End Energy Hardship Act

The Secretary of Energy would award competitive grants to electric and natural gas distribution utilities to eliminate residential customers’ unpaid or overdue bills. If a grant cannot cover everyone’s arrears, utilities would prioritize older debt first, then customers meeting the bill’s income test, then households that include an older adult, a person with a disability, a child under 6, or someone with a medical condition requiring utility service.

A utility receiving a grant would have to run a qualified percentage-of-income payment program or an approved alternative for at least 60 consecutive months. The qualified program would cap monthly charges at specified shares of household income, offer automatic enrollment in certain cases, and protect enrolled customers from disconnection if they pay the full monthly amount on time.

Utilities would have to stop late fees, penalties, collections, and disconnections for arrears expected to be eliminated by the grant. They could not recover those same arrears costs from other ratepayers.

Any program funds not spent in the first phase would be distributed to utilities that received first-phase funding, in proportion to the number of residential customers they serve. Those utilities would give each residential customer the same-size credit.

The Secretary would offer technical assistance and, subject to available funds, help cover costs of qualified payment programs. The Energy Information Administration would collect and publish annual data on arrears, disconnections, and program enrollment; utilities that fail to comply could be required to repay funding.