Really feeling the heat
Rising temperatures, sagging economy forcing utilities to unplug customers
By Kyle Stock
The Post and Courier
The Post and Courier
An unidentified woman waiting for help at the Charleston County Human Services Commission looks over her SCE&G bill, which says her power will be cut off if she doesn't pay the $718 she owes. The commission's federal funding for utility aid was cut 13 percent this year.
Groceries or lights?
That's a question facing hundreds of people every day in South Carolina. Often, the choice is groceries.
In the first three months of this year, Duke Power, Progress Energy and Scana Corp., the owner of South Carolina Electric & Gas Co., pulled the plug on almost 39,000 homes for falling behind on electricity bills. That equates to 427 a day, according to a Post and Courier Watchdog analysis of state records.
And those numbers don't account for almost half of South Carolina households, which are hooked up to state-owned Santee Cooper, an electric cooperative or other public utilities — organizations that are not required to report disconnection statistics.
The number of disconnections has risen only slightly in recent months. However, cutoffs typically peak in October, when months of bills boiled up by summer's heat finally overwhelm household budgets.
With the economy sinking and the mercury rising fast, utilities are bracing for a growing pile of debt. And the public service groups that help Palmetto State residents make ends meet are preparing to be stretched to the limit.
"It's definitely getting worse," said Arnold Collins, executive director of the Charleston County Human Services Commission, which distributes federal aid to help with utilities. "We have a number of senior citizens whose utility bills are bigger than their Social Security checks. These people have to decide whether to pay their lights or buy half of their medication."
Hanging on
Lori Garrett works at a school cafeteria and is used to stretching her paycheck. It has to feed her three children and a grandchild, and it has to cool the family's mobile home in McClellanville. The blinds never go up and the thermostat never goes below 79 degrees. Still, Garrett's bill from Berkeley Electric Cooperative hit $269 last month, and she was warned that her power would be cut off in a few days.
Garrett qualified for federal aid and the government paid her bill, but she will not be able to line up a similar disbursement until next year. "I'm trying," she said when asked if she'll be able to keep the power on through the holidays. "I'm trying."
She expects the family budget to improve when her daughter returns to college in the fall and her son, who just graduated from Lincoln High School, ships off to the military. "I know he'll help out," Garrett said.
In all, between 1 percent and 1.5 percent of South Carolina residents have their power shut off every month.
Roughly three-quarters of those who lose service manage to get their electricity flowing again within five days, but a startling number of people have trouble keeping up with their payments: In the average month last year, 6 percent of homes served by SCE&G were behind on their power bills and slated to be unplugged.
And though disconnections increased only slightly in the first quarter of this year, there is some evidence that a growing number of residents will soon be in the dark.
The Santee Electric Cooperative, which serves 43,661 homes and business in and around Georgetown County, disconnected 1,081 of its members in April, 32 percent more than it unplugged in the same month last year.
Mike Couick, chief executive of the Electric Cooperatives of South Carolina Inc., expects to see similar spikes in coming months from outfits such as Berkeley Electric Cooperative that serve more affluent parts of the state.
"It's going to spread its way up the economic spectrum," Couick said. "People are begging and borrowing to keep their lifestyles where they are now, but that's eventually going to run out."
Safety net
While utilities crank up their power plants to combat rising temperatures, the state's sparse network of social support groups is mustering its resources to battle higher bills.
Dukes Scott, executive director of the state Office of Regulatory Staff, which acts as a consumer advocate on utility-related issues, said almost twice as many people this year are asking his agency for financial assistance or help negotiating a reprieve from their utility.
"If one person gets disconnected, we view it as a problem," Scott said. "It's more than what we would like to see, I can tell you that much."
The Charleston County Human Services Commission, which handles all of the county's federal aid for utility bills, will have more trouble making ends meet this year. It was granted $871,079 in federal energy assistance in 2008, 13 percent less than last year and roughly half the amount doled out in 2006, according to Tami McCrackin, director of the nonprofit's outreach program.
