Modesto, MID and TID owed more than $16M in past-due utility bills in pandemic
It’s not just small businesses, renters and their landlords and nonprofits that have been hurt by the pandemic. Utility providers also have taken a financial hit.
Modesto — which provides water to about 80,000 accounts — and the Modesto and Turlock irrigation districts — which provide electricity to about 230,000 accounts — report they are owed millions in past-due payments. That’s a big increase from the days before the pandemic.
Modesto reported that as of May slightly more than one third of its water bills were 60 or more days past due for a total delinquency of nearly $2.6 million.
MID reported that as of June 1 it had about 11,200 residential and 517 commercial/industrial customers who were past due. “In terms of dollars in arrears, we’re at $9.9 million,” MID spokeswoman Melissa Williams said in a June 28 email. “Before COVID-19, the two-year average (March 2018-February 2020) was $2.2 million.”
TID reported that as of June 30 it had 8,608 customers who were at least 31 days late on their bills, and they owed nearly $4.3 million. Nearly 8,000 of them were residential customers, and the average owed was $440.
TID spokeswoman Constance Anderson said in an email the amount past due as of January 2020, just before the stay-at-home orders shut down much of the economy, was nearly $2.2 million.
Gov. Gavin Newsom recently extended California’s ban on evicting tenants who cannot pay their rent because of COVID-19 through Sept. 30. Modesto officials say a June 11 executive order issued by Newsom also extends the ban on turning off water service over nonpayment to Sept. 30.
The California Public Utilities Commission on June 24 extended its ban on turning off the electricity and gas for residential and small business customers through Sept. 30. But the MID and the TID said the commission’s order only applies to investor owned utilities, which includes Pacific Gas and Electric Co., and not publicly owned utilities such as the MID and TID.
Both irrigation districts suspended turning off power in the pandemic. MID is continuing that policy, but TID reversed its policy this year. Anderson said it began sending delinquent-disconnect notices to customers who owed more than $10,000 in January, and it has lowered the past-due threshold over several months. The TID lowered it to $1,200 on June 8.
Utilities working with customers
Anderson said as of June 30 the TID had disconnected 20 customers for not paying their bills, with the majority of them nonresidential customers.
“We understand that the pandemic has impacted everyone differently and are doing our best to work with customers to find solutions for their individual situations,” Anderson said in an email. She encouraged customers behind in their bills to call TID customer service at 209-883-8222.
Williams, the MID spokeswoman, said in an email “we recognize that some customers are still weathering (the) effects and possible financial hardships from the COVID-19 pandemic, so until further notice, MID is extending our practice of not charging late fees or disconnecting customers for non-payment.”
She directed customers to the MID website — www.mid.org/about/newsroom/press_releases/default.html — for information about payment plans, financial assistance programs and other resources. Similar information is available on the TID website at www.tid.org/news-and-resources/safety-tips-and-resources/coronavirus.
Help for Modesto customers is available at www.modestogov.com/261/Utility-Billing-Customer-Service.
There are state and federal pandemic relief programs to help renters, small businesses, local government and others, including programs to help low-income tenants behind in their rent and utilities.
Hopeful about financial relief
Modesto expects help with its past-due utilities bills. “There are both federal and state funding sources that we anticipate receiving to address the delinquency,” Deputy City Manager Caluha Barnes said in an email.
The MID and TID spokeswomen were more cautious.
“Details regarding relief and stimulus programs are still uncertain,” Williams said in an email. “However, if we do receive any funds, they will be used to assist customers.”
Anderson said in an email that TID is “hopeful that we will get pandemic relief funds from the state, but recognize that any funds granted would be divided amongst all (the utilities providers), and we do not yet know what metrics will be used to determine what amount each utility receives.”
“Any funds TID does receive from the state would be used to reduce past due balances and assist those on payment plans.”
This story was originally published July 8, 2021 at 4:00 AM.
