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ACC Votes To Block Companies From Shutting Off Power During Hottest Months

Capitol Media Services photo by Howard Fischer
State utility regulators debate limits Thursday on the ability of electric companies to shut off power to customers during the summer because of unpaid bills. From left are Justin Olson, Bob Burns, Boyd Dunn and Sandra Kennedy.

By Howard Fischer
Capitol Media Services
PHOENIX -- State utility regulators voted today to block electric companies under their purview from shutting off power to customers who do not pay their bills from June 1 through Oct. 15.

The 4-0 vote by the Arizona Corporation Commission requires electric companies to give those who fall behind up to four months after Oct. 15 to repay the outstanding balance. But it bars the utilities from charging interest or late fees.
And any customer whose power has been shut off since June 1 must be immediately reconnected, without any additional fees.
The rules, adopted on an emergency basis, are good for up to 180 days, with the opportunity of regulators to renew them for another 180 days on top of that. Elijah Abinah, the commission's utility director, said he hopes to have a final proposal for the panel to enact before next June.
There are a number of issues still left on the table.
One is the desire by Sandra Kennedy to have the no-disconnect period start on May 1. The plan adopted this morning uses June 1 as the beginning.
There also is some discussion about using weather forecasts and temperatures as a trigger rather than specific dates.
And there also is the concern by Justin Olson that eliminating late fees and interest could provide a perverse incentive for customers to simply refuse to pay their bills during the summer. That, he said, creates a risk that some people will get in so deep that they will end up having problems bringing their account into balance by the following Feb. 15, resulting in them losing power at that time.

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