"I'm guessing it will run out by the first of November at best," McCrackin said. "We could probably spend three times what we have every year."
With disbursements capped at a one-time subsidy up to $300, the Charleston County Human Services Commission will be able to help almost 3,000 households this year. In a busy week, the nonprofit will field calls from close to 1,500 people who can't pay their power bill.
Helping out
Pulling a plug is not as easy as it used to be for utilities. Disconnection rules were tightened four years ago after an 84-year-old woman froze to death in her Greenville home. Power companies no longer can cut electricity during storms or when temperatures drop below freezing. From December through March, South Carolina utilities must afford a 30-day reprieve for residents who have a doctor's note saying a lack of electricity would pose a health threat.
Utilities also are required to send customers two notices in the 10 days before terminating service.
April Sharpe, head of the consumer services department at the Office of Regulatory Staff, said power companies have grown more lenient as the economy has weakened. They often negotiate a payment plan or grant a few more weeks on a bill. After all, unplugging a household takes time and, thus, costs money.
"A lot of it is looking at the good-faith effort that the customer has tried to make," Sharpe said. "Sometimes they really bend over backward."
Several utilities, including SCE&G, collect funds to help cover delinquent bills. SCE&G also encourages customers to provide contact information for a friend or relative who can be called if unpaid bills pile up, according to spokesman Robin Montgomery.
"Of course, the last thing we want to do is disconnect service," Montgomery said. "If they know they are going to have difficulty paying their bill, we'd encourage them to come visit us. That's the approach that we've always taken."
Chilling effect
South Carolina residents benefit from relatively inexpensive power, roughly 13 percent cheaper than the U.S. average, according to statistics compiled by the Energy Information Administration. But largely because of air conditioning, they consume more electricity per household than folks in all but four other states. Consequently, the average monthly electric bill in South Carolina is the 11th-highest in the country.
Disconnections, however, are more rare in the Palmetto State than elsewhere.
Nationwide, roughly 4.4 percent of residential customers are unplugged for unpaid bills, about four times higher than the cutoff rate in South Carolina, according to a 2006 survey by the National Association of Regulatory Utility Commissions, a trade group for government workers who preside over power companies. In the most stretched states, such as Oklahoma and Arkansas, more than one in 10 homeowners can't pay enough to keep the lights on.
Every day, electricity becomes more of a luxury good, said John Howat, an analyst with the National Consumer Law Center, a Boston-based group that lobbies and provides legal advocacy for poor people.
"We've assumed as a society in the post-World War II era that utility service should be available to everyone, but that assumption doesn't hold anymore," Howat said. "We're in kind of a new world."
Meanwhile, the debts are casting a shadow on utilities' financial results. In 2006, past-due electricity accounts in the U.S. added up to almost $1 billion, according to the NARUC survey. Howat said power companies have become increasingly aggressive in collecting those debts from delinquent customers. They are also beginning to ask for permission to gather those payments from the rest of their customers through higher rates.
"The damage runs pretty deep," Howat said. "If you threaten utility profits, there's often a change in behavior at the company. They all say they are in the public service business, but ultimately the shareholder is paramount."
Reach Kyle Stock at 937-5763 or kstock@postandcourier.com.
E-mail this story
Printer-friendly version
Comments
pirate42 (anonymous) says...
One more company that the CEO get wealthy off the backs of the working class poor... No breaks with them either Just like the Oil companys
June 23, 2008 at 7:28 a.m. ( permalink | suggest removal )
CMLMADDOG (anonymous) says...
Maybe these families should get rid of their cell phones, satellite dishes, spinner rims, etc. before I start feeling sorry for them.
June 23, 2008 at 9:12 a.m. ( permalink | suggest removal )
common_sense (anonymous) says...
Utlities that are "must have's", such as electric, natural gas, water/sewer & telephone (not cellular), should not be owned by for-profit companies, but member owned co-ops, to ensure low prices & accountability.
