With federal energy assistance on hold, OPC petitions regulators to temporarily block utility terminations for energy assistance customers
BALTIMORE – With winter approaching and federal energy assistance funds soon to run out, the Public Service Commission should take emergency action to maintain utility service for low-income customers during the winter months, the Office of People’s Counsel said in a petition filed today.
“More than 125,000 Maryland households depend on energy assistance funding to keep their lights on and homes heated,” Maryland People’s Counsel David S. Lapp said. “These customers should not face service cut offs during the coldest months of the year.”
Maryland’s Office of Home Energy Programs (OHEP) typically begins disbursing grants to qualifying customers under the Low Income Home Energy Assistance Program (LIHEAP) in December after receiving an allocation of funds from the federal government in October. But with the federal government shutdown, funds have not been disbursed, and even if the shutdown ended today, funds likely would not be available for eligible customers until at least December, OPC’s petition said.
OPC’s petition asks the Commission to direct utilities to maintain utility service without interruption through March 2026 for all recipients of OHEP-administered funds for fiscal years 2025 and 2026. It further requests that the Commission direct utilities to waive late fees and down-payment requirements for any utility payment plans.
The Commission also should provide guidance for utility messaging about the termination protections to make sure customers are aware of the protections and when they will end, OPC said. Customers also should be informed that their account balances will grow during the moratorium.
The Commission previously has exercised its emergency powers to protect customers from terminations during the COVID pandemic and during summer months due to the risks of extreme heat.
Utilities are already providing additional protections for furloughed government employees and some have already committed to additional protections for low-income customers with LIHEAP funding on hold.
LIHEAP funding supports several OHEP programs, including programs providing home heating assistance; gas arrearage assistance; bulk fuel funding for customers using fuel oil, propane, and other bulk fuels; and crisis funding to address lack of heat.
“The lack of energy assistance funding creates a dangerous situation for Maryland’s low-income customers,” Lapp said. “Our most vulnerable households need added protection with federal funding on hold.”
The Maryland Office of People’s Counsel is an independent state agency that represents Maryland’s residential consumers of electric, natural gas, telecommunications, private water and certain transportation matters before the Public Service Commission, federal regulatory agencies and the courts.
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