New York Plans Unprecedented Bail Out For Billions In Utility Debt

Cadrene Heslop

New Yorkers had unpaid gas and electric utility bills pre-pandemic. During the pandemic, the debt grew further. Now, one in every six households and thousands of small businesses have utility debt. The state is looking to pay the money owed. (source)

The utility delinquency is about $2.3 billion. New York officials are working with the National Grid and other utility companies. The plan is to bail out the delinquent households and small businesses. This deal would cover bills not paid during the COVID moratorium on utility shutoffs. (source)

How does the state plan to address this issue?

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The utility companies have agreed to continue providing services until September 1. There are many possible outcomes from the talks with the state Public Service Commission (PSC). What is one such result? Higher utility rates for everyone in New York. As New York blocked service terminations; and, providers did not forgive the bills. (source)

Now, gas and electric shutoff loom across the city. To prevent lock-offs, the PSC approved a plan to pay off overdue bills totaling $587 million. This debt belongs to low-income customers. But there are consequences for this cost coverage. On August 1, all utility customers will pay a small surcharge. (source)

But low-income families do not account for most of the $2.3 billion debt. Other residential consumers and small businesses account for three-quarters of the outstanding amount. (source)

The second phase of the city's plan aims to help the other struggling citizens. The PSC has not decided if it will pay off all or a part of the sum. (source)

What do you think?

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*Disclaimer: This article is for informational purposes only. This article got written using accredited media reports.* *Advice Disclaimer: This article should not be considered professional financial, delinquency, debt management, or legal advice. The article and the information contained herein are not intended to be a source of delinquency advice, debt management advice, or credit analysis concerning the material presented, and the information and/or documents contained in this article do not constitute delinquency, debt management, money, life choice, or financial advice. The ideas, numbers, and strategies should never be used without first assessing your own personal and financial situation, or without consulting a life coach or financial professional.

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