Spokane7
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December 17, 2010 in City, Idaho
Avista fined over energy assistance
Utility faulted for using aid on past-due balances
State regulators fined Avista Corp. more than $60,000 for improper handling of customer accounts. Most of the violations were related to errors in how energy-assistance dollars were credited to low-income families.
Avista was putting the money toward customers’ old past-due bills, instead of crediting it toward current and upcoming payments.
“That money is intended to keep the heat and the lights on right now,” said Sharon Wallace, assistant director for consumer protection at the Washington Utilities and Transportation Commission. “What happened was that the company applied the money … to old balances.”
That put some customers at immediate risk of having their power shut off, she said.
In one instance, a customer owed Avista at least $1,200 in past-due bills. When the customer received $928 in credits through two energy assistance pledges, all of the money was applied to the old bills, instead of current and upcoming bills.
Commission staff uncovered 621 violations of state consumer protection rules by Avista, with 573 of the violations for misapplying energy-assistance credits to old debt.
Each day the money was incorrectly credited is one violation, Wallace said. Each violation carries a $100 fine.
Avista has 15 days to respond to the investigation. The company can pay the fine, request a hearing to contest the findings or ask the commission to reduce the fine.
Avista officials said Thursday that they were reviewing the commission’s findings.
“Avista and the (commission) share a common concern for our customers and both want to help them avoid an interruption in their service because of non-payment,” Vicki Weber, the company’s customer service director, said in a statement. “We believe that certain aspects of the rules are unclear, and we look forward to working with commission staff in order to avoid future misunderstandings.”
Wallace said the current rules have been in place for at least 10 years. As recently as 2007, commission staff sent a “technical assistance” letter to utilities, explaining how energy-assistance credits should be applied, she said.
The state regulations aren’t intended to keep Avista or other utilities from collecting on bad debts, Wallace said. But the energy-assistance dollars are specifically geared toward “ensuring that customers have energy even when something difficult is occurring in their lives,” she said.
That could be the loss of a job or a medical emergency, she said.
Commission staff initiated the investigation after a routine review of consumer complaints against energy companies in Washington.
The audit of Avista’s accounts covered part of 2009. The commission staff randomly selected for detailed review 166 accounts that had their power shut off in October of that year. The staff also reviewed 101 consumer complaints filed against Avista between June and December 2009.
The other Avista violations were related to inaccurate billing statements, improper notification of power shut-offs and errors in deposit requirements.
Avista reported 19,852 disconnects for customers who didn’t pay their bills in 2009.
Miners to return to Lucky Friday 
oneanddone on December 17 at 4:11 a.m.
Seems like a minimal fine for such an egregious manipulation of a compassionate program. Not surprising of course. Avista is one of those companies who only obey laws when they have to.
liarsinnews on December 17 at 7:11 a.m.
AVISTA officials have a history as being pathological liars. When WWP aka AVISTA were in cahoots with ENRON a few years ago, Avista was fined over $2.million. You know who took it in the shorts for the 2mil. That wasn`t bad enough, the brass at Avista screwed up big time on Wall Street and tried to hang the blame on one of their employees who had committed suicide, but there was a problem. The low life executives forgot to look at the calendar and the poor soul had been dead for several days during the time he was suppose to have been the AVISTA trader re natural gas futures on Wall Street. These people running the monopoly should be ashamed of themselves but these scumbags who pulled the stuff I`ve mentioned, are too arrogant and have no shame. Stealing from the poor is right down their alley.
deacon46 on December 17 at 7:27 a.m.
These folks have no conscience ! But I believe everyone sooner or later gets their due rewards.
deacon46 on December 17 at 7:28 a.m.
Oh yes,
They also don’t read these comments as they have their hired man, Dan, to do that for them……
valleyman on December 17 at 7:29 a.m.
The real fine should be a rate freeze for at least 5 years since Avista likes to keep raising rates. Hit them where it hurts rather than hitting them where they will just pass the hurt on to the rate payers…
liarsinnews on December 17 at 7:43 a.m.
valleyman: Excellent idea!!
Orange on December 17 at 8:04 a.m.
Valleyman, yes good idea. Because you and I both know who’s going to end up paying this fine. You and I with rate hikes.
misjustice on December 17 at 8:30 a.m.
“The company can pay the fine, request a hearing to contest the findings or ask the commission to reduce the fine.”
