State Help Was on Way; Now, It’s Leaving Some Facing Shutoffs

WOODBINE — The Board of Public Utilities came to the aid of 14,500 households this winter, then told them it was a mistake.
Andrew Newill, 23, of this borough, received a letter from Atlantic City Electric notifying him of the Universal Service Fund USF program in the winter of 2008.
That letter stated, “Gov. Jon S. Corzine and I are pleased to inform you about your eligibility for the New Jersey Board of Public Utilities (BPU) Universal Service Fund program (USF) that will help you pay your monthly gas and/or electric bills. You are eligible for the USF based on your USF/Home Energy Assistance (HEA) application. If you receive food stamps, your Food application is also your USF/HEA application.
Newill is employed by the state at Woodbine Developmental Center as a human services assistant. His $26,000 a year salary and four children qualify his household for Section 8, a federally subsidized housing program that assists with payment of his rent. Newill in the past has relied on other programs such as food stamps to feed his family.
Newill who struggles to pay his bills every month said when he got the letter, he felt relieved “I could use the help, that’s one less bill I had to pay. I used the money I was saving on my electric bill to pay other bills I was behind on.”
Newill’s relief was short lived on June 27. Atlantic City Electric sent another letter notifying its affected customers that the aid of Gov. Jon S. Corzine was pleased to announce was a mistake.
According to the Board of Public Utilities in a written statement, an administrative error was made when screening applications from other federal programs such as food stamps to see if recipients would be eligible for the utility credits. Some food stamp recipients were added to the utility assistance program before being checked to see if they qualified for it.
The June letter sent by Atlantic City Electric explained, “To correct this error, any USF credits your household received, including any USF Fresh Start credits, will be removed from your account and must be repaid. This correction will appear on your July utility bill as a charge.”
Many struggling households who were already behind in their utility bills found themselves overwhelmed and unable to pay the new charges.
Amanda Ravenscroft, 21 of this borough had been working on a payment plan with the Electric Company to repay an unspecified amount that was due to the error.
Ravenscroft’s power was disconnected on Oct 20 after they defaulted on the repayment agreement. “We don’t have income, we are both unemployed my husband starts a new job at Burger King tomorrow his first check will not be for weeks what will we do till then,” said Ravenscroft.
According to Newill, his July bill showed he received $700 in error.
Newill said he had no idea how he could repay the money since his rent is more than half his monthly income after deductions and he is currently two months behind in rent, and expecting an eviction notice any day now.
“Someone in the state made a mistake and now we are suffering for it. The state should pay back the electric company, my girlfriend’s father just dropped off food here without him we would not be eating. My phone has been cut off and I feel I’m trapped in every direction. The only thing left for them to take is my power. I’m trying to get caught up with my rent, I don’t need the states screw up on top of all my other problems to deal with,” he said.
According to the BPU statement toward the end of July 2008, the board directed the utilities not to discontinue service for non-payment of the USF benefit received in error.
The “stay” on disconnections is set until Nov. 15, 2008, which is when the Winter Termination Program (WTP) begins. WTP protects certain categories of customers from shut off until April 1.
Atlantic City Electric says it has disconnected service to 67 of the 2,483 customers who wrongly got the credits. Those who had service shut off did not pay their bills or contact the company to establish a repayment plan; an additional 481 customers are in collections, company representative Bridget Shelton said.
South Jersey Gas says it has disconnected service to 10 of the 170 customers who wrongly got credits. South Jersey Gas says those who had service shut off had fallen behind before the credit error, according to Joanne Brigandi a company spokeswoman.
In a phone interview with State Sen. Jeff Van Drew, (D-1st) Van Drew said he would review the mistake with his constituent services team to see what could be done to help those affected get utilities restored.
Freeholder Gerald M. Thornton, director of Health and Human Services was outraged by the mistake.
“The state needs to get there act together, families are struggling out there, the State has an obligation to make these people whole again and immediately correct the problem.
Thornton discussed the issue of county residence without power with Board of Social Services Director Janice M. Seer to see what resources the county has to help with the massive State mistake.
Thornton said the Board of Social Services would evaluate on a case-by-case basis depending on income and other criteria to see what is available.
The county Board of Social Services can be reached at 609-886-6200.
Contact Scheeler at: (609) 404-6515 or hscheeler@cmcherald.com