I'm just sayin....
June 23, 2008 at 10:03 a.m. ( permalink | suggest removal )
newto843 (anonymous) says...
Wow Gadsden, you got me thinking about my water and coffee expenses with that one. I have to say my Latte totals about 29.00 a gallon and my bottled water is less than 2.00 (Deer Park 24 pack) a gallon. I will say that now that gas is so high I make less trips for the latte so it may just be a win win.
As for SCE&G, they are not an easy company to deal with on any level when I compare them to the other companies in othere states where I have lived.
June 23, 2008 at 10:19 a.m. ( permalink | suggest removal )
algorelost (anonymous) says...
People just need to step up and make the tough decsion:
Cell Phones vs. Gas
Cable TV vs. Food
Car Payments vs. Utlities
People need quit complaining and act their wage.
June 23, 2008 at 10:57 a.m. ( permalink | suggest removal )
common_sense (anonymous) says...
Gadsden, re-read my comment. I never said have the Gov't take over anything. I said utilities shouldn't be run by "for profit" companies, who answer to shareholders, but my member owned co-ops, where the users are the owners. No mention of Gov't control there.
I'm just sayin...
June 23, 2008 at 11:43 a.m. ( permalink | suggest removal )
PalmettoHawk (anonymous) says...
Nationalization (meaning government owned) of oil and gas supplies, groceries, utilities is becoming far too attractive to the masses as everyday folk see executives rake in millions of dollars in salaries and perks. It isn't the share holders who are getting rich in most cases but those that can arrange to have golden parachutes at the end of their careers.
They'd better start looking over their shoulders, nationalization may not be as much of a stretch as others may believe. And I am no communist sympathizer nor proponent.
June 23, 2008 at 12:03 p.m. ( permalink | suggest removal )
mershadonn (anonymous) says...
I didnt have electric for over a month
I used Solar lights for the night and had a grill to cook on .I was fine . My lovely neighbors turned me in to DSS said I was KRAZY because i did this.I asked DSS why didnt you HELP ME BEFORE WHEN I ASKED INSTED OF WASTING YOUR TIME WITH ME now I AM OK , scraping bottom but I knew there ARE PEOPLE with Kids that need help .I was eligable for several programs and didnt want to get them since I knew others needed it more. I had no choice since I could not get the NINE HUNDRED + deposit to turn it back on . THEN I got a check in the mail for almost 100 .00 !!They used all my previous deposit monies that they had been holding to pay my outstanding electric and sent me a check for the overage how about that ? I with the help of the local church got it turned back on for 400.00
Daily Mantra
Cant find a job , want a job need a job .
BTW the people at SCG&E in Summerville are RUDE,Pompous
Condescending , NASTY And very unhelpful.They get off on peoples misrey. When I asked about floating my deposit over they would not let me . so they used my 800 .00 for over a year and made interest off of MY money and let me sit in the dark with all my known health Diabetes and Emphysema medical issues ...
Remember that SCANA is one of only FOUR companies in South Carolina that made a profit last year , and they are owned by Foreigners .
BTW The Cell phone issue will not fly. people need to be able to communicate
I kept my Cell phone On during this time , with help from friends , I needed it on because of medical issues and trying to find Work, setting up interviews etc . I dare any of the people that are saying about well they have cells to leave thier phones off for 24 hours and see how many important communications they miss. also it must be nice to not have to worry about that next paycheck or Tank of gas is coming from
Can I come work with you ?
June 23, 2008 at 12:13 p.m. ( permalink | suggest removal )
GoBoilers (anonymous) says...
Weakness in the dollar combined with the global commodities boom resulting from the industrial emergence of China and India have affected a dramatic rise in core inflation that further threatens our fragile economic stability.
http://www.beyondthemargin.net/2008/0...
