Since February 2020, the IOUs’ residential and small business arrearages have increased by over $650 million to over $1 billion in December 2020. $324 million of the increase is owed by CARE or FERA customers.
OIR poses questions surrounding:
- Existing arrearage relief programs such as AMP
- The need for new programs or policies and related eligibility
- Possible recovery mechanisms such as Federal funding
- Impacts on the Commission’s Social and Environmental Justice Plan
Appendix A includes two straw proposals for arrearage relief:
Proposal A:
- One-time $200 bill forgiveness for arrearages over $1,000 followed by a payment plan (AMP) for the remainder except for low-income customers who will only have to pay off half of the remainder.
- Uses research and eligibility parameters from AMP program.
- Small business customers are included.
Proposal B:
- Provides flexibility for customers to pay off arrearages while ensuring the IOUs receive full payment for providing service.
- Expands payment plans to 24 months.
- Customers can defer payments for 3 months without breaking plan.
- Small business customers are included.
- For both proposals, eligible arrearages would be limited to those accrued between March 4, 2020 and June 30,2021, or the end-date of the disconnection moratorium.
