NJ utilities: No more extensions, start paying up or lose gas, electricity after March 15

Hundreds of thousands of electric and natural gas customers in New Jersey who are behind on their utility bills will soon face the prospect of having their service cut off unless they sign up for help or make payment arrangements.

Utilities already have sent out disconnection notices to some customers who are in arrears.

Now, after a winter moratorium against shutoffs expires on March 15, the companies can restart collection activities put off for two years since the start of the COVID-19 pandemic. Customers who are behind should contact their utilities right away. Financial assistance programs and payment plans are available.

"We are seeing really bad numbers," said Brian O. Lipman, director of the New Jersey Division of Rate Counsel. "I am hopeful that what is going to happen is there are a lot of people who are going to be rushing to get the assistance they need."

Collectively, residential customers owed more than $661.1 million in electric and natural gas charges as of January, according to state figures. When you add in commercial accounts, the total bill jumps to nearly $846 million, up 33% from 2021.

Back in March 2020, state officials grew worried about the effects of the pandemic as people lost jobs and were forced to stay at home, New Jersey's electric, natural gas and water utilities agreed not to pursue collections or shut off service to customers who had delinquent accounts.

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The deadline was extended twice and expired on June 30, 2021. Afterward, regulators provided a grace period until Dec. 31, 2021, for people to sign up for aid or make arrangements to pay their bills, a period that was further extended to March 15. There are no more extensions.

Public Service Electric & Gas, the state's largest utility, said about 275,000 customers, or 11% of its the utility's 2.5 million customers, are at risk of having their natural gas and electric service shut off after March 15. They are more than 90 days past due.

"We never want to turn off a utility service because of our customers' inability to pay," said Rebecca Mazzarella, a PSE&G spokesperson. "For months, we have been reaching out directly to customers with mailers and a multimedia campaign."

The utility also has representatives from social service agencies in its customer service centers to help customers fill out applications for programs. "We are pulling out all the stops to make sure our customers know about these resources," Mazzarella said. "There is so much available." (PSE&G customers can go online to pseg.com/HelpNow or call 800-357-2262.)

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Rules for shutoffs

Turning off a customer's electric or natural gas service is not automatic. A utility representative must go to a customer's home and talk to an adult to make sure they understand their service is going to be shut off, said Lipman, the rate counsel. They also must make sure the customer is not on life-sustaining medical equipment.

"For some people, this has been a back burner issue because they are just trying to survive," Lipman said. "Those are the people that I worry about. I am hopeful that there is a very slow fallout of shutoffs."

There remains an unprecedented number of customers who are behind on their bills. It also comes as heating bills are on the rise due to higher natural gas costs.

According to utility data filed with the Board of Public Utilities, 936,505 residential electric and gas customers were behind in their utility bills as of this past January, with 323,485 more than 180 days overdue.

As of December, 161,853 residential water bills also were overdue, amounting to $49.8 million in charges, up 51% from a year earlier.

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State assistance available

State regulators have made it easier for more people to qualify for assistance.

In October, utilities regulators expanded income limits for its Universal Service Fund and Fresh Start programs to include moderate-income households. For instance, a family of four earning up to $106,000 now qualifies for assistance, up from a previous income limit of $48,000 for a family of four.

Fresh Start, part of the Universal Service Fund, provides unlimited debt forgiveness for past due balances, even high balances.

If a customer pays their current monthly bill in full for one year, prior overdue balances are wiped clean. "If they pay their (current) bill for 12 months, their debt can be forgiven," said Kathy Kerr, director of utility assistance with the Affordable Housing Alliance.

As part of the the expansion, the benefit cap for the Universal Service Fund was raised from $150 a month to $180 a month.

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Another program, Payment Assistance for Gas & Electric, also helps to pay utility bills. For instance, a family of four with an income of up to $128,000 is eligible, Kerr said.

"There have been a lot of changes to many of these programs to make more folks eligible," said Carlos Rodriguez, president and chief executive officer of Community Food Bank of New Jersey in Hillside. "So many families have been affected because of the financial impact of COVID over the last two years. They are finding themselves in need for the first time."

Kerr said the Affordable Housing Alliance has seen an increase in calls. "They're worried," she said. Besides people applying for aid, people who have already filled out an application are seeking help to show proof to the utility that they have applied.

As of Jan. 31, New Jersey Natural Gas had approximately 24,500 residential customers, or less than 4.5% of its total residential customers, who were at least 90 days in arrears, said Michael Kinney, a utility spokesman.

"The last thing we want to do to shut a customer’s service off and we are committed to work with customers to find solutions whenever possible," Kinney said in a statement. "That is why it is so critically important that customers having difficulty paying their natural gas bill contact us, so we can help them get the energy assistance they need."

Customers should contact the utility at 800-221-0051 and say, “energy assistance” at the prompt, or email energyassist@njng.com.

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In January, Jersey Central Power & Light sent disconnection notices to more than 47,000 customers, spokesman Christopher Hoenig said. As of Feb. 1, 52,684 residential customers were more than 90 days past due, a total bill amount of $47.3 million.

"We strongly encourage all JCP&L customers who are past due on their bills to contact us at 1-800-662-3115, and our representatives can help work to find the best program for you," Hoenig said in a statement. "Customers at risk of disconnection will receive a communication regarding their account status, and even if they are not eligible for one of the assistance programs, they may enroll in a no-money-down, 12-month payment plan.”

Rockland Electric said it has about 1,600 customers who are 90 days behind in their bills. Communications with customers have taken place throughout the pandemic and currently include bill inserts, phone calls and emails, spokesperson Mike Donovan said.

The utility urged customers to contact Rockland Electric at 877-434-4100. "Our goal is not to turn off our customers," Donovan said in a statement. "However, beginning March 16, Rockland Electric will restart the collections process which can lead to termination of service for nonpayment after the required regulatory notification."

Through January of this year, about 96,600 Atlantic City Electric customers were behind on their electric bill.

"The time to take action is now and we ask our customers to take this action by calling 800-642-3780 to review payment options," Atlantic City Electric spokesperson Amber Burruezo said. Information also is available at Information is available online at atlanticcityelectric.com/Help.

"We have taken extensive actions to engage with our customers, and we will continue to do so in our hope to get our customers to take action," she said. "We are standing by to help every customer establish a payment arrangement, and to help connect them with energy assistance resources."

Here's more information on the some of the programs that are available.

• The Universal Service Fund. It offers help with energy bills by offering eligible customers a monthly bill credit, which is based on household income and energy burden. To apply call 211 or go online to use the DCAid screening tool.

• Payment Assistance for Gas & Electric. PAGE helps low- to moderate-income customers who are struggling to pay their electric and natural gas bills. To apply call 732-982-8710 or go online to NJPowerOn.org.

• Low Income Home Energy Assistance Program. It helps income-eligible residents with their heating and cooling bills. To apply call 211 or go online to use the DCAid screening tool.

David P. Willis: dwillis@gannettnj.com

This article originally appeared on Asbury Park Press: NJ utilities: Start paying up or lose gas, electricity after March 15