Sign in Subscribe
Electric utilities

California Public Utilities Commission Directs Utilities to Leverage Federal Funding for Utility Debt Relief

Strategic Insights

— 2 min read

The California Public Utilities Commission (CPUC) has issued a ruling directing major utilities, including Pacific Gas and Electric Company (PG&E) and Southern California Edison Company (SCE), to take steps to leverage federal funding available for utility debt accumulated during the COVID-19 pandemic. The ruling aims to confirm the process is functional and that utility customers can access the resources made available, and to expose any barriers to accessing the funding so that they may be promptly addressed. The CPUC has directed the utilities to work in concert with water utilities to identify a sample group of customers with whom they will directly engage and assist to apply for the California Housing and Community Development (HCD) Emergency Rental Assistance Program (ERAP) funding. The utilities are also required to provide case management to the customers, assist with uploading utility bills, and track and report the customers' application status to the HCD ERAP.

Key Takeaways:

  • The CPUC has directed major utilities to leverage federal funding available for utility debt relief, focusing on customers with arrearages accumulated during the COVID-19 pandemic.
  • The ruling requires utilities to work in concert with water utilities to identify a sample group of customers to assist in applying for HCD ERAP funding.
  • Each utility is directed to identify at least five willing and likely eligible customers to apply through each Local Service Provider administering the HCD ERAP, as well as at least 15 customers through the statewide online portal.
  • Utilities are required to provide case management to customers, assist with uploading utility bills, and track and report the customers' application status to the HCD ERAP.
  • The utilities must report weekly on their tracking of applicants to the HCD ERAP, including the number of customers who have agreed to apply, the number that applied, and the number and amount of arrearage relief paid.
  • The units are allowed to utilize their own methods to identify eligible and willing customers.

Statistics:

  • $2.6 billion is available for eligible California renters to assist with 100% of energy, water, and communications utility arrearages.
  • The California Housing and Community Development Emergency Rental Assistance Program (ERAP) is accepting applications for eligible California renters.
  • The CPUC has directed utilities to report weekly on their tracking of applicants to the HCD ERAP, with the first report due on April 12, 2021.
  • Each utility must develop a second sample of at least 20 willing and likely eligible customers beyond those subject to the low-income data exchange process.

Sources:

  • CPUC Ruling 21-02-014: Order Instituting Rulemaking to Address Energy Utility Customer Bill Debt Accumulated During the COVID-19 Pandemic.
  • California Housing and Community Development (HCD) informational website for local governments, tribes, and utilities.
  • Housing is Key website: https://housing.ca.gov/covid_rr/partner_resources.html

Read more