Oct 14, 2008 11:23 pm US/Central
How To Keep The Heat On, Even If You Can't Pay
(WCCO)
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When the cold weather rule is in effect from Oct. 15 through April 15, customers can pay with more flexible plans to keep their power on. Those plans are decided between the customer and the company.
AP
Starting on Wednesday, the cold weather rule goes into effect across Minnesota. The law was established in 1974 and is intended to offer some flexibility for customers who fall behind on their energy bills. It does not mean people's heat will always stay on during the winter months.
"Quite often we're hearing from people who think its winter and they can't shut me off. That's the biggest myth out there is that it's a complete moratorium once we get to Oct. 15. That's not true," said Tracy Smetana, a consumer affairs mediator with the Minnesota Public Utilities Commission.
Smetana said the power company can disconnect you during the wintertime if it follows the proper procedure. Once the customer falls behind on payments, it's up to both the customer and company to take action. The company must notify the customer about the cold weather rule and possible payment plans.
"They get multiple notices and then we actually knock on the door before we disconnect and talk to the customer to avoid disconnecting the service," said Becca Virden, a spokeswoman for CenterPoint Energy.
On the other side, the customer must contact the power company and set up a payment plan. They need to keep with that payment plan to avoid disconnection.
Xcel Energy estimates 1,500 of its customers are disconnected. CenterPoint Energy, a larger natural gas provider, estimates 15,000 customers are disconnected across the state. Virden said 11,000 of those are still disconnected from last winter. Both companies said some of those homes are now vacant.
During the summer months, customers must pay in full to have their power restored. When the cold weather rule is in effect from Oct. 15 through April 15, customers can pay with more flexible plans to keep their power on. Those plans are decided between the customer and the company.
Electric reconnection fees for Xcel are $10. The Xcel natural gas reconnection fee is $16 to $17. The CenterPoint natural gas reconnection fee is $22.50. These fees cannot be waived and are added to a customer's total bill.
According to the cold weather rule, customers who earn at or below 50 percent of the state median income are not required to pay more than 10 percent of their monthly household income each month towards their heating bill.
Customers who earn more than 50 percent of the state median income must make a payment plan with the utility. Smetana said if you think you can't make a payment, call the company in advance.
"The best thing to do is call the company and say, look, a situation came up. My car broke down and I couldn't get to work for a week. Whatever the case might be to let them know you're not going to make the payment you agreed to and talk about what plan you can make to make up for that," she said.
For a family of four, half of the state median income would be equal to about $40,000.
If a customer and a power company cannot come to an agreement on a payment plan, the customer can appeal with the Minnesota Public Utilities Commission. Last year, the PUC mediated more than 200 appeals.
All natural gas and electric utilities must follow some level of the cold weather rule. Propane, fuel oil and wood are not covered under the law.
Wisconsin 's law is a little different where consumers cannot be disconnected between Nov. 1 and April 15 as long as they are paid up and connected at the beginning of November.
More information about the cold weather rule is available on the Public Utilities Commission Web site. More information on energy assistance is also available on the Minnesota Department of Commerce Web site.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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