INDIANAPOLIS — State utility regulators announced Indiana's moratorium on utility disconnections will not be extended past Friday.
The end of the moratorium, which has been in place since March when Gov. Eric Holcomb issued an executive order in response to the COVID-19 pandemic, means power could be shut off as soon as Saturday for Hoosiers who have fallen behind on utility bills. However, some utility companies, such as Duke Energy and Citizens Energy Group, have said they will not voluntarily disconnect customers until after Sept. 1.
Holcomb announced at his Aug. 5 coronavirus press conference he would not extend the moratoriums.
In its decision Wednesday, the Indiana Utility Regulatory Commission provided some relief for customers by ordering utility companies to offer extended payment arrangements of six months through Oct. 12. It also announced it will continue to suspend the collection of late fees, deposits, disconnection fees and reconnection fees through that date.
In its order, the IURC said it is concerned customers will not contact utility companies about extended payment plans until they are faced with disconnection.
"Given the significant number of customers that have not yet entered into payment arrangements despite the increased communication about payment plans from their utilities, we are concerned that residential customers in particular may not enter into a payment plan until they face actual disconnection," the IURC's order said. "And, following disconnection, the requirement to pay reconnection fees or deposits to restore service will only increase the customer’s outstanding arrearage, which could be already be substantial. For these reasons, we decline to extend beyond August 14 the prohibition on utility service disconnections.”
The moratorium previously was scheduled to expire at the end of June, but the IURC extended it for six weeks as economic fallout from the pandemic continued.
The Indiana Office of Utility Consumer Counselor and the consumer advocacy group Citizens Action Coalition responded to the IURC's decision.
On its website, the OUCC urged customers who need payment arrangements to contact their utilities now. Last week, the OUCC filed a motion asking the IURC to make extended payment plans of a minimum of 12 months available through Dec. 1.
Citizens Action Coalition executive director Kerwin Olson condemned the IURC's decision to end the utility moratorium. On Monday, the Citizens Action Coalition, along with the Sierra Club and other agencies, filed a motion on Monday asking the commission to extend it indefinitely.
“We are exceptionally disappointed. It’s a shame that the IURC failed to protect Hoosiers during these extraordinarily trying times," Olson said in a statement.
"At a minimum, the State should ensure that all Hoosiers have access to essential human services during this crisis, like clean water for hand washing and hydration, as well as internet service as many continue to work and go to school from home. Shutting off utility service does little to nothing to benefit the utilities and poses great harm to Hoosier households. It’s immoral and unjust. Public policy should reduce harm to Hoosiers and serve the public interest. Today’s IURC does neither.”
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