New Laws: Protecting Customers from Utility Shutoffs

Warrenton at sunset

Warrenton, Virginia at sunset. Photo by Hugh Kenny

How Are Virginians Impacted By Utility Disconnections?

Access to water, gas, and electricity is essential for human health. Virginia has over 50 water and wastewater utilities, 8 gas utilities, and 33 electric utilities, each with its own consumer protections and regulatory oversight. While this regulatory structure helps utilities meet their customers’ unique needs, it also means that vulnerable low-income households can be unfairly subject to different consumer protection policies. This challenge means that clean water and the ability to light, heat, and cool a home are not always guaranteed for Virginia’s most vulnerable households. 

Lower-income households spend a disproportionate amount of their income on energy bills. When unable to meet these expenses, they risk disconnection from essential utility services. Disconnection can lead to additional costs like reconnection fees, security deposits, paying outstanding bills, or facing late charges and penalties.

Previously, utility companies could shut off power or water, regardless of how hot or cold it is outside or how soon their power may be restored for households that can’t pay their bills. In January and February 2023 alone, there were 69,640 utility disconnections in Virginia, cutting services off for those in the most need of essential utility services. Extreme weather conditions worsen this vulnerability with heat-related illnesses already hospitalizing 2,188 Virginians since May of this year.

Recognizing the urgent need to protect vulnerable populations from this unnecessary hardship, the General Assembly passed the Emergency Utilities Protection Act, which will prevent utilities from shutting off power during extreme weather. On July 1st, this action went into law.

Specifically….

HB 906/SB 480 : (Del. Irene Shin/Sen. Lashrecse Aird) Prohibits utilities from cutting service for non-payment in the following circumstances: 

  • When temperatures are 32F or below, or 92F or above
  • On Fridays, weekends, state holidays or the day before a state holiday.
  • For 30 days after the governor declares a public health emergency.

How Will These Protections Reduce Energy Burdens For Vulnerable Households?

The Emergency Utilities Protection Act ensures clear communication between utilities and customers by:

  1. Providing utility disconnection policies in English and Spanish.
  2. Requiring utilities to provide notice before disconnecting service
  3. Informing customers of payment options and assistance programs.

These protections will put Virginia on par with other states. Prior to this law being instated, Virginia was one of only seven states in the U.S. without shutoff protections for extreme weather and had the weakest protections in the south.

Frontline communities, the elderly, children, and people with medical conditions or disabilities have historically suffered the most from utility shutoffs. Enduring legacies of structural racism mean that energy burdens are also disproportionately felt by households of color. Virginia’s new protections help alleviate this disparity, allowing the law to further environmental justice initiatives as well.  Low-income Virginia households spend on average 14% of their income on energy costs, compared to 4% for middle-income households. This disparity means that low-income Virginia residents spend proportionately more on energy, but benefit less from this investment because they are more likely to lose access from one missed payment. The Emergency Utilities Protection Act works towards ensuring that vulnerable residents will receive the energy they need during critical times.