More Utility Bills Going Late, Unpaid

As energy costs continue to rise and regulated utilities come out of the cold season in which agreements forbid disconnections, the number of customers at risk for having their energy turned off continues to grow, according to reports.

The Iowa Bureau of Energy Assistance has reported that customers of regulated utilities in the state owed a record $40 million at the end of March. That isn’t expected to lessen any time soon as energy and food prices continue to rise, Jerry McKim, head of the organization told insideARM.

In March, more than 89,000 disconnect notices were issued in Iowa, up from 86,035 in March a year ago, according to McKim.

Though a majority of those consumers will soon receive the government’s economic stimulus checks ($600 to $1200 for most individuals, though some in higher tax brackets will receive less), it will be a case of “too little, too late,” to help many facing potential utility shutoff, according to McKim.

McKim says he is hearing the situation is similar for other states, though there is no centralized entity that tracks such issues. Iowa is one of a handful of states with an energy assistance bureau, said McKim, though there has been a push to form a national organization to help track delinquency trends and related issues.

There were more than 3,170 investor-owned (private), cooperative, municipal, state and federal traditional utilities in 2007, according to The Kaulkin Report, 7th Edition, from accounts receivable management industry consultant Kaulkin Ginsberg. The electric utility market is divided into three primary markets, residential, commercial and industrial. Residential accounted for 42.7 percent of industry revenues, commercial for 38.2 percent and industrial for 18.8 percent.