EWEB's low-income program goes begging.

Byline: Scott Maben The Register-Guard

The Eugene Water & Electric Board couldn't give away enough money last year to help customers cope with rising power costs.

A special fund intended to help people pay their electrical bills ended the year with a $1 million surplus - an unexpected outcome that may bring changes to loosen some of the program's purse strings.

The excess money stemmed from delays in distributing the money, limited public awareness and reluctance by some customers to seek help, EWEB officials said.

The utility also may have overestimated the size of the need and is re-evaluating the program, though EWEB plans to fund it for now at the same level unless budget concerns require cutbacks, managers said.

The utility set aside $2.5 million last year to help its low-income customers, anticipating that the worsening economy, high unemployment and rising rates would make more people fall behind on their payments.

The money - eight times more than the year before - came from a 36 percent rate increase EWEB approved in October 2001.

About 70 percent of it went to the Energy Share program that allows one-time credits of up to $300 per household - one of the largest assistance programs offered by a Northwest utility.

EWEB predicted it could help at least 6,000 households last year through Energy Share. Instead, about 4,200 households in Eugene, unincorporated River Road/Santa Clara and the McKenzie River Valley received the aid.

That happened in part because EWEB got the program off to a slow start, which limited the amount of help available during the coldest months of the year, said Energy Share coordinator Gaylene Glidewell.

"If we had been able to get it up and running and give this money out before we did, we would have been able to meet a lot more of the need," Glidewell said. "The wheels of bureaucracy move slow."

The expanded program didn't fully begin until March as the utility grappled with legal questions about how to distribute the money.

As a result, assistance remained tight and the annual household cap stayed at the previous level of $150 for the first few months of the year.

"When you try something for the first time that radically changes the dynamics, you're not sure what's going to happen until you do it," said Charles Dalton, EWEB's customer relations manager.

On the advice of its lawyers, EWEB restricted use of the $2.5 million to only cover relief from electric rates.

The utility can't use it to help people offset water rates or city sewer and stormwater fees, or to pay deposits that often prove a hardship for those with bad credit or a history of missed payments.

"If we would have been allowed to pay for those things, I think a lot more money would have gone out the door," Dalton said.

Customers need to ask for help

Karen Carter of Eugene tapped into Energy Share for the first time this month.

Carter, 56, has been out of work for months and is battling multiple sclerosis. She lives alone and is struggling to stretch her unemployment checks to cover the costs of her medicine, rent, car payments and meals, which lately have consisted of ramen noodles.

As she has several times, Carter fell behind on paying her utility bill. EWEB notified her it would disconnect her service if she didn't pay the $436 due on her account by Tuesday evening.

"They've threatened to turn off my power before, but I was able to come up with the money because I was working," she said.

This time, Energy Share and another aid program came to her rescue after an acquaintance pointed her to the help.

Many other eligible customers would get assistance if they just asked, EWEB officials said.

Thousands of customers may be late with their payments at any given time, but the utility doesn't know why - or who may qualify for help - unless it hears from them, spokesman Lance Robertson said. Past-due notices ask customers to call EWEB to make payment arrangements, and those who do often get steered toward Energy Share or other local sources for aid, he said.

"Even if they think they're going to get behind on their bill, one of the first calls they should make is to us," Robertson said.

Dalton said he believes too many customers are too embarrassed or proud to take emergency aid.

"They tried to tough it out on their own without asking for help. But since the economy has gotten much worse, we are seeing more of those people," he said.

The people who are getting money through Energy Share no longer fit a typical profile, said Glidewell, who runs the program for EWEB under a contract with St. Vincent de Paul Society of Lane County.

"Yesterday, I had a stock broker in here in a business suit," she said. "They're all over the board, and it's going to get worse."

Board guessed at scope of need

But last year's $1 million surplus has EWEB wondering if the supply exceeds the demand.

When EWEB commissioners voted in October 2001 to dramatically increase low-income aid, they were making a crude guess about how many people would need help. The board figured $2.5 million a year might be enough to help roughly half of the households in the utility's service area at or below the poverty line, Robertson said.

"Obviously there's a demand to help people who are at the lower end of the economic spectrum," he said. "There's no question people need help. I guess the question is were enough people in trouble with their electric bills to the point they qualified to get money from us or someplace else."

The answer may emerge later this year as EWEB looks at streamlining Energy Share and its other low-income programs. Dalton is looking for an outside consultant to evaluate the assistance programs and recommend an appropriate mix of services and funding levels.

One change could be the addition of a crisis component to offer extra relief to households that, for example, face a costly medical emergency or other unexpected hardship, he said.

Some utilities, including the one in Tacoma, Wash., offer a lower rate for low-income seniors.

EWEB also could do more to inform customers what help is available and how to get it, Dalton said, while others may need to be convinced it's OK to ask for the help when times are tough.

Complicating matters, the commissioners may prune the energy assistance money this spring as they rebalance EWEB's budget to help offset higher wholesale power costs and lower-than-expected revenues from hydropower generation. The more the utility cuts the budget now, the less it will need to raise rates this summer.

If financial forecasts continue to worsen, managers plan to propose cutting $500,000 from this year's low-income assistance fund.

But Dalton said he sees no trouble spending all $2.5 million of assistance money this year. Even with the mild winter, more people face pressure paying their bills as a result of budget cuts, layoffs and power costs that continue to rise, he said. EWEB is considering raising electricity rates again June 1.

"I'd be reluctant to reduce the money until we have a comprehensive analysis," Dalton said, "because we'd just be making another knee-jerk reaction."

Although all programs will be examined for possible cuts, Commissioner Ron Farmer said, "I think it's unlikely we would reduce our commitment to low-income assistance this year."

CAPTION(S):

Karen Carter is without a job and has fallen behind in her electricity payments. Eugene Water & Electric Board was going to cut off the power to her rental house Tuesday, but the utility was able to help her with vouchers and set her up with local charities to help with the payments. "Last night, I cried and I cried, I just couldn't sleep," she said. "I cried again today when I found out I wouldn't lose my electricity." She is hugging Samantha, one of five cats she owns. ENERGY ASSISTANCE Energy Share: Call 689-6747 Other EWEB programs: Call 684-5821 Federal aid: Call 682-3835 Please turn to EWEB, Page A12 EWEB: Needy no longer fit profile Continued from Page A1 E n e r g y a s s i s t a n c e