On October 5th, two House Democrats, Harley Rouda and Rashida Tlaib, submitted this letter to ask the director of the CDC to give a nation-wide moratorium on water disconnections due to non-payment through the state of emergency because of COVID-19. While this is at the federal scale, many individual utilities and states already declared moratoria in 2020, though some of those have expired by now (mid-October). Utilities and state and local government officials recognize the value of access to clean and safe water during the pandemic, and utilities are motivated to avoid disconnections for public health and customer service reasons, as well as to minimize the cost of operations associated with disconnections and reconnections. Still, disconnecting a customer from water service is seen as an important tool for revenue collection in the water/wastewater industry. According to data from 84 North Carolina water and wastewater utilities provided to the North Carolina Utilities Commission, an average of 13.7% of a utility’s customers were past due on their bill in June of 2019 (pre-COVID). Providing notice of disconnection or disconnection itself can be effective for encouraging payment of these late bills, but how effective they are is unclear.
August has been a key transition month for local government utilities in North Carolina as EO 124/142 (which prohibited disconnections due to non-payment for residential utility accounts) has expired, payment plans are required to be in place, and Governor Cooper just announced $175 million in relief money, including $122 million for assistance in paying rent and utility bills.
How are water and wastewater utilities across the state faring under COVID-19 conditions? We’ve been keeping track here at the EFC and though the circumstances are constantly changing, we’ve been able to assess some of the impacts of COVID-19 on utilities during the last five months.
We have just released a report funded by Division of Water Infrastructure in the Department of Environmental Quality, outlining results from a poll, analysis of the EO 124/142 data that utilities reported to the North Carolina Utilities Commission (NCUC) for the full April through July period that covered the statewide moratorium, stories of individual utilities (blog post coming soon), and an overview of our financial resiliency tool. Continue reading