More falling behind on utility bills in hard times; city sees write-offs rise to $784,000

Kathleen Moreno has had to decide between paying her $200-a-month Lodi Electric Utility bill or feeding and clothing her two daughters.

"Nobody can get ahead ... I finished a payment plan and was still behind," Moreno said. "I was drowning."

Moreno, an employee at Lodi Memorial Hospital, is one of many people having to make hard decisions about finances these days.

In the last year, Lodi and Galt have seen a significant increase in the number of people struggling to pay their utility bills.

The amount of money Lodi has had to write-off from unpaid utility bills has more than doubled in the past five years, said Lodi Electric Utility Director George Morrow. In the past fiscal year, which ended in June, the city wrote off about $784,000, which is $212,000 more than the previous year.

While the number does not seem like a lot when compared with the city's total $75 million budget, the losses still must be absorbed, Morrow said. The amount of money charged for electricity is based on the cost to provide the services, so the utility has to eat the shortfalls, Morrow said.

From the end of June to the end of October, the number of people late in payment by at least 60 days increased by 418 accounts to 1,700 in Lodi. The utility has about 25,000 accounts.

By the numbers

Lodi write-off for the past five fiscal years, which go from July 1 through June 30
2008: $784,000
2007: $572,000
2006: $423,000
2005: $475,000
2004: $371,000

Lodi 60-day delinquents (60 to 90 days behind) for 2008
End of June: 1,282
End of July: 1,425
End of August: 1,515
End of September: 1,535
End of October 1,700

Galt 48-hour notices before services are shut off
Most recent billing period in 2008: 518
Same billing period in 2007: 456

Galt turnoffs
Most recent billing period in 2008: 147
Same billing period in 2007: 95

Get help paying your bill

Need help paying your bill? Here are some programs that provide assistance for those who may be struggling.

Programs in Lodi
Applications for the following programs are available at the Lodi Finance Department office at 300 W. Pine St. Information is also available at www.lodielectric.com/residential/rates.php or by calling 333-6719.

Single Household Alternative Rate for Energy (SHARE)
Low-income people can receive a 30-percent discount on the electric and refuse portion of a monthly bill.
Requirements: A person must have proof of income and meet the program's income requirements. For example, a family of four would need a household income of less than $31,000 a year.

Senior fixed-income discount
Seniors can receive a 5-percent decrease on electric bills and 10-percent on refuse.
Requirements: A senior must be older than 62 years old and provide proof that they earn less than $45,000 to qualify.

Residential medical discount
People needing extra electric space heating or electric air conditioning because of a medical condition can quality for a 25 percent discount.
Requirements: A person must either require care or have someone in their household who requires care by a life supporting device or is a paraplegic, hemiplegic or quadriplegic or has multiple sclerosis or another medical condition.

CARE program
Low-income people can receive up to $90 for electric and $20 for refuse. For this program, pick up an application at Lodi Salvation Army at 525 W. Lockeford St. or call 369-5896.
Requirements: A person can only apply for assistance once in a six-month period. A person must have proof of income and meet the program's income requirements. For example, a family of four cannot earn more than $25,000.

San Joaquin County
Applications for these programs are available at the Lodi Finance Department office or by contacting San Joaquin the Department of Aging and Community Services at (877) 977-3988.

Home Energy Assistance program
Once a year, low-income individuals can receive assistance. The amount is based on the cost of energy, the amount of funding available and the number of people and the total income of ta household.
Requirements: Fill out an application and provide proof of income.

Emergency Crisis Intervention program
After receiving a 48-hour or shut off notice, a person can receive immediate assistance with their bill.
Requirements: A person must call to schedule an appointment, provide proof of income and take an energy class.

For programs in Galt, contact Sacramento Municipal Utility District at (888) 742-7683 or online at www.smud.org/en/Pages/index.aspx.

News-Sentinel staff

Galt has also seen the effects of the economy in an increase in 48-hour notices that warn customers of a shut-off, Finance Director Inez Kiriu said.

The utility saw a 13.6 percent increase in the number of 48-hour notices going out in the most recent billing period in 2008 when compared with the same cycle during the previous year. The number increased by 62, for a total of 518 notices.

Also, there were 52 more turnoffs during the recent billing period in 2008, which is a 54.7 percent increase from the same time in 2007.

'It would still be shut off'

Moreno was in danger of being one of Lodi's write-offs. She was prioritizing her bills, and she started to slip more and more into debt.

That's when her mother, Molly Couloures, stepped in. After Moreno's power was shut off on Nov. 12, Couloures paid the $971 bill about a week later with money she planned to use to pay her property taxes early.

"It would still be shut off," Couloures said last month. "She was never going to be able to come up with that."

Lodi officials are trying to work with people as much as they can, Morrow said. It is a constant balancing act because the city's responsibility is to collect past-due money.

"Some people are hurting, so we don't want to be too aggressive," he said. "But we are a business, and our job is to collect." The utility provides electricity before it collects payment. Because of this, utilities expect a certain amount of delinquencies, Morrow said. Every year there are some people from whom the city will not be able to collect because they move out of state or even out of the country, he said.

While Couloures understands that the city has to collect, she wishes there were more solutions to help those struggling. She said that while her daughter should have come to her for help before the power was shut off, she said there were many people who didn't expect prices for things like gasoline and food to rise so quickly.

"I know electricity is a part of warming food, but if you don't have any food to cook, who cares?" she said.

The city and the Salvation Army have programs to assist people with their utility bills.

Moreno said she plans to apply for the available programs but believes she makes too much money to qualify for any of them.

While Couloures said she understands there are programs to help, she has some ideas of her own. She suggested a program where people are given an option to add $1 or $2 to their utility bills to help out families.

Lodi is in the process of looking at ways to bring down the $784,000 in write-offs. Morrow said one option is increasing the deposit to how much it would cost for two months of service. That way, if a person stops paying, the utility can recoup some of the costs.

In Galt, the city is trying to help people with delinquencies by letting them spread out payments on a new deposit. A deposit is equivalent to three months of service, and on the city's application form, deposits ranged from $293 to $305.

"A lot of people can't pay both the delinquent amount and a new deposit," Kiriu said.

A day before Thanksgiving, Ramiro Perez went to pay his Lodi utility bill. As he waited in line, he said that he has not had a problem keeping up with his bills.

After paying his utility bill, Pedro Ochoa said he has not fallen behind on his payment, but he expects to cut back on other spending.

"I was planning to go to Mexico, but I can't because I need money to pay the bills," Ochoa said.

While Moreno is all caught up on her utilities bill, she is still worried about falling behind.

"I work to make sure the roof is over the head, the bills are paid and the food is in their mouth," she said. "It's a constant struggle every day."

Contact reporter Maggie Creamer at maggiec@lodinews.com.

Reader Feedback

gosolar wrote on Dec 28, 2008 3:33 PM:

" Acampo_Mom...
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