Low-income LIPA customers to get utility arrears forgiveness

Around 14,000 LIPA customers who owe more than $28 million in past-due electric bills have relief in sight after the state announced a credit program that would wipe out past due bills for low-income customers.

The relief comes just as PSEG’s power supply charge continues to increase to record levels during the higher-use summer season, and more than 22,000 LIPA customers at the end of March faced potential shut offs because of nonpayment. PSEG has postponed shut-offs as the state prepared arrears forgiveness programs.

Under the plan announced last week, Long Island and Rockaways customers in PSEG’s Household Assistance Program are eligible to have arrears from May 1 or older forgiven. Customers who meet low-income eligibility requirements can apply for the relief through years end, PSEG Long Island spokeswoman Elizabeth Flagler said.

Gov. Kathy Hochul’s office last week announced $567 million would be available statewide for the low-income bill-credit program, including $250 million in the state’s fiscal 2023 budget. Hochul’s office said more than 327,000 low-income families would benefit from the credit.

Statewide, according to Public Service Commission filings, total arrears are around $2.3 billion, including $1.695 billion in residential arrears tied to 1,151,442 customers. Customers are considered in arrears if there bill is more than 60 days past due.

Just under half of the bill credits for Long Island’s low-income PSEG arrears program, or around $9.8 million, will come from the state funding, with the balance made up through a utility surcharge paid by other customers, the PSC said.

The surcharge can be collected from customers over a period of five years, the PSC recommended, with bill impacts no greater than 0.5%. In addition, according to state filings, a state working group is developing on programs that could reduce arrears of those not eligible for the low-income program.

Those second-phase programs would provide “incentives and/or other measures to reduce arrears for customers who are not eligible for [low-income assistance] that will be proposed to the [Public Service] Commission at a later date,” the PSC said in a filing.

In April, LIPA reported total arrears more than doubled over the past two years, to $234.9 million in February compared with $112.4 million in 2020. Most of those overdue bills were for residential customers, who owed $181.5 million.

To see if you qualify for the household assistance program, visit PSEG’s website at

https://www.psegliny.com/myaccount/customersupport/financialassistance/householdassistance

National Grid’s Long Island gas customers also will be eligible for the program. There are $3.18 million in eligible arrears, the PSC reported, with around $1.2 million in state funding to pay for the programs. The bulk of the balance to be recovered through a customer surcharge is $1.54 million, the PSC said.

By Mark Harrington

mark.harrington@newsday.comMHarringtonNews

Mark Harrington, a Newsday reporter since 1999, covers energy, wineries, Indian affairs and fisheries.