With utility shutoffs looming, many Missourians are in danger of being left in the dark

BY THE KANSAS CITY STAR EDITORIAL BOARD

Karla, a single mother of three living in Kansas City, is behind on her rent. She owes close to another $2,000 in utility bills.

In May, she was laid off from her job at a nursing home after a COVID-19 outbreak swept through the facility. Red tape prevented her from receiving unemployment benefits for nearly two months. Bills stacked up, and Karla fell into a financial hole.

“I was already struggling before,” Karla, who did not want to use her last name to protect her children, told The Star Editorial Board. “Those eight weeks waiting on unemployment devastated me. I had no money.”

Suddenly, she was forced to choose among paying for food, rent or utilities.

Because of plumbing issues in the home she rents, water bills as high as $500 per month have become the norm for Karla. Fortunately, KC Water hasn’t cut off service since the COVID-19 pandemic began in March.

But late last month, Evergy suspended her electricity service after she paid about half of a $900 bill. As of last week, Karla owed nearly $1,600 in back rent.

In Missouri, a crisis is coming. Moratoriums on disconnecting utility services have expired. Evictions are looming. And a federal supplement to unemployment benefits has disappeared.

Delinquent gas and electric bills are now coming due for thousands of Missourians who are in danger of having their utilities cut off unless the Public Service Commission acts on their behalf.

The Missouri Public Service Commission, which regulates investor-owned utility companies such as Evergy and gas company Spire Energy, has ordered those Missouri utilities to present plans for collecting on past due accounts without burdening low-income families.

The commission has worked with most public utility companies that voluntarily halted suspension of service, waived late fees and provided flexible payment plans at the onset of the pandemic.

But more must be done to ensure that no Missouri resident is without electricity, water or gas during the COVID-19 pandemic. Essential protections have been allowed to expire on an arbitrary timeline, even though coronavirus cases are still multiplying, and families are still struggling.

EVERGY, SPIRE DECLINE TO SAY HOW MANY ACCOUNTS SUSPENDED

In mid-July, most public utility companies in Missouri resumed disconnections for non-payment. The bills are now due for at least 40,000 Evergy customers, and 12,000 Spire consumers are at risk of losing service.

That’s a concern for social service organizations such as the Mid-America Assistance Coalition in Kansas City, which anticipates a 40% to 50% increase in applications for the federal government’s Low Income Home Energy Assistance Program.

“Folks have not been paying their utility bills,” said John Rice, the coalition’s executive director. “Those bills are not going to be wiped out. Those debts have to be paid.”

Evergy wouldn’t disclose the number of accounts suspended since it resumed shutoffs in July. Representatives from Spire also declined to provide that information.

Details about disconnections and past due accounts are considered business-sensitive information and are not publicly available, said Gina Penzig, manager of external communications for Evergy.

Tens of thousands of customers were on payment plans as of this month, an indication of how many people are in dire need of financial assistance in August, which is often the hottest month of the year.

“We’re helping 40,000 customers this summer,” Penzig said.

Similarly, thousands of Spire customers have been placed on payment plans.

“As a company, we will remain focused on providing solutions to help customers maintain access to reliable, safe natural gas,” a spokesperson for Spire said.

Freezes on disconnections are still in place in California, Maryland, Michigan, Virginia, Alaska and Hawaii, among other states.

To keep its most vulnerable customers out of the dark and to keep gas and water flowing, the Public Service Commission should follow the recommendations of the Missouri Energy Efficiency for All Coalition.

The energy alliance’s suggestions include ordering utility companies in Missouri to extend the moratorium on disconnections and waive late fees until the end of the year, granting a 60-day grace period before disconnections can begin again and allocating funding to forgive outstanding debt caused by the COVID-19 pandemic.

The coalition also recommended that Evergy, Spire and other utility companies take into consideration financial or medical hardships related to COVID-19.

The Missouri Public Service Commission must act to assist customers like Karla. The well-being of people across the state depends on it.

Emergency funds for income-eligible families struggling to pay rent or utility bills are available. Contact a local community service organization or visit the Low Income Home Energy Assistance Program at www.acf.hhs.gov/ocs/programs/liheap for more information.