Office of the Ohio Consumers' Counsel

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Payment Assistance

• Utility disconnection and reconnection
• Home Energy Assistance Program (HEAP)
• Percentage of Income Payment Plan
• Home Weatherization Assistance Program
• Lifeline discounts for telephone service

Utility Disconnection and Reconnection

Having electric, natural gas, telephone and water service is very important, but for some consumers it can be difficult to pay these utility bills. If you are not able to keep up with payments, you may find yourself facing disconnection. Disconnection can occur at anytime during the year. Utility companies are allowed to disconnect service for non-payment or when a customer has tampered with equipment or violated other regulations. Electric and natural gas companies must follow certain requirements to ensure that you have an opportunity to work out a payment arrangement before disconnection for non-payment occurs such as:

• A grace period in which to pay your bill.
• At least 14 days notice before disconnection. An additional 10 days notice is required during the winter heating season for electric and natural gas.
• Disconnection can only be done during normal business hours.

Some of the reasons for utility service disconnection are:

• Failure to pay monthly bill.
• Moving from the location and requesting a disconnection.
• Repairs or maintenance.
• Tampering with any of the company owned equipment (such as meters).
• Violating any other utility regulation.

Your telephone service cannot be disconnected for any of the following reasons:

• Failure to pay for service of a former customer at your residence, as long as that person is no longer living at the address.

• Failure to pay for a class of service different from the one provided at your residence. An example of this would be a business service or long-distance rates in order to have local telephone service.

• Failure to pay amounts involved in a dispute.

For consumers who have had their utility service disconnected, there may be a reconnection fee as well as the requirement to pay a deposit. Contact the utility company for specific details.

Energy Assistance Programs

If you are facing disconnection or are struggling to pay your utility bills, help is available. Several payment assistance programs provide options to help eligible consumers keep or restore their natural gas and electric service.

Extended Payment Plans

Consumers facing disconnection can offer to pay a portion of the amount due over a period of time to avoid disconnection. The company may accept or reject the proposed payment plan. If the company rejects the consumer’s offer, it must provide an option of participating in either the 1/3 (1/3 of total past due amount plus current charges each month) or 1/6 (six equal payments of the past due amount in addition to current monthly charges) payment plans.

Budget Billing

Budget billing is a way for electric and natural gas customers to spread their winter heating and summer cooling expenses throughout the year. Each company reviews the historical usage of the customer or residence, the expected weather conditions and the anticipated cost of energy to calculate a uniform monthly budget amount. In addition, a settle up process exists where the actual bill is compared with the budget amount to ensure customers do not over or under pay.

Customers can enroll in a budget billing program any time during the year by calling their utility company. Any customer who is current on their monthly bills is eligible to sign up for budget billing. If you have a past due bill, the company may require payment before initiating budget billing. To enroll, call your electric or natural gas utility company.

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Home Energy Assistance Program (HEAP)

The Home Energy Assistance Program (HEAP) is a federally funded program designed to help low-income consumers pay for heating costs. There are two different types of HEAP programs: HEAP and Emergency HEAP (E-HEAP). To participate in either program your household must be at or below 150 percent of the federal poverty level.

HEAP pays a portion of your winter heating bills. This amount varies among companies. The percentage is determined by several factors that include, but are not limited to:

• Total household income.
• Total household size.
• Type of fuel used.
• Cost of the primary heating source.

Once a percentage has been determined, a one-time credit will be sent to your utility company. If you have bulk fuel costs or are served by a non-participating utility, a voucher will be sent to you that can be redeemed by the fuel supplier. This option is available only once per winter heating season.

To qualify for E-HEAP, the primary and/or secondary energy source must have been disconnected, threatened to be disconnected or have less than a 10-day supply of bulk fuel. Once eligibility is established, a one-time payment of up to $175 will be sent to your utility company. That will be credited toward your account in order to assist you in maintaining your utility service.

