Thousands of Virginians behind on their utility bills could soon face disconnection under a decision from state regulators on Thursday that amps up pressure on state lawmakers to resolve their differences on how to offer relief.
Lawmakers remain divided on how much debt forgiveness will be offered to indebted customers and who will pay for it, according to the spending plans approved by the Senate on Thursday and the House on Tuesday.
It’s unlikely that those differences will be resolved by Monday, when a moratorium on utility disconnections expires. Gov. Ralph Northam sought to extend the moratorium by seven weeks to allow state lawmakers to wrap up ongoing legislative work during the special session — a request the State Corporation Commission denied on Thursday.
The decision came just hours before Senate lawmakers approved the chamber’s revisions to the state budget, teeing up a reconciliation fight between the Democratic-controlled House and Senate.
The clock is ticking on a number of other issues that have divided the chambers, including evictions relief and spending on police reforms. Varying approaches from the House and Senate in response to protests over police brutality and systemic racism have resulted in disparate spending plans: the Senate allocated $11.2 million for the issue while the House has budgeted $28.4 million.
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The special session convened to address COVID-19 has dragged on into the fall, with no end in sight, as the fraught relationship between House and Senate leaders yields little in the way of coordination. Before an eventual adjournment, lawmakers are expected to resolve differences between overlapping legislation and the state’s spending plan.
State regulators have estimated that Virginians owed more than $184 million in past-due utility bills, including $137.4 million in electric bills, according to a preliminary survey that only took into account debt incurred before July 1 from a sampling of utilities.
That has almost certainly ballooned in the months since, and advocates say that the ongoing challenges of COVID-19 could prompt a disconnections crisis if lawmakers don’t offer relief.
“The SCC tried to be very clear when they extended the moratorium to Oct. 5 that they would not extend it again. They needed a policy decision,” said Dana Wiggins of the Virginia Poverty Law Center. “There is relief to be had. People deserve it now, especially as we’re about to head into the colder months.”
Lawmakers in both chambers have agreed on the need for relief, including extending the moratorium through the state’s emergency declaration. But key differences have yet to yield a final plan.
For customers of Dominion Energy, the Senate has proposed using a portion of the $366.8 million in overearnings that the company has collected in recent years to offer debt forgiveness. That forgiveness would apply to all bills that are 30 days past due as of Sept. 30.
The House version also directs Dominion to use overearnings, but covers all bills that are 60 days past due as of Aug. 31. The House also offers $120 million in federal funds to cover some of the utility debt.
Dominion, the state’s largest utility at 2.4 million customers, said Thursday that it does not plan to disconnect customers until state lawmakers come to a resolution.
Dominion may still recoup some losses by increasing customer bills.
“We support the General Assembly’s proposed approach to extending the moratorium on disconnects and will not disconnect any Virginia customers for nonpayment while waiting for the General Assembly’s final actions to take effect,” spokesman Rayhan Daudani said.
It’s not immediately clear what will happen to customers served by other utilities. Northam spokeswoman Alena Yarmosky said customers can’t be disconnected as long as they are on a payment plan. Customers have until Monday to join the payment plan secured by the SCC, which allows for a 12-month repayment period.
“Today’s SCC action heightens the urgency to act, and [the governor] renews his call for legislators to move quickly,” Yarmosky said.
Kenneth Gilliam of the group New Virginia Majority said lawmakers’ solution should come quickly, and not at the cost of all customers.
“Virginians are counting on our state lawmakers to include much needed relief efforts in our state budget to help Virginia families keep their lights on and the water running, while holding utility companies like Dominion Energy accountable for overcharging rate payers,” he said.
