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Heating Assistance Program Re-Authorized

INDIANAPOLIS

The Universal Service Fund Program has assisted struggling customers of Citizens Gas, Vectren and NIPSCO for the past six years by providing a discount on their monthly bill, extra help in hardship cases and, in the case of NIPSCO, lump sum payments to help with deposits.

Earlier this year, the program expired eliminating the assistance for over 50,000 Hoosier households, alarming consumer organizations United Senior Action, Citizens Action Coalition and AARP Indiana who all joined the effort to get the program renewed.

On Wednesday, November 18, 2009, the assistance program was re-authorized by Indiana’s regulatory authority overseeing the program. Of concern is that it was reauthorized with some significant conditions. 1) the utilities have to contribute 25% of the cost; 2) the money cannot be used for deposits; and 3) the programs will run through the final order in the next rate case and the utilities need to seek reauthorization in a base rate, which need to be filed by October 31, 2012.

Under statute, some or all of the utilities may walk away if they decide not to meet the new conditions.

For more information about this issue, contact Michelle Niemier at 1-800-495-0872.

For the IURC press release announcing the re-authorization of the Universal Service Fund, click here.

 

Governor Daniels Fires IBM Over Welfare Privatization Contract.

 

Indiana Governor Mitch Daniels has announced his decision to cancel the state's $1.34 billion contract with the IBM-led coalition of private contractors that privatized the state's welfare eligibility system.  The expensive privatization experiment was riddled with problems that resulted in thousands of qualified Hoosiers being wrongly denied Food Stamps and Medicaid benefits.

Daniels' decision follows calls from several advocacy groups, including United Senior Action, to cancel the contract and rebuild the state's welfare system.  Jim Wallihan, President of United Senior Action, is quoted in The Indianapolis Star this week as saying, "That experiment is now a $1.34 billion failure."

Finally, the Administration has seen the widespread denial of services as more than simple "glitches," the term former FSSA Secretary Mitch Roob used to define problems raised by advocates over eighteen months ago. But, United Senior Action officials warn that much work is yet to be done if Indiana is to have a human service delivery system that places quality, efficiency and family needs as top priorities.

 

Heating Assistance for Over 50,000 Hoosiers Threatened.

September 18, 2009

INDIANAPOLIS - The Universal Service Fund Program has assisted struggling customers of Citizens Gas, Vectren and NIPSCO for the past six years by providing a discount on their monthly bill, extra help in hardship cases and, in the case of NIPSCO, lump sum payments to help with deposits.  Earlier this year, the program expired eliminating the assistance for over 50,000 Hoosier households.

The program is considered an “alternative regulatory plan” under Indiana law and, as such, must be approved by the Indiana Utility Regulatory Commission (IURC).  The three gas utility companies have filed an expedited request for renewal with the IURC.  Consumer organizations United Senior Action, Citizens Action Coalition and AARP Indiana have all joined the effort to get the program renewed before this coming winter heating season by becoming legal intervenors in the case.

“No one wins when someone’s heat is shut off,” stated Michelle Niemier, USA executive director.  “This is another example of an issue which not only affects USA members but thousands of Hoosiers of all ages and abilities.”

Recently, and partly in response to the efforts of United Senior Action, the Office of the Utility Consumer Counselor came out in favor of renewing the program.  Testimony on the issue was heard by the Indiana Utility Regulatory Commission recently. The Commission's decision on renewal is expected sometime before the end of the year.

For more information about this issue, contact Niemier at 1-800-495-0872. •

 

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