Utility shut-offs on the rise across the country

Los Angeles Times

WASHINGTON — Utility shutoffs for customers behind on their energy bills are increasing around the United States, reaching 50 percent or more in some hard-hit areas, as the effects of rising prices and a sagging economy are beginning to drag down more vulnerable consumers.

Agencies that provide financial assistance for energy costs report long waiting lists and significant jumps in first-time applicants. With the prospect of much more serious trouble this winter, when bills traditionally are higher, Congress is exploring a significant increase in federal energy assistance as part of a second economic stimulus plan for consideration next month.

Consumers are being hit by an economic double whammy of high gasoline prices and rising utility bills, which are up considerably in most places because of the much higher cost of fuel used to generate electricity or heat residences.

“We are certainly seeing the signs of the economic downturn in people falling behind in their payments and more of them getting to the point where they’re getting their service shut off,” said George Lewis of PPL Electric Utilities, whose customers live in central and eastern Pennsylvania.

The increasing number of shutoffs also comes as the nation has struggled with job losses (the national unemployment rate rose in July to 5.7 percent, its highest level in more than four years) and a housing crisis, with almost 1.4 million homes foreclosed in the first six months of this year.

In Michigan, which had the nation’s highest unemployment rate — 8.5 percent — in June, Detroit-based DTE Energy reported a 56 percent increase in utility shutoffs for nonpayment of bills for the first five months of this year compared with the same period a year ago.

Southern California Edison Co. reported that service was shut off to about 165,000 of its 4.8 million customer accounts from January through May this year — a 14 percent increase from same period in 2007.