June 23, 2008 at 12:41 p.m. ( permalink | suggest removal )
mrmachi (anonymous) says...
mershadonn - Really? No electricity but you have a cell phone? Do you have kids? If so, than yes, they should have called DSS. You need to re-evaluate your priorites. There are PLENTY of jobs that you can get without a phone. Go walk around the mall, go to McDonalds, or cut grass. And by the way, there are many times that my phone is off and things are fine when I turn it back on. Good for you on not going to the government for help, but no offense, you shouldnt have.
And gadsen, give me a break, open up a paper and look at the classifieds.
June 23, 2008 at 1:01 p.m. ( permalink | suggest removal )
mershadonn (anonymous) says...
cant work with Food , cant work outside re medical issues
no kids.. why is a phone a ""luxury" when you need that to find work, even temp work ?? need a phone to communicate with interviewers etc not gossip about people .I think keeping a phone on is one of the most important things .
Phone bills are alot less expensive then 6-800 per month electric bills !!!with Emphysema cant really be doing any physical labor and guess I am too dumb to get an office job and drink 29.00 $ a gallon Lattes,go figure. By keeping my electric off for over a month I proved to my self that not having electric would not kill me . I still got out looked for work daily . and even picked up some temp work.
June 23, 2008 at 1:14 p.m. ( permalink | suggest removal )
algorelost (anonymous) says...
Mershadonn,
How about work in sales?
June 23, 2008 at 1:28 p.m. ( permalink | suggest removal )
mrmachi (anonymous) says...
OK, so I needed a minute to take my foot out of my mouth. This, as I think Gadsen referred before, is a completely differnet story and more than fits as an "exception." I definitely agree with gadsen on your independence, I am even more amazed with how your mindset is in dealing with all of it.
June 23, 2008 at 1:33 p.m. ( permalink | suggest removal )
mershadonn (anonymous) says...
When I moved to Charleston I owned several houses.4 in Charleston and 4 in Annapolis Maryland . I was a Fat Cat Realtor,THEN could not get the houses rented here and lost them , Emphysema kicked in hard.Diabetes put me and my foot in the hospital for a week.Started pawning everything , had an auction house strip out the house {thank you Romalards} lived on that for awhile ...still was trying to get work! Social security said that if I can get out of bed I do not qualify .DSS said so so sorry Food stamps etc no because DSS has time to harrass me for no electric but does not have enough money to help me.
That which will not kill you makes you stronger. I am not a candy ass . I am a 53 years old, female with a strong work ethic. I USED to drink 29 $ a gallon Lattes and was a lady who Lunched.Since this started i have been fighting with my self respect.All I want to do is go to WORK daily , and look in the mirror at night and know i did a good job that day . Right now my job is to FIND WORK inside. clerical.with benefits so I can pay into the American dream and start over . I cant wait to get one of those 29 $ a gallon Lattes I can taste it every time I see a Starbucks .....
June 23, 2008 at 2:11 p.m. ( permalink | suggest removal )
JohnS (anonymous) says...
Cut out your cable TV and don't buy your kids brand name clothes. Get a second or third job.
June 23, 2008 at 5:34 p.m. ( permalink | suggest removal )
mershadonn (anonymous) says...
no kids no brand name clothes no cable no lights ...
car is paid for do not have ONE job.
still looking .
waiting for that $29 a gallon latte.......
June 23, 2008 at 6:12 p.m. ( permalink | suggest removal )
7green0 (anonymous) says...
It is so good to see that some people
have all the answers.
Well, that is until it's your turn.
I hope some of you never end up on the other side of this story.
I am quite sure a lot of you will become good friends with prozac if you ever do.
This thing called life can change in a flash.
June 23, 2008 at 8:29 p.m. ( permalink | suggest removal )
coolfreaknbeans (anonymous) says...
