Winter Shut Off Law Passes Senate
A 2014 law that expired at the end of last year may just make a comeback. Earlier this month, the state Senate passed a bill to revive Chapter 14, otherwise knows as the winter shutoff law. Among other things, Chapter 14 provided both consumer protections and allowed utility companies to collect on bad debt. But while the bill that was passed in the Senate, the new version includes changes that could affect electric rates. Still, consumers and utilities alike have reasons to want the winter shut off law in place. So, here’s the scoop on the law, and how this might affect your electric bill.
What the Winter Shut Off Law Does
To begin, Chapter 14 banned winter shutoffs for consumers not paying utility bills between November 30 and April 1. The law also provided other consumer protections. Such as requiring multiple notices before a company could turn off services.
The PA PUC adopted many of these consumer protections into their policies in 2004. So, at this time, no one is going to have their utilities shut off for nonpayment this winter. But without the law in place, the PUC could legally chose to change this policy.
For utilities, it’s a bit different. Chapter 14 has allowed them to work with their customers to pay their debt. Under the law, utilities could make repayment plans and charge interest. But, by not extending the law, the PA PUC must manage all utility repayment plans. As a result, this could delay debt payments worth hundreds of millions of dollars to the utilities. So, until they get paid, utilities can raise your electricity bill, instead.
Why Did PA Lawmakers Let the Law Expire?
With Chapter 14 seemingly so important to both utilities and customers, why let it expire?
Democratic and Republican lawmakers were unable to agree on changes in the law. Democrats wanted to reauthorize the law with changes that added additional customer protections. However, Republicans wanted to keep the law as-is, arguing that the law was sufficient.
Changes to Winter Shut Off Law
The Senate version of the law is largely unchanged. But, it now extends the timeframe for income-based payments up to six years. In addition, it increased the amount of time that a medical waiver can stop utility shutoff.
Still, some lawmakers are demanding more consumer protections in the law. One proposed change would include a ban on shut offs during the hottest summer months. Another would stop companies from charging extra fees to consumer when they’re behind on their bills.
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This law still needs to make it through the PA House where it will likely face more scrutiny. Last year, House versions of Chapter 14 failed to pass. The current Senate bill now lies before the House Consumer Protection, Technology & Utilities Committee.
In the meantime, if you’re looking for cheaper rates, we can help you keep your energy bills low. Compare companies, read reviews, and stay up to date on electricity news, all in one convenient website. Check out https://www.paenergyratings.com today!