

https://www.stfm.org/about/advocacy/tipsforcommunicatingwithlegislators/#5980  

https://nlihc.org/sites/default/files/AG-2021/02-15_Best-Practices-Tips-for-Advocacy-and-Lobbying.pdf