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Percentage of Income Payment Plan (PIPP)

The Percentage of Income Payment Plan (PIPP) is a special payment plan for low-income customers of regulated electric and natural gas companies. The payments are based on a percentage of the household’s income. PIPP customers must be at or below 150 percent of the federal poverty level and apply for all energy assistance programs for which they are eligible.

A PIPP customer pays a percentage of their monthly income before taxes to the utility company that provides the primary source of heat.

Consumers who use natural gas as the primary source of heat pay 10 percent of their income to their natural gas company and 5 percent to the electric company. Consumers who have an all electric home or apartment pay 15 percent. You are responsible for any unpaid portions of your bill, which is called an arrearage. When you leave the PIPP program, you have the same amount of time to pay the arrearage as it took to accumulate the debt, plus an additional 24 months.

PIPP Arrearage Crediting and Forgiveness Programs – How Customers Can Pay Off their PIPP Balance

Electric

Most of the electric companies in Ohio offer programs that assist customers who are no longer eligible for the Percentage of Income Payment Plan (PIPP) and must adjust to paying their current monthly electric bill. Although each company administers its program a different way, the basics are the same:

• In the first year customers are off the PIPP program, they continue to pay their PIPP amount. (Even though customers are no longer on PIPP, they still continue to accumulate arrearages during this period).
• During the second year, customers pay just the amount of their current electric bill.
• From the start of the third year until the arrearage is paid off, customers pay their current electric bill, plus an arrearage amount (not to exceed $20). The arrearage amount is matched by the electric company based on its program guidelines.

Customers who are no longer eligible for PIPP should contact their electric company for details on its arrearage crediting program.

Natural Gas

Natural gas customers of Columbia Gas of Ohio, Dominion East Ohio and Vectren Energy Delivery of Ohio have an opportunity to reduce or eliminate their PIPP debt. With the natural gas debt forgiveness program, if a PIPP customer:

• Pays the PIPP amount on time and in full each month for one year, the company will reduce the PIPP balance that the customer had at the beginning of the 12-month period by 33 percent.
• Pays the PIPP amount on time and in full each month for 24 months, the company will forgive 50 percent of the remaining balance.
• Pays the PIPP amount on time and in full each month for 36 months, the company will eliminate the entire debt.
• After each additional 12-month period of time that the PIPP amount is paid on time and in full each month, the full amount of the accumulated arrearage will be eliminated.

If at any time a customer misses a payment, he or she must start the process again and pay on time (by the due date) and in full for one year before the company will reduce the PIPP balance by 33 percent.

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Home Weatherization Assistance Program

Ohio’s Home Weatherization Assistance Program (HWAP) is a federally funded residential energy efficiency program for low-income consumers. The no-cost program, offered through the Ohio Department of Development’s Office of Energy Efficiency, aims to reduce energy use in homes. Through this program, an eligible household can receive:

• Attic, wall and basement insulation.
• Heating system repairs or replacements.
• Health and safety testing and inspections.

All measures of energy efficiency are based on an on-site energy audit and cost effective guidelines developed using a computerized energy audit. Individualized education on additional energy efficient recommendations is an important component of the program.

Eligible households must be at or below 150 percent of the federal poverty guidelines, participate in the Home Energy Assistance Program (HEAP) or receive Supplemental Security Income. After a residence has been weatherized, the average household saves $153 per year on its energy bills. Consumers can apply for this program through the HEAP application or by contacting their local Community Action Agency.

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Lifeline Discounts for Telephone Service

Telephone service is important not only to stay in touch with family and loved ones, but for emergencies as well. Lifeline programs allow income-eligible consumers to stay connected or be reconnected to telephone service at discounted rates.

Most of Ohio’s local telephone companies offer Lifeline programs. Eligibility requirements vary by company. Under Lifeline, fees to establish service are waived. You also receive a discount off the monthly basic local charges in addition to other benefits.

OCC Can Help

If you have questions about eligibility or would like an application for any of these programs, contact the OCC toll free at 1-877-PICKOCC (1-877-742-5622) or online at www.pickocc.org .