It is highly likely that Avista won’t pay the 60K fine; I suspect that their lawyers are all ready filing the appeal.
misjustice on December 17 at 8:31 a.m.
oops, already…
I need more coffee…
liarsinnews on December 17 at 8:43 a.m.
I need another spoonful of Pepito. Avista turns my stomach.
Dan_at_Avista on December 17 at 8:54 a.m.
If you’d like to take a look at Avista’s statement in regards to this issue, I posted it on the Avista Blog – www.avistautilities.com/blog. Also, if you have any direct questions you’d like answered, send me an e-mail at conversation@avistautilities.com, I’d be happy to discuss this topic or anything energy related.
liarsinnews on December 17 at 9:03 a.m.
I thought Danny boy would show up. More drivel from the lackey (Dan) working at AVISTA. You`d think by this time after so many comments about him recently, he would take the hint and keep his mouth shut.
titleguy on December 17 at 9:19 a.m.
I see a rate increase coming!!
Coffee on December 17 at 9:23 a.m.
If you do not want AVISTA to miss use energy assistance money, just stop checking the box on your bill. If they do not have the money they can not miss use it.
Orange on December 17 at 9:47 a.m.
Dan, no one cares. Attorney fee’s we’ll all pay for. Fine’s or Fee’s we’ll have to pay them. Right Dan?
Orange on December 17 at 10:02 a.m.
Good point Coffee
mikeln on December 17 at 10:12 a.m.
I remember a article around fifteen years ago about avista and how they tried to justify turning the power off to a home where a woman, suffering from polio and living with a iron lung, lived. Oh, how they claimed the moral high ground, claiming they owed it to the stockholders to put these type of scofflaws in their place. Money doesn’t care and neither does avista. Still looking for that story on changing this service into a PUD. I have seen several reports that avista has the lowest rates around, what proproganda.
zelda on December 17 at 10:27 a.m.
Thank you, Becky Kramer, for digging into this further and updating yesterday’s story with more info from the WUTC. There’s even more perfidy than I suspected.
The linchpin of charitable programs such as Project Share is honoring, not violating, donor intent. I did not give to that program thinking that Avista was using it to cure debt owed by its customers. Cripes.
Ninch on December 17 at 10:35 a.m.
I know that some of these “past due” amounts were carried without interest or late fees by Avista until energy assistance funds became available. Most often the energy assistance was not processed until AFTER the high cost winter heating months and when processed was intended for those past due winter heating bills. Otherwise Avista would have already disconnected because of the past due unpaid bills instead of waiting for the energy assistance funds. So who is responsible for these past due bills for the winter heating season if this energy assistance cannot be applied? Makes no sense that $1000 would be used for current and future bills over spring and summer seasons (less energy intensive months) only. Why don’t you financial wizards get that?
BTW: $1000 covers all my electric heating: Total annual electric heating minus summer month bills (i.e. water heating and miscellaneous electric use). I really wonder why after balance is applied to past due bills that one still owes so much as to still get disconnected.
P.S. Posters above need to become more knowledgeable about energy assistance programs before denigrating Avista or any other energy provider. Maybe we should focus on the extraordinarily high energy usage by certain consumers and why they are not also taking advantage of energy conservation measures/programs…also available through the same agencies that administer the energy assistance funds. Also where is the personal responsibility factor for conserving energy when one has limited funds??? Or unfortunately…in too many cases…spending limited funds on non-essentials?
zelda on December 17 at 10:44 a.m.
>>Wallace said the current rules have been in place for at least 10 years. As recently as 2007, commission staff sent a “technical assistance” letter to utilities, explaining how energy-assistance credits should be applied, she said.
The state regulations aren’t intended to keep Avista or other utilities from collecting on bad debts, Wallace said. But the energy-assistance dollars are specifically geared toward “ensuring that customers have energy even when something difficult is occurring in their lives,” she said.<<
The way I read this, the WUTC specifically told utilities there is one right way to administer energy assistance and Avista chose to do it their own way. The company violated state regulations.
Ninch on December 17 at 11:25 a.m.
Ergo the WUTC rules as you read it means that Avista should be disconnecting utilities when past overdue AND before energy assistance is received. So who is responsible for past due = disconnection? How does one get their utilities connected again without paying past due? Does the WUTC rules apply without consideration if energy assistance is received AFTER the main heating season (aka past due bills) and therefore energy assistance can only be applied for current and future bills in March and April? I think the intent is being lost in some bureaucratic technicality because it is a fact that energy assistance is not always received when there is the greatest need but afterwards. Get real here folks. Hating corporations is so yesterday and nowhere.
