Fall Newsletter: SCC demands utility company assist struggling customers

Friday, December 6th, 2024

VPLC Advocacy Helps Secure $85 Million Savings for Utility Customers

Collectively, Appalachian Power customers avoided an $85 million rate hike in their monthly utility bills after the State Corporation Commission (SCC) denied the company’s request for a substantial rate hike.

As part of the decision, regulators directed Appalachian Power to collaborate with Virginia Poverty Law Center (VPLC) to develop plans that reduce service shutoffs and expand energy assistance programs for low-income households.

Dana Wiggins, VPLC’s Director of Economic Justice, testified before the SCC, advocating for improved outreach to inform eligible customers about payment assistance programs and offering more flexible payment plan options.

“We are pleased that our advocacy helped save customers millions in overcharges, but we are particularly happy that the SCC ordered Appalachian Power to come up with a plan to reduce disconnections,” said Wiggins.

While customer bills will still see a modest increase of about $2 a month next year, this is a significant reduction from Appalachian Power’s original proposal.

The SCC’s public record on the case includes thousands of objections to the rate hike from residents, lawmakers, and community and business leaders, reflecting widespread opposition to the utility’s original request.

Meanwhile, parent company American Electric Power reported that its seven top executives earned a combined $30 million in 2023, even as customers struggled with rising energy costs.

UTILTY CUSTOMERS: KNOW YOUR RIGHTS

Here’s an important fact sheet about the laws in effect that utility customers need to know. Please help us share this information!

Beware of Deceptive “Rent-A-Bank” Loan Schemes

Predatory lenders are once again targeting Virginians, bypassing the fair lending laws that VPLC helped establish.

“Loan sharks are teaming up with out-of-state banks that Virginia can’t regulate. But the ‘bank’ isn’t making the loan at all—it’s just renting out its name,” explains Jay Speer, Executive Director of VPLC.

This scheme can lead to financial ruin for borrowers like Roanoke resident Aubrey Pena.

“I would like lawmakers to understand that tightening this loophole the loan sharks are going through will help prevent companies from preying on people who feel this is the only option,” says Pena.

Just married, the Penas needed $3,000 to secure housing and avoid homelessness. They turned to a loan that seemed like a lifeline but came with a staggering interest rate of 99.9%. Despite paying $4,500 so far, they haven’t even made a dent in the principal.

“The loan has prevented us from buying a second vehicle, moving to a better place, and even keeping food on the table,” she says.

Learn more in this report by Michael Pope.

Holiday Evictions Displace Richmond Residents

Housing advocates from VPLC, New Virginia Majority, and Legal Aid Justice Center are canvassing Richmond’s St. John’s Wood apartment complex, where more than 50 households face eviction.

The team of legal experts is sharing information from VPLC’s Eviction Defense Center to help prepare residents to defend themselves in court.

St. John’s Wood has filed more eviction cases this year than any other landlord in Richmond City, according to VCU’s Eviction Lab.

VPLC Elevates DEI Amid Political Division

DEI programming for state-funded organizations and university systems has come to a screeching halt as programs become a hotly debated political issue, and some states (including some discussions in Virginia) are rolling back their support. In fact, more than 30 states (and more than 100 bills) now restrict, regulate, or outright ban DEI initiatives across the United States. For insight into what this means for many communities, read the latest blog by VPLC’s Louis Green here.

Ward Scull: Honoring a Legendary Advocate for Free Lending

It all started when Ward Scull got angry. He tried to help an employee by paying off his car title loan, but the lender refused his check. Scull was outraged at the business model of exploitation and selflessly donated time and money over many years to rein in predatory lending in Virginia.

Thankfully, he lived to see the Fairness in Lending Act pass. He would be distressed, though, to know that these financial predators are still trying to slither into Virginia. Read the remembrance from VPLC Executive Director Jay Speer here.

Meet Joanna Darcus, New VPLC Team Member

Joanna K. Darcus joined VPLC as the new Economic Justice Staff Attorney to work on consumer rights and unemployment insurance. After a few years at federal agencies, Joanna has returned to the legal aid community to apply her policy, training, and litigation experience here in her home state.

Darcus, a Charlottesville native, graduated from Duke University School of Law and Williams College.

We can’t wait to see all that she accomplishes!

Get Expert Help with Health Insurance

Now is the time to get quality, low-cost health coverage, and navigators with EnrollVA provide free, unbiased help with Medicaid and Virginia’s Insurance Marketplace.

Visit enrollva.org to find the nearest navigator.

Fair Legislation for 2025: Let’s Talk!

As the Virginia General Assembly session kicks off next month, join us for a Coffee Chat to learn more about the issues VPLC is focusing on this legislative session, and the outcomes our advocates hope to see.

Join us Wednesday, January 8, 2025, from 9 a.m. – 10 a.m.

REGISTER HERE FOR THE COFFEE CHAT.

Critical Training for VA’s Legal Aid Community

This fall, more than 500 legal professionals attended dozens of educational sessions at the annual Statewide Conference held in Williamsburg. These essential trainings on the latest issues in civil poverty law are only possible thanks to the generous support of our cherished sponsors!