Today it is snowing, and two days ago Harrisburg Democrats voted to kill a bill to help poor people keep their heat

Twenty-four Democratic and Republican legislators in Harrisburg apparently think that early December is a great time to vote to kill a bill to help make sure everyone has access to utilities, including heat. The vote was 24 to 5.

Access to utilities is a basic, fundamental need. That's why in the 1970s, legal services lawyers across the country argued that people have constitutional due process rights related to their utility service. Courts agreed. You have rights in gas and electric and water service, including the right to adequate notice of termination.

However, Pennsylvania legislators were concerned that utility customers were 'gaming the system' and getting utilities that they weren't paying for. They passed Act 201 in 2004 to fix that, and make ultility termination easier when poor people fall behind on their bills. Since the act passed, "Pennsylvania has seen a 38% rise in annual residential service terminations and a 39% rise in homes using potentially unsafe heating sources in winter."

A new bill has been proposed, HB 824, which would "remedy oppressive security deposits for utilities, ease fees for reconnection, create requirements that low-income families be informed of supportive programs and grants, increase payment agreement time frames, among other safe and humane changes." Check out details of the bill here.

It was voted down in committee two days ago, with many Democrats joining the Republicans in the majority. Here's their rationale, as reported by David DeKok of the Patriot News:

Chairman Joseph Preston, D-Allegheny, prime sponsor of the bill, blamed "industry lobbying" for the defection of Democrats on the bill. He vowed to start over in January and come up with a new bill to reform Chapter 14.

Among Democrats opposing bill was Rep. Ron Buxton, whose district is composed of Harrisburg and Steelton. Buxton said he voted "no" because "I was convinced that there were enough safeguards in place." He also said legislators hadn't had enough time to digest the many changes H.B. 824 would have made in Chapter 14 because many of them didn't attend the one hearing on the bill held in Pittsburgh in October.

He said a chart showing the income levels of people who qualify for assistance was passed out by Republicans this morning. "We need to get the word out to people that programs are available to assist them with their energy bills," he said.

Minority chairman Robert W. Godshall, R-Montgomery, who urged the bill's defeat, said the committee needs to look out for the interests of all of Pennsylvania "rather than a special case here and there."

There's a letter you can sign in support of HB 824, as well as information about who to contact to show your support, in another blog entry of mine. Tell your Democratic legislators that access to utilities is something that benefits all Pennsylvanians. Restrictive legislation supported by industrial lobbying groups is not.

From ACORN's Release on HB 824

ACORN Disappointed in Vote on Utility Reform Bill in PA House Committee

Utility Lobby Blocks Progress, Wins Fight Against “Essential Regulation”

ACORN members from the around the state are disappointed today after HB 824 was defeated in the House Consumer Affairs committee. HB 824 would have guaranteed low-income families, seniors, and the disabled a right to one payment agreement from their public utilities. The bill also would have closed loopholes that allowed utility companies turn away disconnected customers’ LIHEAP grants or medical certifications as a means of reinstating their accounts.

Since Chapter 14 of Act 201 was enacted in 2005 the number of disconnected households has jumped by 38% due to the additional costs of security deposits, reconnection fees, and restrictions on LIHEAP assistance. Nearly seventeen thousand families went without heat last winter and additional four thousand were forced to use unsafe heating sources, resulting in house fires throughout Pennsylvania.

The defeat of HB 824 illustrates the strength of the utility lobby in Harrisburg. Electric and Natural Gas Utilities routinely contribute hundreds of thousands of dollars to members of General Assembly. Pennsylvania’s notoriously lax campaign finance laws have allowed them extremely favorable treatment from state lawmakers.

Ty Christie, Chairman of the Public Utility Commission, testified in support of HB 824 at an earlier hearing. He told legislators that his regulatory body has been deprived of essential controls, including the ability to issue even one payment agreement. Sonny Popowsky, Pennsylvania’s Consumer Advocate also testified in favor of the bill. Despite this, and the support of nearly 20 statewide organizations, HB 824 was defeated.

