Concerns are mounting as the April 15 deadline for ending the energy shutoff moratorium nears. With more than 93,000 Wisconsin households facing possible disconnection, residents who are behind in their utility payments and have not set up payment plans should act now.
“None of WE Energies' customers are going to be disconnected on April 15,” Brendan Conway, WE Energies spokesperson said. “That’s not how it works. Our goal all along has been to be flexible and work with customers. At the end of the day, we do not want to disconnect people. Even if someone reads this and says ‘that's not me, I’m too far behind,’ they should still call us. We will work with you,” Conway said.
To avoid disconnection, customers who have fallen behind on payments are encouraged first to contact WE Energies at (800) 842-4565 to set up a payment plan. Utilities are required to offer a Deferred Payment Agreement (DPA) to residential customers who cannot pay an outstanding bill in full. If customers cannot reach a payment agreement with their utility, they may contact the PSC by calling 1-800-225-7729, or file a complaint on the PSC website. For more information about utility disconnections and collections, see the PSC's fact sheet on residential customer rights.
Work it Out?
Conway said that sometime later in April, a small group of people who are significantly behind in their bills, will receive a letter asking that them to contact WE Energies so that they can work with WE Energies to avoid disconnection. He said that WE Energies will send letters and follow up with phone calls. “If a customer contacts us and sets up a payment plan, no matter how much they owe, they will not be disconnected,” Conway said, adding that in March alone, 12,000 people called WE Energies to set up payment plans.
He said a down payment amount is required to get on a payment plan but during the pandemic the down payment amount has been reduced to 10% of the total owed, and WE Energies has also extended the time for repayment. He said that if anyone could not make the down payment amount, WE Energies would connect them with resources that could help. “More people than ever are eligible for heating assistance,” he said.
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Milwaukee County’s Energy Assistance Program provides qualified Milwaukee County residents with a one-time, annual payment toward heating and electric bills. The funding pays a portion of energy costs determined by household size, income and energy costs. Call 414-270-4653 to schedule an application appointment or call 2-1-1 24/7 to get phone assistance with scheduling appointments. View the program flyer here.
High Energy Burdens for Black, Hispanic Milwaukeeans
The pandemic has deepened the economic challenges that Milwaukee's low-income residents face. A new study from Sierra Club Wisconsin found that households in predominantly Black, or Hispanic neighborhoods spend 7-10% (or more) of their income to cover energy costs. “Energy Burden” is the term for the percentage of income spent on energy.
“This is a long-standing problem, and the pandemic has further revealed the structural inequities,” said Elizabeth Ward, Sierra Club Wisconsin Chapter Director. “This is one example of how much work we have to do in order to meet the commitment to equity and justice that Governor Evers has said we have to make.”
The study estimates that 85,000 people, or roughly 6% of the Milwaukee metro population, live in high energy burden census tracts with an average energy burden of at least 6%. It also finds that while 16% of Milwaukee’s metro population is Black, 65% of residents of high-burden neighborhoods are Black; and while 11% of the metro area population is Hispanic 21% of the population who live in high-burden neighborhoods are Hispanic. The neighborhoods with the highest energy burdens correspond to formerly redlined neighborhoods. By contrast, . households in well-off white neighborhoods may have an average energy burden of 1% or less.
The study cites a 2016 ACEEE report which references household-level data, one in four Black families in Milwaukee has an energy burden at or above 15.5 percent, while one in four Hispanic families has an energy burden of at least 7.9 percent. The study finds that high energy burdens can force difficult choices between paying energy bills and buying food, paying rent or mortgages, or covering medical expenses.
Cooperation is Needed
The study found that addressing the energy burden problem will require a cooperative approach among public and private sector decision makers to increase investments in energy efficiency and affordability programs and in targeting these initiatives to the communities that experience high energy burdens. Utilities, local and state governments, and the Public Service Commission of Wisconsin can work together to set energy affordability goals and track outcomes in high energy burden neighborhoods.
WE Energies spokesperson Conway said that in 2020 WE Energies donated $3 million to the Keep Wisconsin Warm/Cool Fund and has donated $4 million in 2021. In addition, WE Energies contributes $46 million annually to Focus on Energy, which provides assistance to households to reduce energy costs through more efficient energy use.
Conway said that WE Energies has been working with the Citizens Utility Board on the energy burden issue and is working with the Public Service Commission on a report to better understand and address it. He adds that WE Energies’ recent decisions to close some older fossil-fuel units and build $2 billion in renewable energy—solar, wind and battery storage—will result in an estimated $1 billion savings over 20 years for customers.
“The time to act is now to not further increase the energy burden on those who can least afford it,” Sierra Club’s Ward said. "We look forward to working with leaders at the local and state level, as well as with We Energies, to find ways to address this stark disparity.”