7green0 - I agree.It's so damn easy to tell people a matter of factly what they should/shouldnt do.Most people running their mouths have never experienced this.And as silly on the surface as it may seem I'd keep my phone too.How in the he!! are you supposed to get a job with no phone?And it's not like SCE&G would take $40 and keep your lights on.You'd pay them $40(in theory phone bill $)and your lights would still be shut off and then you'd have no phone or lights.(you'd just owe them 40 bucks less)Now if you owed SCE&G $40 and it'd keep your lights on thats another story.But thats not the way it works.
June 23, 2008 at 8:59 p.m. ( permalink | suggest removal )
mershadonn (anonymous) says...
Wait till next year when the SC utilities start building thier Neucler Powah plant .. think they are vacuming pockets now ? BAHAHAHAHA the average price per house is going to go up .. foreign companies will Break Americas Back . follow the dollar
June 23, 2008 at 9:49 p.m. ( permalink | suggest removal )
southerngirl45 (anonymous) says...
MERSHADONN-YOU SEEM TO HAVE A LOT OF MEDICAL PROBLEMS. HOW DID YOU LIVE A MONTH WITHOUT ELECTRICITY,HAVING EMPHYSEMA ESPECIALLY.AND I AM TO WONDER HOW YOU KEPT INSULIN REFRIDGERATED.BEING A DIABETIC SURELY YOU TAKE INSULIN.IF AND ONLY"IF" YOU REALLY WANT A JOB,HELP WANTED SIGNS ARE EVERYWHERE(JUST DON'T GO LOOKING FOR CONSTRUCTION OR LANDSCAPING)AND BY THE WAY A LANDLINE PHONE IS ONLY 16.95 A MONTH,WITH NO FRILLS OF COURSE.WITH YOUR REAL ESTATE EXPERIENCE,YOU MAY WANT TO LOOK INTO SOME REALITY OFFICE JOBS.I THANK GOD EVERY DAY,THAT I HAVE A GOOD JOB AND AM ABLE TO WORK.IF YOU ARE TELLING THE TRUTH,I SINCERELY HOPE SOMETHING GOOD COMES TO YOU,HOWEVER SOMETHING TELLS ME YOU THAT YOU ARE QUITE ENJOYING YOUR MISFORTUNE. I SEE THAT YOU HAVE THE LUXURY OF INTERNET--SO MAY I SUGGEST YOU GO TO MONSTER.COM! GREAT JOBS CAN BE FOUND THERE. GOOD LUCK TO YOU AND IF WE EVER MEET I'LL BE MORE THAN HAPPY TO BUY YOU A LATT'E.
June 23, 2008 at 9:55 p.m. ( permalink | suggest removal )
Postandcourier.com is pleased to offer readers the enhanced ability to comment on stories. We expect our readers to engage in lively, yet civil discourse. Postandcourier.com does not edit user submitted statements and we cannot promise that readers will not occasionally find offensive or inaccurate comments posted in the comments area. Responsibility for the statements posted lies with the person submitting the comment, not postandcourier.com. If you find a comment that is objectionable, please click "report abuse" and we will review it for possible removal. Please be reminded, however, that in accordance with our Terms of Use and federal law, we are under no obligation to remove any third party comments posted on our website. Read our full Terms and Conditions.
Users can now build user-to-user connections, follow friends' recent posts, add an avatar that fits their personality, and more. If you have posted here before you'll need to sign up again, or if you've never posted before, start now by signing up!
Thank you for your interest in this story. The comment thread for this article has been closed.
- Most Commented
- Most Emailed
- Shared
- Upper King on rise: Hotels, apartments, restaurants changing face of downtown area
- Missing woman case gets murkier
- Texts from missing Mount Pleasant woman's phone 'normal'
- Missing woman's fiance found dead in his home
- Magnolia Gardens offering free dream wedding to contest winner
- Body of missing woman's fiance was found near handgun
- Pinterest: Pinning hopes and dreams
- DAVID SLADE: S.C. offers hybrid car tax credit
- Facebook posts may cost you a job
- Black women today: Strong. Resilient. Ambitious.