Username01 on December 17 at 11:38 a.m.
Ninch: hating big evil corporations is so fun! Personal responsibility? Surely you jest! ;-)
I have a feeling these people who love to complain about how they just can’t pay their overpriced power bill can easily find a way to pay their cable or dish bill, internet bill, and cell phone bill without whining one bit. Nice priorities there folks!
I just looked and utility rates here are some of the lowest in the nation! Avista’s may not be the lowest but they certainly are low compared to just about any other area. I think the complainers need a reality check.
Diana on December 17 at 11:42 a.m.
Username, presuming to know what peoples’ priorities are and carrying water for Avista. I’m sure Avista really appreciates it.
zelda on December 17 at 12:23 p.m.
>>Hating corporations is so yesterday and nowhere.<<
Ninch — who are you? The ghost of Ayn Rand?
Holding corporations accountable is very here and now. I’ve been a Project Share contributor for many years. I don’t object to Avista’s rates; it’s how they choose to explain their finances I take issue with.
I’m not totally sure what’s going on here, but my instincts tell me that WUTC imposes a puny fine so as to look like they’re doing their regulator job, Avista appeals, gets a reduced fine if anything at all, and things go on as before. Damage to Avista’s reputation hardly matters because people aren’t likely to switch brands. Like Teflon, nothing sticks.
InWulffWeTrust on December 17 at 12:55 p.m.
when people dont pay there bill who ultimately pays for it? is it like shoplifting from a store where other customers ultimately pick up the tab. people can’t get free gasoline, why should they get free electricity?
zelda on December 17 at 1:51 p.m.
@InWulffWeTrust — Yes, the costs are borne by the public, but it’s done in the spirit of helping one’s fellow man and easing human suffering. Heat is essential for survival in this climate, particularly for the sick, very young and very old, as are food, shelter and clothing. We do it to benefit the common good.
But I don’t want to get tangled up in the age-old debate about who the “deserving poor” are.
People have every right to examine how their charitable dollars are allocated. Most of us don’t have the time or inclination to evaluate every individual hardship case so we trust that those to whom we have delegated that responsibility do it in a fair way. That’s all.
greyhound2 on December 17 at 2:48 p.m.
Would you want a private for-profit corporation running the water and sewer department? Would you want a private monopoly running the road department? Of course not. Why would you want a private monopoly running the gas and power department with no accountability except by appointed rubber stamp commissioners?
monkeyman on December 17 at 9:06 p.m.
greyhound2 on December 17 at 2:48 p.m.
“Would you want a private for-profit corporation running the water and sewer department? Would you want a private monopoly running the road department?”
OK. You have a point. But what did the CEO do to deserve a $3M payout in one year? Would he get fired if Avista loses money next year? Sounds like the best of public/private for some people…
avocet on December 17 at 9:55 p.m.
“People have every right to examine how their charitable dollars are allocated. Most of us don’t have the time or inclination to evaluate every individual hardship case so we trust that those to whom we have delegated that responsibility do it in a fair way. That’s all.”
And that’s why I don’t donate to things like Project Share. The S-R has done stories in the past about the recipients of these kinds of charities. The photos conspicuously often show things in the background like computers, cell phones, fancy spiral perm hairdos, etc. etc.
The sad truth is that some of the leeches have no conscience and ride on the coattails of people’s goodwill and generosity toward “the less fortunate.” They take advantage of these programs so that they don’t have to pay for stuff like heat and electricity because it’s a lot more fun to spend their money on smokes, cell phones, video games, etc.
As someone mentioned, HOW are these people’s delinquent power bills paid? What is so wrong about the donations being used toward late balances? Isn’t THAT what causes your power to be turned off, the fact that you haven’t paid your bill for months?
greenlibertarian on December 17 at 10:46 p.m.
Who’s power would Jesus turn off?
ReallyNow on December 23 at 6:40 a.m.
I have a strong suspicion most of you claiming that the people receiving this charity (and others) are spending their money unwisely have no proof of that. Its just your everyday stereotype. Most of the assistance comes from Federal funding. AND the reason why some of these recipients bills are so high is due to the poor condition their homes are in. Little or no insulation, lack of energy efficient doors and windows. Feel very lucky this holiday season if you can complain about NOT having to need this help. Don’t group the hardworking ,thankful people in with a few bad apples.