Committee hears bill to limit late and reconnection fees, lays it over for work with utilities

Representative Collins presented House File 3912, which would restrict reconnection fees for households below 50% of state median income, prohibit charging reconnection fees during Cold Weather Rule protections, and create a regulatory framework to review utilities' late fees.

Kristie Levinson FOSDICK (identified as with the Citizens Utility Board) described late fees as often ‘‘1.5% per month or higher'' and said they can compound to annual rates that exceed credit-card interest, disproportionately burdening low-income households. "Late fees... result in hundreds or sometimes thousands of dollars being added to customers' balances," she said, urging guardrails so fees reflect actual collection costs.

Nick Martin (Xcel Energy) and Kathryn O'Donnell (CenterPoint Energy operations director) told the committee they share the goal of affordability and described existing affordability programs, arrears management proposals and outreach efforts. Xcel's witness said some affordability programs are funded by late fees and warned eliminating those charges could shift costs to other customers or reduce funding for programs that prevent disconnections.

Members and witnesses noted several related issues are already before the Public Utilities Commission; the committee acknowledged that and laid the bill over to continue negotiations with utilities and stakeholders.