Utility Arrearage Management
(Forgiveness) Programs

Utility companies have been rolling out their new arrearage management programs (AMPs) since late summer and into the fall/early winter.  All of the companies had previously been running AMPs for the past 2 or 3 years, but on a much smaller, pilot basis.

Every company (with the exception of the municipal light plants) is now offering full scale AMPs.   At some companies, any customer service rep can help the customer enroll.  At other companies (NGRID, for one), they have designated AMP specialists, but the customer service rep should be able to forward the call to the specialist. While the details vary from company to company, most are fairly similar to the NSTAR announcement below.

 

NSTAR Arrearage Managment Program

NSTAR is pleased to offer a new Arrearage Forgiveness Program for qualified customers.  This program was designed to assist customer with managing their past due gas and/or electric bills.  NSTAR will forgive past due balances over a period of time if customers pay a budgeted bill each month on time.

How the program works:

• Must have an active utility account.
• Applicant must be customer of record.
• Applicant must be on NSTAR’s discount rate*.
• The account must have outstanding NSTAR arrears with a minimum of $300 and sixty (60) days past due.
• The monthly payment amount will be estimated based upon past usage and bill amounts.
• In the event customers apply and qualify for fuel assistance, NSTAR will reduce the monthly budget by the amount of benefits received.
• Every month NSTAR receives a payment by the due date, NSTAR will forgive a portion of the past due balance.  NSTAR will continue to do this until the arrears are paid.

For example:

Customer has outstanding balance of $1000
Average monthly bill is: $50
Customer pays monthly payment of: $50
Arrearage Forgiveness Program Pays: $100

*Those currently ELIGIBLE for fuel assistance, or RECEIVING one of the following benefits, may be eligible for NSTAR's Discount Rate:

• Supplemental Social Security Income,
• Transitional Aid to Families with Dependent Children,
• Emergency Aid to Elderly, Disabled and Children (EAEDC),
• SNAP/Food Stamps,
• MassHealth Basic, Standard, Essential, Prenatal, Limited, Senior Buy-in or Buy-in,
• Low Income Home Energy Assistance (LIHEAP)**,
• HeadStart**,
• Free/Reduced School Lunch or Breakfast Program**,
• Mass Veterans Benefits**,
• Dependency and Indemnity Compensation for Surviving Spouse or Parents of Veterans**,
• Improved Veterans Disability Pension**.

**Eligibility letter required.

How to enroll:

Customers can sign up for the program by calling one of our highly trained call center representatives.  The contact number is 1-866-315-2496.  Representatives will explain the program in detail making sure customers fully understand the program before enrollment.For more information please visit http://www.nstaronline.com/residential/financial_assistance/

Since these programs are so new, the National Consumer Law Center is interested in monitoring them; please them know if your clients encounter any problems (contact Charlie Harak)- 617-542-8010. 

-Adapted from: “Sccessing (sic) Arrearage Forgiveness Programs at various companies” e-mail, Utility Network listserv, Charlie Harak (National Consumer Law Center), February 05, 2010; “RE: Arrearage Forgiveness Programs at various companies”, e-mail, Utility Network listserv, Charlie Harak, February 04, 2010and “Summary of NSTAR Arrearage Forgiveness Program”, e-mail, Utility Network listserv, Erin Kelley, February 03, 2010.

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