Utilities want to charge customers to make up for lost revenue

A group of utility companies in Indiana want to charge customers to account for revenue lost during the coronavirus pandemic. The companies say they must make up for “bad debt expenses” they face as a result of government orders and economic shutdowns. 

“(T)his COVID-19 crisis and related government orders have resulted in significantly reduced load and revenues for some utilities,” the 10 companies said in a petition filed Friday with the Indiana Utility Regulatory Commission. The companies, which collectively have millions of customers in Indiana, will need to be granted permission before charging customers. 

The companies said social distancing, business closures and restrictions on essential services are “imposing costs that are not reflected” in current rates – such as overtime, cleaning supplies and testing and temperature checks for workers. 

Indiana Governor Eric Holcomb in March signed an executive order that bans utility companies from disconnecting non-paying customers until June 4. Some of the companies had already suspended disconnections before the governor’s order, or reconnected customers who recently lost service without any additional fees. Customers will still have to eventually pay their utility bills.

But with no end in sight for the coronavirus crisis, the companies say they need new measures to face “significant financial challenges.” 

“(I)t is unknown at this time how long the event will last, whether it will recur, or how significant the impact will be on Indiana customers and the utilities that provide them with essential services,” the petition says. The petition does not say how much customers could be charged if the companies are granted approval.

A consumer advocacy group condemned the companies’ request and said customers should be given even more time to pay their bills.

“This action is yet another example of the utilities placing profit over people,” Citizens Action Coalition Executive Director Kerwin Olson said in a statement. “What Indiana should be doing is protecting Hoosier consumers by extending the shut-off moratorium and putting in place a freeze on rate increases until this economic and health crisis has ended.”

CBS News has reached out to the Indiana Utility Regulatory Commission for comment.