Lawmakers seek answers on utility companies’ efforts to help Americans afford skyrocketing energy bills

WASHINGTON, D.C. – U.S. Reps. Diana DeGette (D-CO), Frank Pallone, Jr. (D-NJ) and Kathy Castor (D-FL) sent letters today calling for more information on what America’s utility companies are doing to help those struggling to afford the cost of their skyrocketing energy bills.

The lawmakers, who serve as the top Democrats on three key panels that oversee the nation’s energy industry, say they are concerned about the nation’s increasing energy costs and the impact it’s having on hardworking families. They want to know, specifically, what companies are doing to address the needs of underserved communities throughout the country, and what’s being done to ensure everyone who is eligible for assistance under the federal government’s Low-Income Housing Energy Assistance Program is receiving it.

“The impact of rising fossil fuel costs on Americans is a major concern to the Committee,” the lawmakers wrote to five gas and electric associations that, collectively, represent a majority of America’s utility companies. “We write you today to understand how your member utilities are handling the increase in home energy costs for this winter, and the related increase in need for energy assistance.”

According to data released by the National Energy Assistance Directors Association, as of November, more than 21 million American families were behind on their utility bills and owed a total of approximately $16.6 billion in arrears. 

To help those who are struggling to pay their energy costs, Congress approved legislation last year to substantially increase funding for the federal government’s LIHEAP program – which helps low-income Americans by paying a portion of their utility bill – to $6.1 billion this year.

“Unexpectedly harsh winter conditions, like the Christmas Eve storms and the historically cold conditions that hit large portions of the nation earlier this month, led to record-high energy consumption in some regions,” the lawmakers wrote. “Extreme weather events can exacerbate the financial stress that customers are already facing, putting vulnerable customers at even greater risk.” 

Now, lawmakers want to know what companies are doing to help customers access the assistance that’s available to them under the program; and what, if anything, should be done to make the program more accessible to those who need it.

Specifically, the lawmakers want to know:

• How have utilities planned for this winter season, including any customer assistance programs that were employed;
• How utilities are addressing the specific needs of low-income, marginalized, and underserved communities;
• How have partnerships between utilities and community organizations helped increase awareness and enrollment in assistance programs, such as LIHEAP;
• What, if any, changes could be made to the existing program to ease the path for customers of smaller utilities to benefit from LIHEAP;
• What, if any, LIHEAP reforms may be necessary to reduce the overall number of shutoffs;
• What, if any, long-term strategies are being developed to mitigate the impact of extreme weather events on customers’ bills; and
• What, if any, additional recommendations the utilities may have for energy assistance reform.

The request for information comes as some in Congress look to make energy-assistance programs, such as LIHEAP, more accessible to more Americans.

Among the proposals likely to be considered is one Rep. Jamaal Bowman (D-NY) and DeGette introduced last week to drastically increase funding for the federal government’s LIHEAP program from $6.1 billion this year to $40 billion annually.

The legislation would also make the program more accessible to ensure no one is spending more than 3% of their income on energy costs. And it would make it easier for individuals seeking assistance by allowing them to self-attest to eligibility requirements.

Since the current 2022-2023 season began on Nov. 1, 2022, more than 62,000 Coloradans have received LIHEAP assistance to help pay their utility bills – including more than 6,000 in Denver County alone.

The lawmakers’ letters were sent to the American Gas Association, American Public Gas Association, American Public Power Association, Edison Electric Institute, and the National Rural Electric Cooperative Association.

A copy of the letter is available here.