BURLINGTON, Vt. (WCAX) - Between August and December, thousands of Vermonters struggling to pay utility bills got some much-needed help.
The Vermont Public Service Department distributed $8.5 million in federal money to about 11,000 customers. The grants covered arrears in water, wastewater, natural gas and landline telephone service. Electricity companies saw most of the support. Still, due to the pandemic, Vermonters owe utility companies four times more money this year than last year.
Our Christina Guessferd breaks down whether the Vermont COVID-19 Arrearage Assistance Program was a success.
“What we’re hearing from our customers is that they’re having to make some tough choices,” said Kristin Kelly of Green Mountain Power. “They’re asking some really tough questions: how do I put food on the table, how do I pay for housing, how do I pay for heat?”
So Kelly says it’s no surprise many Vermont households are putting utility payments on the back burner.
“We have never seen numbers like this before,” Kelly said.
About 10% of GMP customers are behind at least two months on bills. They owe a total of $14 million to the company. Kelly says that’s quadruple the arrearages GMP expects this time of year.
Under the Vermont COVID-19 Arrearage Assistance Program or VCAAP, about 3% of GMP customers received $5.9 million in grants.
But Kelly says the support simply wasn’t enough.
“Those numbers continue to grow,” she said.
The Vermont Electric Cooperative is facing the same struggle.
About 2% of VEC members were awarded a total of more than $420,000 of VCAAP funds this past fall. Still, about 5% of VEC members owe about $250,000 in arrearages to date-- double what’s expected this time of year.
“That assistance was great, but it didn’t even get us back on track to where we were before,” said Andrea Cohen of VEC.
Cohen says that cost pressure point has consequences, meaning other customers could pay the price.
“When members aren’t able to pay their bills, what happens, because we’re a nonprofit cooperative, that burden will come toward other members, or we’ll have to cut back on expenses, things that are very mission-critical,” Cohen said.
Cohen says the co-op will avoid rate increases for as long as possible but the debt might diminish quality of service. For example, they could cut spending on vegetation maintenance around power lines which could lead to more outages.
But VEC and GMP say there are tools to get customers back on track and prevent repercussions.
“We really encourage people to reach out to us, talk with us and we can help you,” Kelly said.
So, if your utility bills are piling up, the companies want you to call them immediately. Most are setting up extended payment plans so when stressors from the pandemic finally subside, you won’t feel so behind. But they say federal assistance is what will make the difference.
MORE HELP ON THE WAY FOR UNPAID UTILITY BILLS
And we just learned Vermont is receiving nearly $13 million in federal relief funds to help get low-income renters who are behind on their utility bills back on track. The money is through the Emergency and Rental Assistance Program.
It’s a lot like the Vermont COVID-19 Arrearage Assistance Program or VCAAP that awarded $8.5 million in grants to about 11,000 Vermonters last fall.
This time, the financial support focuses on lower-income residents, specifically those who rent since that’s the sector in need of the most support.
Due to the pandemic, Vermonters owe utility companies four times more money this year than last year. It’s a cost pressure that could increase rates down the line. Officials say hopefully this money will prevent that possibility.
“It’s not insignificant, but it’s not sort of a scary number, and it’s something we think we can manage if we provide assistance to the households and businesses through the various federal programs that are out there,” said Riley Allen, the deputy commissioner of the Vermont Department of Public Services.
When you apply, you’ll qualify based on household income.
The Department of Public Service says the program probably won’t open to the public for about another month as they work out the details. We’ll keep you updated.
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Help for Vermonters struggling to pay utility bills during pandemic - WCAX
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