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Seniors Get Help With Heating Bills The State Diverts $965,000 to Pay Overdue Balances and Reconnect Gas Service.

Posted on: Tuesday, 10 January 2006, 18:00 CST

By VICKY ECKENRODE

ATLANTA -- A day after Gov. Sonny Perdue announced plans for a slight break on Georgians' natural gas bills, state utility regulators moved to help elderly residents facing the start of winter without heat.

The Public Service Commission on Tuesday decided to divert nearly a million dollars from a consumer education program to grants that will help pay overdue balances of low-income seniors so that their natural gas service remains connected.

The $965,000 was part of an agreement reached earlier this year for Atlanta Gas Light to use some of the money it collects from natural gas customers throughout the state. It was to be divided up for materials, such as brochures, radio advertisements and outreach activities informing consumers about energy assistance programs and conservation tips.

Instead, the money will go toward keeping some seniors' heat systems flowing in light of unprecedented increases in natural gas costs.

"If we know that we've got individuals disconnected, the first step is to get them reconnected to the system," Commissioner David Burgess said. "The immediate need is really to get people back on who have been off many for several months now."

AGL estimates that about 1,900 low-income seniors, meaning they are 65 or older and have a household income of less than $12,000, have had their service disconnected in the past year.

Right now, if low-income seniors are disconnected from any of the natural gas marketers in Georgia they can move to SCANA, the state's regulated provider, without having to pay a deposit or their outstanding balances. But if they continue having problems meeting their bills, they move into a group charged higher rates because of their increased risk, and they can still be disconnected.

It's that group of seniors the PSC is trying to reach with Tuesday's decision.

Commissioner Bobby Baker suggested using a $500 cap in one-time grants to help as many seniors as possible stay afloat. He said that if a person's back payments exceed that amount, the case can be considered on an individual basis.

"You've got a finite amount of money," he said. "What you want to do is help as many deserving people as possible."

State utility regulators had mixed reactions to Perdue's announcement Monday that he would push to cut the state sales tax in half on all residential natural gas bills between January and April.

The break would apply only to the gas commodity portion of bills and not on the taxes levied on fees and distribution costs -- saving customers $2 for every $100 they are charged for gas a month.

The proposal, which the General Assembly still needs to approve, would also temporarily cut in half the tax collections for liquid propane used in residential heating.

Commissioner Stan Wise said that despite talk that the General Assembly might lean toward suspending the entire 4 percent sales tax, he welcomed the governor's plan.

"I think anytime you can lower the energy bills in this state, I'm for it as a consumer and as a regulator," he said. "I think the governor has heard the message loud and clear."

Commissioner Doug Everett pointed out that other residents also are seeing increases in their heating bills, though the jumps in natural gas have been the most dramatic.

"It's a very small amount, and it goes to everybody, but everybody's not on natural gas," he said. "I'm glad that people are going to get a little bit of help on the propane and natural gas service but what about those who have electricity only?"

Meanwhile, members of the assembly's Democratic Caucus on Tuesday afternoon expressed "profound disappointment" with Perdue's sales tax plan.

"[Perdue's] Executive Order is too little," said Senate Democratic Leader Robert Brown of Macon. "To order the reduction of natural gas taxes by only 50 percent when the state is reaping a financial windfall on soaring prices is a slap in the face of hardworking Georgians. We've become accustomed to Gov. Perdue dismissing our energy proposals for political gain, but the current leadership vacuum is astonishing."

Brown called for a suspension of the entire 4 percent sales tax, as well as financial assistance to protect disabled residents, low- income families and families with small children from natural gas disconnection in addition to elderly customers.

He also said that Democrats have pushed for the state to have more than just one regulated provider. But when the PSC asked for bids on the designation earlier this year, SCANA was the only company in the state that responded as being willing to cover the customers with debt problems.vicky.eckenrode@morris.com, (404) 681- 1701

Source: Florida Times Union

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