“I really just felt like crying,” said Miriam McKnight, 76. McKnight left Philadelphia at 6 AM to witness the vote with around 60 ACORN members from around the state. “I have emphysema, and need my machine and heat to live. The company threatened to shut me off when I was a couple of days late. The man on the phone told me to ‘stay with a friend’.” McKnight had five days to scramble and get a note from her doctor to stave off termination of her electric service, a few days later she paid nearly her entire monthly income in fears that she would still be shut-off. Under current law, once terminated, Mrs. McKnight could be considered an “applicant for service” rather than a “customer” and denied the accompanying medical protections.

You can read the testimony

You can read the testimony of Sonny Popowsky, Consumer Advocate of Pennsylvania, here.

Also, check out this account, from the Patriot News, of the passage of Act 201/Chapter 14, starring Perzel and PGW, everyone's favorite antiheroes:

The Responsible Utility Consumer Protection Act, known as the Chapter 14 law, was enacted one night during the legislative session last November [2004]. No public hearings were held.

The bill came about after Philadelphia Gas Works persuaded Republican House Speaker John Perzel that it needed protection from customers who were gaming the system to avoid paying their bills. PGW pointed to its extraordinarily high level of write-offs for uncollectible bills. In 2004, those write-offs amounted to 11.25 percent of PGW revenues.

Perzel's original bill to make service shut-offs easier affected only PGW. Other electric and gas utilities, such as Pennsylvania Electric Co., clamored to be let in on the legislation, even though state Public Utility Commission statistics showed that their write- offs for uncollectible bills were in what business experts consider a normal range of 2 percent to 3 percent of revenues.

[Note: the original Perzel bill also had such features as a $40 fee for filing complaints with the Public Utilities Commission]

And some of the consequences of the current law:

The Chapter 14 law took effect Dec. 14. In the first four months of [2005], utility shut-offs soared 113 percent from the same period in 2004.

Then came a tragedy that has defined the new law in the eyes of many. On May 14, fire destroyed a house in Hastings, Cambria County, killing four people and seriously injuring two others.

Pennsylvania Electric Co. had shut off power to the house on May 11, and the family had left a candle burning in the bathroom for light. The family cat is believed to have nudged the candle, causing it to tip over.

Recently, the PUC said it plans to fine Penelec $250,000 for repeated violations of state law and administrative errors that preceded the Hastings shutoff.

The utility failed on several occasions to refer the family, which had total annual income below 150 percent of the federal poverty level, to its own community assistance program, the PUC said. That program could have lowered the family's electric bill to a more affordable level and might have averted the shut-off, officials said.

Some Political Context

This is really one of our perennial issues here on YPP and in the general progressive movement. Lance Haver has been to the annual public hearings that the PUC does in Philadelphia every year for more than a decade (they kicked him out for a few years after he started a fire as part of his testimony but I think he still actually went to the building. They have started letting him in again).

First of all, I agree that we need better protections, but there is some additional color I can put on this. Ian can probably help with some details here, as it's been a couple years since I was actually working on this issue from a day-to-day basis, but here we go:

1) Rep. Buxton's quote really captures the political problem created by Act 201. He says he has adequate protections for homeowners in his district. Well, that's debatably true. See, Buxton's people have better protections than anyone whose gas is supplied by a "municipally owned natural gas facility" (that is, anyone but Philadelphians). Someone can help me out on the details, but the Winter rules in the rest of the state aren't draconian. They hurt people, no question, but they've got a lot more leeway.

I guess what I'm saying is that Act 201 effectively divided the state against Philadelphia (did we really need to help them do that?). Now, to pass reforms to help here, Buxton would have to go out of his way to show interest in Philadelphians' welfare. Might not be too hard for Buxton, but plenty of other legislators wouldn't want to be seen doing that.

2) Preston. I'm 90% certain he voted for Act 201 and helped get it passed in the first place, so I find his self-righteous bluster sort of funny. Guess he's got religion. Well, good for him.

All that said, Vince and Dwight found some money to help Philadelphians this Winter.

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This Too Will Pass
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