CLEVELAND — Cleveland City Council’s Utilities Committee signed off on legislation that would use $2 million in American Rescue Plan Act (ARPA) money to fund a one-time utility amnesty program. The initiative, which still requires full council approval, could reduce or eliminate the utility debt held by 2600 customers that are currently on a payment plan with the city-owned power and water companies.
The amnesty program is the result of months of planning and research in determining how to ensure the pandemic relief money ends up in the hands of those who need assistance the most. Ultimately, officials with the city’s Department of Public Utilities (DPU) and various council members honed in on 1200 Cleveland Public Power customers and 1400 customers of Cleveland Water that have enrolled and made payments toward an approved payment plan. Martin Keane, the director of DPU, said the amnesty program, as designed, will have the greatest impact on those with immediate needs in the shortest time possible.
For every payment made by a customer on a payment plan, the city-owned utilities would provide matching funds, potentially reducing their debt by a significant margin or wipe it out entirely.
“This is a priority of council. This is, in my opinion, what ARPA dollars were meant for: to help out as many people that were affected by the pandemic as possible,” said Councilman Brian Kazy (Ward 16). “On my time on council, this is one of the pieces that I will be most proud of — if it passes with the help of my colleagues.”
The legislation was unanimously passed out of the Utilities Committee on Thursday.
Once approved by the full council, Cleveland Water and Cleveland Public Power will send mailers to each one of the 2600 customers that qualify. The mailers will contain a short questionnaire to confirm that their utility debt was at least partially the result of the COVID-19 pandemic. Recipients of those mailers are strongly encouraged to respond.
On a broader level, the amnesty program has the potential to free up other public resources for those that are having challenges in paying their energy bills.
At Step Forward, a non-profit that previously operated as the Council for Economic Opportunities in Greater Cleveland, the demand for energy assistance is up an estimated 30 percent over the past year, according to energy assistance director Paul Billups.
In addition to helping clients apply for and secure energy assistance, Step Forward also provides early education programs, adult skills training, as well as personal and professional development.
Billups said many clients seeking energy assistance often have to contend with incredibly difficult financial decisions. What bills get paid? Rent? Food? Keeping the lights on?
“It’s a common struggle that we notice with a lot of our customers. They have to choose on a daily basis what to do, what should take priority. We try to find as many resources as we can to help them,” Billups said. “We’re hoping that as it [the amnesty program] gets administered throughout the city, it gets to the people that need it the most. That should be the number one priority.”
Billups said those seeking energy assistance that aren’t customers of CPP are dealing with an added layer of insecurity due to ongoing volatility in the energy market, including an expected 30 percent rate hike brought on by spikes in energy prices.
Many of the rate hikes will begin to take effect as the summer crisis energy assistance programs begin, placing an even greater strain on assistance providers working to help customers dealing with soaring electric bills.
“We don’t want anyone to go without their electric service,” Billups said. “We found over the past few years, at least, no matter what services we can provide, the need is always greater. There are so many families here that need assistance. It would be a dream if we could reach them all.”
Sharon Wilson, a single mother of four, has found her paychecks aren’t stretching as far as they once did, due in large part to lingering inflation. She’s three months shy of graduating from nursing school. Upon graduating, she’s hoping a better job will come with more pay and better benefits. Until that day comes, however, she’s grateful for the assistance that Step Forward has provided.
“As a single parent, I’m working and going to school. I’m trying to better myself by going to nursing school so I can get a better job and a better income coming into the house. It’s been really hard,” Wilson said. “I can see the prices have gone up tremendously. The money that I get is not enough. I’m very thankful [for the energy assistance] because if it wasn’t for them, I can pay $1800 to continue my gas and lights or pay $250 a month. What I’m making… it’s not enough money.”
