Virginia senators press SCC to suspend late fees for all utilities

(KOTA)
Published: Mar. 19, 2020 at 10:57 AM EDT
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Right now, across Virginia, utility companies cannot disconnect anyone from their electricity, natural gas, or water due to an order by the State Corporation Commission. But Senators Mark Warner and Tim Kaine want that order to go a step farther.

Earlier this week, the Virginia SCC

directing all electric, natural gas, and water companies across Virginia to suspend any service disconnections during the COVID-19 outbreak.

The order lasts at least 60 days, and can be extended depending on circumstances.

According to the SCC, the 60-day moratorium will provide temporarily relief for customers, whether residential or business, who may be financially impacted by the coronavirus.

But while people across the state cannot have their utilities disconnected due to lack of payment for the next two months, in most cases, that doesn't stop their utility company from charging them late fees if they can't pay.

There are exceptions: The Shenandoah Valley Electric Co-op (SVEC)

that they would suspend all disconnections, as well as all non-payment and late payment fees.

"The cooperative reached this decision with measured, consistent thought and care prior to taking action to ensure we can maintain our level of service to members," they said in a statement.

They did emphasize, however, that while disconnections and late payment fees are being suspended until further notice, it does not release members from the responsibility of paying their electric bills.

At the end of the pandemic, SVEC will offer payment agreements, but electric bills will remain on account and require payment.

Other utility companies, like electric giant Dominion Energy, however,

for the near future, but they took no action on late or non-payment fees.

Local government-controlled utilities, like the city of Staunton's public water, have also suspended disconnections due to late payment or non-payment, but most haven't made calls on late fees.

Now, on March 19, Senators Kaine and Warner are urging the SCC, which regulates all public utilities in Virginia, to issue an order suspending late fees throughout Virginia's state of emergency due to the COVID-19 outbreak.

In a letter to the Virginia State Corporation Commission, the Senators wrote, “First, we want to applaud the Commission for its recent order directing regulated electric, natural gas, and water companies in Virginia to suspend service disconnections due to non-payment for at least 60 days in response to the COVID-19 outbreak. The temporary suspension of service disconnections is necessary to minimize adverse impacts on Virginians and public health. The continued service of public utilities – including electricity, water, and natural gas – is essential to protect the health and well-being of Virginians and prevent the spread of COVID-19.”

But they encouraged the SCC to go a step farther and enact additional measures to protect Virginians during the public health emergency.

“While the suspension of service disconnections will ensure the continued service of essential public utilities for Virginians, the unprecedented scope of this public health crisis requires additional measures to ease the burden on Virginians," their letter continues. "One such measure should be a temporary suspension of late payment charges by public utilities,” advised the Senators. “As this public health emergency intensifies, thousands of Virginians will likely be furloughed or have their work hours substantially reduced. This will put an enormous strain on countless families in the Commonwealth to make ends meet. Suspending late fees during this state of emergency would help ease the burden on the most vulnerable Virginians during this tumultuous time, if only slightly.”

Their full letter can be found below:

Dear Commissioners: We write today concerning the ongoing public health emergency in the Commonwealth of Virginia caused by the novel coronavirus (COVID-19) and the Virginia State Corporation Commission’s (SCC) role in regulating public utilities during this state of emergency. Due to this ongoing health crisis, we respectfully request that the Commission promptly issue an order suspending the ability of any public utility in Virginia to charge late fees through the duration of Virginia’s state of emergency. First, we want to applaud the Commission for its recent order directing regulated electric, natural gas, and water companies in Virginia to suspend service disconnections due to non-payment for at least 60 days in response to the COVID-19 outbreak. The temporary suspension of service disconnections is necessary to minimize adverse impacts on Virginians and public health. The continued service of public utilities – including electricity, water, and natural gas – is essential to protect the health and well-being of Virginians and prevent the spread of COVID-19. While the suspension of service disconnections will ensure the continued service of essential public utilities for Virginians, the unprecedented scope of this public health crisis requires additional measures to ease the burden on Virginians. One such measure should be a temporary suspension of late payment charges by public utilities. As this public health emergency intensifies, thousands of Virginians will likely be furloughed or have their work hours substantially reduced. This will put an enormous strain on countless families in the Commonwealth to make ends meet. Suspending late fees during this state of emergency would help ease the burden on the most vulnerable Virginians during this tumultuous time, if only slightly. Again, we want to thank the Commission for its recent order directing public utilities to suspend service disconnections due to non-payment during this public health emergency. We also want to thank you in advance for your consideration of this request, and we look forward to working with you and other stakeholders to ensure the health and well-being of all Virginians moving forward.