Spring: Time to Pay Utility Shutoff Debts

Utility shutoffs, in metro Detroit and elsewhere, are most common in spring and early summer. Protections against winter shutoffs have expired entering April, and payments are coming due.

"Call us" is the simple message from David Johnson, DTE Energy customer services director, to anyone who faces trouble paying bills and wants to avoid a utility shutoff.

An array of tailor-made assistance plans is available to DTE Energy customers, Johnson says. Some are for low-income or low-middle-income households, some are for people of any income, and some are for landlords. But for people to enroll, they must make contact.

DTE Energy is the parent company of Detroit Edison and MichCon, which serve 2.7 million customers, primarily in southeast Michigan. With the state's sour economy and a 14.6-percent official unemployment rate, which is nearly twice as high in the city of Detroit, DTE Energy's shutoff count in 2009 was 221,000. This marked a 36-percent increase over the previous year.

Johnson says DTE can't prevent all shutoffs. If someone totally loses his or her income and can't pay, or behaves in an irresponsible manner, the utility eventually will have to turn off the switch.

Still, Johnson explains that most problems occur when customers who face hardships fail to contact the utility, often because they do not realize that help is available.

"When I speak to community groups, my first point and my last point is for people to make contact with us if they anticipate problems with payments," he says. "It's best to call before the heating season even begins, but in any case, we can provide more solutions than ever before."

A utility shutoff is a lose-lose for both the customer and DTE Energy, which often cannot collect the dollar amount in arrears. By the same token, utility shutoff prevention is a win-win.

Johnson notes that DTE Energy conducts ongoing community forums. Last year, 17 forums attracted a combined 25,000 residents, including 10,000 for a single mega-forum at the Michigan State Fairgrounds on Woodward Avenue in northern Detroit.

"We have more than 30 social agencies involved," Johnson says. "In the event that DTE does not have a solution, an agency may be able to assist. And if someone is having trouble paying their utility bill, it is likely that they also are having trouble in other financial situations. Our aim is to provide our customers with total solutions."

Following are thumbnail outlines on DTE Energy's various programs for payment plans to avoid utility shutoffs. The phone number to contact is 800-477-4747 from 8 a.m. to 6 p.m. weekdays, and Saturdays from 8 a.m. to 2 p.m. There is a good chance you will be placed on hold, but eventually you will reach a customer service representative.

Programs for All DTE Energy Customers

- Shutoff Protection Plan. Twelve equal monthly payments are spread out over the year for lower payments in winter but higher payments in summer.

- United Way 211. Simply let United Way know you are looking for assistance by dialing 211.

- Credit Counseling. If you have an outstanding balance exceeding $300, DTE Energy will connect you with the nonprofit GreenPath service. A budget plan can be established for a period up to two years.

- Double-Notice Protection Plan. If you feel you may need a friendly reminder from someone other than DTE Energy, this plan will ensure that a duplicate shutoff notice is sent to a consenting friend, relative or agency. This does not financially obligate the second source in any way.

- Medical Emergencies. Shutoff may be postponed up to 21 days in a medical emergency.

- Shutoff Protection for Active Military Personnel. Shutoff protection for up to 90 days is offered.

Programs for Low-Income DTE Energy Customers

Various programs have various income maximums. Customers may feel confused by definitions such as "150 percent (or sometimes 200 percent) of the federal poverty level." Johnson emphasizes two points:

1. Some people may perceive that they are not low-income. They should know that they still may qualify. For example, a family of three may qualify for some programs with an income of $37,000, or more than $700 per week. Don't hesitate to inquire.

2. Family size is an important factor. Each household member raises the income maximum to qualify.

- Winter Protection Plan. Between Nov. 1 and March 31, you can pay a portion of the estimated annual bill. In April, required payments increase. This is an example of programs that have prevented cold weather shutoffs, while on the flip side causing an increase in April shutoffs.

- Case Management. If your unpaid balance is more than $750, you can receive credit counseling while you keep the lights on and the furnace running.

- Earned Income Tax Credit and Home Heating Tax Credit. Find a tax preparer or, better yet, call 800-477-4747 for referral to a source that will prepare your taxes for free. Even if you don't earn enough money to pay taxes, you may qualify for a check from the federal government.

- Weatherization. One of the main programs in the 2009 American Recovery and Reinvestment Act, commonly known as President Obama's economic stimulus, is insulating homes. Submit an application to the community action agency where you live.

- THAW: The Heat and Warmth Fund. This is an option for after you receive a shutoff notice. THAW may help, but then try to avoid future shutoff notices.

- State Emergency Relief Program. Cash assistance may be available for utility bills, usually on a one-time-only basis or once per year. Once more, strive to avoid future shutoffs.

Programs for Landlords

- Landlord Utility Manager. If a landlord requires tenants to pay utilities, the landlord is immediately notified if the tenant takes service out of his or her name. Meter readings for move-ins and move-outs ensure accurate billing.

- Landlord-Tenant Property Protection. Landlords are notified when tenants receive shutoff notices.