Holiday Season Finds Older Idahoans Struggling With Utility Bills

BOISE, Idaho, Dec. 22, 2011 /PRNewswire-USNewswire/ -- It's the most wonderful time of the year, if you're not one of the nearly 40% of Idahoans 50 and older struggling to pay their utility bills. Two new reports from AARP highlight the issue, and AARP is urging the Idaho Public Utilities Commission (PUC) not to play the Grinch as they stand poised to rule on massive utility rate hikes affecting most state residents.

"Most Idahoans have seen their savings dwindle right along with their home values. For older residents the problem is exacerbated as their pensions and retirement savings disappear, leaving the group extremely vulnerable to any increases in their monthly utility bills," said Jim Wordelman, State Director for AARP in Idaho.  "These rate hikes are no doubt unwelcomed by the vast majority of the public and will cause hardships for some."

The new reports analyze winter heating costs for the 50+ and expenditures by older consumers and find that most of the nation's 50+ spend about 8% of their household income on their utility bills, with the expenditure presenting particular hardship on those who are 65+ earning less than $20,000.

Idaho currently has the 49th lowest per capita income in the nation, with the average Social Security check for a retiree in the state coming in at just under $1,120 a month ($13,440 a year).  And that check accounts for more than 50% of the income of two in three Idahoans, and for three in ten, it's their sole source of income. 

"Many older Idahoans on limited incomes are already faced with a tough balancing act, between soaring health care and prescription drug costs, rising gas and grocery prices, and high utility bills – any price increases in these areas will likely force that balance out of sorts," added Wordelman.

A survey released earlier this year found that over 40% of Idaho's 50+ have struggled to pay their utility bills (Voices of 50+ Idaho, http://bit.ly/gBePOb, page 12). 

The looming utility rate hikes currently before the PUC:

Idaho Power: as part of a new deal, Idaho Power is looking to sock state consumers with $34 million (down from Idaho Power's original request of $83 million) in rate hikes, resulting in the average residential consumer's bill increasing by 4.19% next year, in addition to a $1 a month increase in customer's service charge (bringing in an additional roughly $500,000 to the company per year). The deal was struck by groups which had money to intervene in the process, the utility company and PUC staff. Consumers and small businesses were left largely unrepresented. The PUC is expected to rule on this case in the coming weeks.

Rocky Mountain Power: again, as part of a "deal," the utility company is seeking to hit Idahoans with $34 million in rate hikes over two years, hammering residential consumers with an 11.31% hike in their monthly bills - 5.9% in 2012 and 5.4% in 2013 (the original request was for a one year $32.7 million increase, leaving average residents on the hook for a 7.2% increase in 2012).  The deal is awaiting approval by the PUC.

United Water: another deal, struck by the PUC, one intervener and the utility company, would have Boise area residents pay a 10.5% higher utility bill over 2 years (an 8% increase in 2012 and a 2.5% increase in 2013), as opposed to the company's original request for a 20% hike in 2012. The agreement also calls for an increase in dollars made available to help low and fixed income individuals afford their bill.  The deal is also pending approval by the PUC.

The public and small businesses, including family farms, were largely absent from the negotiations that led to the "deals" in all the rate cases, and AARP contends this  it highlights the need for Idaho to create a utility consumer advocate office to ensure the groups are always at the table.   The office would represent consumers and small businesses in utility cases, and serve as a watchdog for the groups.  Idaho is the only state in the West lacking such an office.  The Idaho Public Utilities Commission serves as an arbitrator on rate cases and regulatory issues, not an advocate, which AARP argues is much needed in Idaho.

The reports can be both be found online--Winter Heating Costs- the Burden on the 50+, can be found here: http://aarp.us/rsQHaa and A Snapshot of 2009 Utility Expenditures by Older Consumers here: http://bit.ly/tBV5Iz.

AARP is encouraging the public to continue to weigh in on the rate hike cases by visiting the Idaho Public Utilities Commission website: www.puc.idaho.gov.

AARP is Idaho's largest membership organization with over 180,000 members.

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SOURCE AARP Idaho