Utilities Cut Off to 1 in 20 US Households in 2007

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World Socialist Website - Utility service was cut off to 1 in 20 households in the US in 2007, and 1 in 5 were behind in their utility bills, according to a survey released Wednesday. These figures portend a dire situation for the current heating season as families struggle to cover expenses under the impact of the deepening recession.

The survey was conducted by the National Association of Regulatory Utility Commissioners (NARUC), a non-profit organization of state utility regulators. Results were compiled from statistics submitted by utility commissions in 41 states and Washington, D.C. It is the largest sample size ever analyzed by the organization, and covers roughly half of all US households.

The termination of gas or electric service to a household spells extreme hardship, with families and individuals forced to go without heat, hot water, lighting, or cooking facilities. Unsafe methods of coping with the lack of power—including the use of space heaters, candles, and the rigging of unauthorized connections—pose a risk to health in the form of poor nutrition and sickness and the danger of fire and asphyxiation. House fires resulting in death are the most tragic outcome and a frequent occurrence in the US.

More than 5.7 million US households had their electricity terminated in 2007, accounting for 4.7 percent of all electric customers. Of these, 1.9 million—or 33 percent—did not have service restored in the reporting year.

Gas service was cut off to 3 million customers in 2007, a termination rate of 5 percent. This rate was double the 2.5 percent cut off in 2001. More than half of these customers—or 55 percent—were unable to have their service restored during the year.

Some households rely on one utility company to provide both gas and electric service. Of these customers, 3.8 percent had both services cut off and 33 percent of these were not able to have their service restored that year. Such customers are denied even the unhappy choice of keeping one utility on at the expense of the other. If they are unable to pay their entire combined bill, their services are terminated.

This was the case in the house fire that killed three young children and their aunt on October 22 this year in Highland Park, Michigan. Energy giant DTE, which supplies both gas and electricity to the city, had suspended utility service to the home. It is likely that the use of some unsafe heating or cooking method caused the deadly blaze.

The rise in utility shutoffs has been accompanied by a steep rise in past due payments to the utility companies. In Illinois, for example, 550,184 out of 2.9 million gas customers were past due on their gas bills as of May 1, 2008, owing a total of $242,530,279. This was double the amount owed by past due customers just seven months earlier. Many other states face a similar situation.

Utility shutoffs are certain to increase as more and more cash-strapped households are forced to choose which bills to pay, and which to put off, often to avoid being late on mortgage payments. US foreclosure filings climbed 28 percent in November compared to a year ago. According to RealtyTrac, which tracks foreclosures nationwide, 1 million homeowners may be forced from their homes next year.