Unpaid bills are causing more utility shut-offs

WASHINGTON -- Utility shut-offs for customers behind on their energy bills are increasing around the country, reaching 50% or more in some hard-hit areas, as the effects of rising prices and a sagging economy are beginning to drag down more vulnerable consumers.

Agencies that provide financial assistance for energy costs report long waiting lists and significant jumps in first-time applicants. With the prospect of much more serious trouble this winter, when bills traditionally are higher, Congress is exploring a significant increase in federal energy assistance as part of a second economic stimulus plan scheduled for consideration next month.

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"This is a billion-dollar problem," said Mark Wolfe, executive director of the National Energy Assistance Directors' Assn., which represents state and tribal programs that disburse the federal funds. Nearly 6 million families receive energy assistance. "We need at least $2.5 billion to maintain the purchasing power of the average energy grant and reach an additional 1 million households in order to provide immediate assistance to the families that have lost access to power, pay off high arrearages and help those purchase heating oil next month in the cold-weather states."

In California, a family of four with an annual income of $42,427 or less is eligible for the utility-bill assistance. But demand for aid is far greater than available funding.

"It's like triaging in a catastrophe," said Kifaya, noting that priority for energy assistance is given to low-income families whose fuel bills consume a large proportion of their incomes, and to the elderly, the disabled and families with young children.

http://www.latimes.com/news/nationworld/washingtondc/la-na-energy7-2008aug07,0,6376775.story