As states reopen after coronavirus shutdowns, consumers' unpaid utility bills loom as costly problem

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As states begin to reopen from coronavirus-related shutdowns, a wave of unpaid utility bills coming due will not only saddle Americans still out of work with new debt, it could also drive up rates for everyone.

“We’ve basically wiped out a decade worth of job creation in a month and a half,” an economist says. May’s unemployment figures will likely look even grimmer.

Wolfe said the program normally reaches about 20% of the 32 million eligible households across the U.S. The CARES Act provided another $900 million to the program, enough to subsidize another 2 million homes, Wolfe estimated. Wolfe agreed that increased demand for the program’s assistance is temporarily being masked in many states because many people don’t learn that they can apply for help until they get a shut-off notice, and those notices have been suspended in many states.

There are already signs of trouble. Southern California Edison, which provides electricity to 15 million people, has seen an increase of nearly 150,000 customers who have fallen behind on their bill payments in the span of one month.

 

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There’s no way “everyone” needs to be saddled with someone else’s debts. Individuals need to arrange their own payment plans or reductions with the utility.

Who would have guessed...?!

When states began issuing stay-at-home orders and millions of Americans lost their job due to COVID-19, governors in dozens of states temporarily barred utility companies from shutting off gas, water, electricity and even internet.

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