Grace Kaye outlines California's COVID debt relief for utility customers
September 17, 2021 | San Francisco City, San Francisco County, California
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San Francisco's Clean Power Asset team is taking significant steps to provide COVID-19 debt relief to customers, as outlined in a recent government meeting. Grace Kaye, a regulatory analyst, presented an update on the city's efforts to assist residents and small businesses struggling with utility arrears due to the pandemic.
The California Public Utilities Commission (CPUC) has extended a moratorium on service disconnections until September 30, 2025, allowing customers with overdue bills to avoid losing access to essential services. This decision follows the city's proactive measures to protect water and power customers during the pandemic.
Under a new COVID payment plan, residential customers with arrears exceeding 60 days will be automatically enrolled in two-year payment plans. This initiative ensures that as long as customers adhere to their payment plans, they will not face disconnection. Small businesses in disadvantaged communities will benefit from similar arrangements, with payment increases capped at 5% of their average bill.
Additionally, the state budget has allocated nearly $700 million in federal funding to address COVID-related arrears. The California Arrearage Payment Program (CAP), established by a recent trailer bill, will prioritize bill relief for active residential customers with past due balances accrued during the pandemic. Funds will be directly credited to customers' bills, and disconnections will be prohibited while CAP funding is pending and for 90 days thereafter.
The CPUC is also moving into a second phase of the COVID debt proceeding to address remaining issues related to debt forgiveness and the implementation of the CAP program. This phase will assess any outstanding customer debt after the application of CAP and other relief programs.
As these initiatives unfold, the Clean Power Asset team remains committed to supporting customers and will continue to provide updates on the progress of these critical relief efforts.
The California Public Utilities Commission (CPUC) has extended a moratorium on service disconnections until September 30, 2025, allowing customers with overdue bills to avoid losing access to essential services. This decision follows the city's proactive measures to protect water and power customers during the pandemic.
Under a new COVID payment plan, residential customers with arrears exceeding 60 days will be automatically enrolled in two-year payment plans. This initiative ensures that as long as customers adhere to their payment plans, they will not face disconnection. Small businesses in disadvantaged communities will benefit from similar arrangements, with payment increases capped at 5% of their average bill.
Additionally, the state budget has allocated nearly $700 million in federal funding to address COVID-related arrears. The California Arrearage Payment Program (CAP), established by a recent trailer bill, will prioritize bill relief for active residential customers with past due balances accrued during the pandemic. Funds will be directly credited to customers' bills, and disconnections will be prohibited while CAP funding is pending and for 90 days thereafter.
The CPUC is also moving into a second phase of the COVID debt proceeding to address remaining issues related to debt forgiveness and the implementation of the CAP program. This phase will assess any outstanding customer debt after the application of CAP and other relief programs.
As these initiatives unfold, the Clean Power Asset team remains committed to supporting customers and will continue to provide updates on the progress of these critical relief efforts.
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