Mon 19 May 2008
From the Star Ledger:
Electricity prices are a turnoff for many
With the economy in a tailspin, more people are finding they must choose among necessities. For many, that means going without electricity.
The number of utility shutoffs in New Jersey due to lack of payment rose by 15 percent last year, jumping to 175,581 from 143,300 in 2006, according to the state Board of Public Utilities. An additional 20,316 households had gas service terminated in 2007, about the same number as the year before.
“Electric bills have shot through the roof,” said Jim Dierterle, state director for AARP, the senior-advocacy group. “The double-digit increases for the past three years has pushed lower-income folks to the point where they can no longer pay their bill in full.”
And with customers facing yet another sharp increase in electric bills next month, consumer advocates said it is likely the volume of shutoffs will jump once again.
“The crisis is going to worsen as some folks will have to make difficult choices between keeping their lights on and buying food,” said Jim Jacob, executive director of NJ Shares, an organization that helps people in need pay their heating and electric bills.
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Since 2002, the cost of electric power in the state has more than doubled for residential customers, going from 5.06 cents per kilowatt hour to 11.3 cents, effective June 1.
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The financial stress felt by many families is straining resources of the few programs designed to help the needy keep the lights on, advocates and state officials said.NJ Shares is a nonprofit that provides one-time grants of up to $1,000 — $700 for gas, $300 for electric — to customers who need temporary help and who previously demonstrated good faith in paying their monthly bills. Last year, the program helped more than 8,100 families, said Jacob, the group’s executive director.
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This year is shaping up to be the heaviest for applications since NJ Shares was founded in 1998, he said. In the first three months, the group received 4,400 applications. The agency expects to help about 8,000 households this year, but that still leaves up to 18,000 households in need, he said.