Norwich Public Utilities proposes 10% discount for low-income residents
Sep. 16—NORWICH — Norwich Public Utilities could become the first utility in the state to offer a discounted electric rate to customers in low-income brackets with deeper discounts proposed for families who agree to an automatic payment system.
NPU administrators proposed creating a 10% discount rate on electricity for residential customers with incomes below 60% of the state median household income by family size. The proposed community assistance rate is part of the three-year rate structure proposed in August that calls for NPU electric rates to increase by 4.5% per year for the next three years.
According to an income scale provided by NPU, a single person with an income of $39,761; a couple with an income of $51,996 or a family of four with an income of $76,465 would qualify for the discount. Customers would have to apply for the new program, and NPU has partnered with the Thames Valley Council for Community Action to receive and process applications for customers.
The Norwich Board of Public Utilities Commissioners is slated to vote on the proposed new rate structure and the new community assistance rate at its 6 p.m. meeting Sept. 26 at NPU headquarters, 16 S. Golden St.
As a municipally-owned utility, NPU does not fall under the regulations of the state Public Utility Regulatory Authority, which has asked investor-owned utilities in the state to enact a discount rate for low-income residents starting in January.
NPU officials said they followed the same guidelines in proposing the new Norwich community assistance rate, which would take effect Nov. 1 if approved by the Norwich utilities commission.
The discount would apply to up to 1,000 kilowatts of usage per month. NPU Customer Division Manager Jeff Brining said the average home uses about 700 kilowatts of power per month, including those using electric heat in winter.
NPU funds a TVCCA staff person stationed at the NPU customer center, 173 North Main St. in Greeneville for 10 months of the year to accept energy assistance applications and assist customers in applying for other financial assistance. NPU is proposing to extend the TVCCA staff person to 12 months a year, NPU spokesman Chris Riley said.
NPU has estimated the discount rate could cost the utility about $1 million in annual revenue, but it expects the discount to help families keep current on electric bills. Anyone who does not remain current on electric bills would not be eligible for the discount rate.
NPU also is offering an additional 10% discount for customers who enroll in an automatic monthly payment program.
Zachary St. John, director of energy programs for TVCCA, welcomed the proposed NPU discount rate, as it would come at the same time the state has cut back funding for energy assistance. Last year, about 3,000 Norwich customers qualified for state energy assistance, St. John said.
Brining estimated about 4,000 customers, 20% of NPU's total 20,000 residential electricity customers, could qualify for the community assistance rate.
If the discount is approved by the utilities board, 26, NPU plans to launch a community awareness and education program, with media advertising, social media posts, in person at community events and through partner agencies.
Norwich Human Services Director Kate Milde said her staff and NPU officials meet monthly to collaborate on programs and issues, including expanding a program that offers matching payments to help customers pay back-due bills. The two agencies held a joint event Wednesday, attended by about a dozen customers, to explain various programs.
"We're so thrilled NPU is making another effort to help Norwich residents most in need," Milde said. "Every bit helps, and we'll continue our work together to keep the lights on in Norwich."
