OK regulators approve moratorium on utilities collecting unpaid bills

 

Oklahoma Corporation Commissioners on Thursday came out in support of a proposed order regarding moratoriums by utilities from collecting unpaid bills as a result of the COVID-19 pandemic. They support the moratorium but also say utilities at a later time should be allowed to attempt to collect bad debts.

By a 3-0 vote, the commission adopted the order as written by the Commission’s Public Utility Division Director Brandy Wreath and reported on earlier this week by OK Energy Today.

The order will allow utilities at a later date to possibly collect and recover costs caused by the pandemic. A spokesman for Attorney General Mike Hunter said the AG has no objection to the order and called it an “adequate safeguard.”

“The Attorney General believes the application is fair,” said Jared Haines. Chief Assistant Attorney General, Utility Regulation.

The order also had the support of the Oklahoma Industrial Energy Consumers group whose Executive Director is Thomas Schroedter. He said the OIEC certainly supports the moratorium on disconnects and spoke also in favor of allowing utilities to collect on bad debts at a possible later time.

“However we need to consider and avoid awarding a bad debt profit to a utility,” he cautioned the commissioners.

In his prepared testimony, Wreath explained there should be steps taken by regulators to make sure utilities aren’t adding to rate requests without ensuring efforts were made to collect on bad debts.

“Ensure only COVID-19 related bad debts and associated expenses are included,” he wrote, adding, “Develop the appropriate recovery period on a company-by-company basis.

Commission Chairman Todd Hiett also asked fellow commissioners Bob Anthony and Dana Murphy to support a draft of a letter in opposition to proposed federal legislation mandating moratoriums on utilities in the collection of unpaid bills caused by COVID-19.

The National Association of Regulatory Utility Commissioners, led by its President Brandon Presley oppose the Take Responsibility for Workers and Families Act, H.R. 6379, stating that states should have jurisdiction over such actions.

“While the congressional desire to assist customers by curtailing utility collection and disconnection actions during the health and economic crisis brought about by COVID-19 is laudable, we strongly urge that you not impose prescriptive federal mandates on state-regulated utilities,” Brandon Presley, president of the National Association of Regulatory Utility Commissioners (NARUC), wrote to congressional leadership on April 20.

Commissioners agreed they oppose the bill but disagreed on the wording of a letter Hiett wants to send to Oklahoma’s congressional delegation.