Half a million Texas households at risk of losing power in coming weeks as pandemic protections lapse
Half a million Texas households at risk of losing power in coming weeks as pandemic protections lapse
Experts worry that the loss of basic utilities for Texans could exacerbate the spread of COVID-19, a continuing public health crisis in the state.
Since March 26, more than 620,000 Texas households enrolled in the state's electricity relief program.
Since March 26, more than 620,000 Texas households enrolled in the state's electricity relief program.
By Dom DiFurio
6:00 AM on Oct 1, 2020
Hundreds of thousands of Texas households are at risk of losing necessities like electricity in the coming weeks as the state’s moratorium on utility disconnections lapses.
And that worries legal experts, who fear the loss of pandemic-sparked protections could have a compounding effect on the spread of COVID-19.
Since March 26, more than 620,000 Texas households enrolled in a utility relief program set up by the Public Utility Commission of Texas. The agency launched the program as businesses across the state were forced to shut down and workers were laid off as a result of pandemic mitigation orders meant to stem the contagion’s spread.
The safety-net initiative barred companies in Texas’ competitive energy market from disconnecting residential customers for failure to pay power and water bills for six months. It also provided Texans receiving government assistance like unemployment or Medicaid with the ability to defer bill payments if they were “experiencing genuine economic hardship as a result of the pandemic."
As of Aug. 31, when enrollment in PUC’s program ended, the state had provided $53 million in payment assistance to Texans, according to the agency.
That program lapsed Wednesday, meaning Texans unable to afford utility payments will need to individually negotiate payment deferral plans with their providers, the PUC said. Customers unable to pay could have their utilities turned off.
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Texas isn’t the only state where disconnect protections are expiring. By the start of October, an estimated 76 million Americans could lose those protections, according to a report from energy efficiency firm Carbon Switch. It found that 4.6 million low-income households in Texas are at heightened risk, making it one of the most vulnerable states in the U.S. for such disconnections.
Reliant Energy, a private subsidiary of NRG Energy that sells electricity in Dallas and elsewhere around the state, stressed that not every disconnection is a result of COVID-related hardship.
“We do have to move forward as a business," said spokeswoman Megan Talley. “That being said, we are certainly being very supportive of our customers that need help, especially when it’s related to COVID or they’ve been laid off."
TXU Energy, a subsidiary of Irving-based power producer Vistra, said the company “does not intend to resume disconnections immediately." It intends to give customers time to understand they have past-due balances and set up payment plans.
The PUC program didn’t include bill forgiveness so customers are still liable to pay their outstanding balances.
Retail electricity companies like Reliant provide some payment relief options for low-income and cash-strapped Texans. Its CARE program has offset $11 million in bill payments since 2005, but the company acknowledged it can only assist with a portion of customers' bills.
In Dallas, water is a utility regulated by the city, which also suspended disconnections and late fees in March. The city has only had to establish payment plans for 71 residents.
The state moratorium and relief program were always intended as a temporary measure.
“The electricity is being delivered by a private company, and we can’t compel them to give away their product for free any more than we can compel H-E-B to give away food for free," PUC spokesman Andrew Barlow said. “The idea was to get people through the toughest times."
However, with nearly one million Texans still unemployed as of August, uncertainty remains as to how many can afford to keep the lights on.
“We don’t have leadership at the federal level on this or really any other economic issue that’s related to the pandemic," said Texas Legal Services Center’s Keegan Warren-Clem. "Our social services as a sector are maxed out. There are people who are struggling.”
Warren-Clem, founding director of the center’s medical-legal partnerships, was part of a coalition of legal groups that petitioned the state for relief measures in March. Her work focuses on improving health outcomes through legal assistance.
She’s concerned Texans who lose electricity or water might become unable to perform basic and essential COVID-19 precautions, like hand-washing and staying home as often as possible.
“This isn’t the time to decide that this is someone else’s problem,” Warren-Clem said.
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