MINNEAPOLIS - Last month's deep freeze in Minnesota required more than extra layers of clothing; people cranked up the heat to stay warm, likely resulting in higher energy bills. New financial assistance now is available for low-income households to cover the extra heating expense.
The Minnesota Commerce Department, through its Energy Assistance Program, is boosting the maximum annual crisis benefit for qualifying households from $600 to $1,200. Officials stress it's a one-time increase.
Bill Grant, executive director of the Minnesota Community Action Partnership, said it will help soften the blow for folks who might get a shock when opening their latest power bill.
"The projections are that anywhere from $250 to $500 for that period of time," he said. "Hopefully, and in most cases, people will not have to pay that in a lump sum, but yes, people will be seeing that showing up on their bills."
People who qualify but haven't yet signed up are being encouraged to do so before funding runs out. The deadline to apply is May 31. The program helps cover past-due bills, utility reconnections and emergency fuel deliveries. February's run of sub-zero days also prompted the state to begin investigating natural-gas purchases made by providers, who insist the price impact to customers will be spread out.
The extra assistance isn't only for new applicants. Households already getting energy-assistance benefits could receive additional aid. Either way, Grant said, it's important to take immediate steps. He noted that your local community action agency can help with the process, and said contacting your energy provider is another good move.
"The other thing people should do if they have fallen behind on their bills," he said, "is to reach out to their utility company and make an arrangement for a payment plan."
He said that initial contact lets the company know you're making a good-faith effort to work through the situation. Meanwhile, online at MinnCAP.org, you can find a list of community action agencies.
Disclosure: Minnesota Community Action Association Resource Fund contributes to our fund for reporting on Early Childhood Education, Health Issues, Housing/Homelessness, Poverty Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Lawmakers in Olympia this session moved to add more protections for consumers against predatory loans.
Washington state lawmakers passed Senate Bill 6025 unanimously in both chambers, closing a loophole companies were using to evade caps on the amount of interest charged on loans.
Sam Leonard, an attorney in Seattle, said tech companies providing financial services such as loans would charter out of state banks, especially in Utah, where lenders can charge unlimited interest rates.
"These fintech lenders a lot of times will charge 150, 200% interest on relatively small dollar loans, $3,000, $5,000 and the like," Leonard explained.
Washington state has a set of protections called the Consumer Loan Act to shield people from predatory loans. Leonard said capping interest rates at the federal level would help people across the country.
However, he emphasized the bill goes a long way to increase protections for Washingtonians.
"Not a lot of states at this time have passed similar legislation," Leonard pointed out. "Washington is out in front of the curve with regard to protecting low-income Washingtonians or other Washingtonians that might enter into these predatory loan products."
Leonard added the issue with predatory loans is they keep people in continuous debt cycles.
"Loan products like these essentially strip low-income individuals' ability to improve their economic situation," Leonard noted.
get more stories like this via email
While there's snow in the immediate forecast, the spring storm season has arrived in Minnesota and state officials said with complaints related to homeowner insurance claims on the rise, it is important to monitor changes in policies.
The Minnesota Commerce Department said complaints from policyholders, largely stemming from their claims being denied, have more than doubled since 2020.
Julia Dreier, deputy commissioner of insurance for the Minnesota Department of Commerce, said under a changing climate, the nation is seeing plenty of extreme weather events resulting in wind and hail damage, and insurance companies are adjusting to what's happening.
"Insurance costs are going to increase," Dreier pointed out. "We do want to make sure that Minnesotans are prepared."
As some carriers narrow what is covered or require higher deductibles, Dreier urged consumers to carefully review their policy when it is up for renewal, to avoid surprises when they have to file a claim. The department acknowledged changes can slip under the radar when consumers rely on paperless statements sent via email, or with busy schedules preventing them from reading all the fine print in documents they receive.
The department emphasized it is a complicated process in getting complaints resolved, noting some can be partially reversed in favor of the homeowner. Dreier noted they work closely with the industry to make sure a company's actions are within the letter of the law.
"One of our jobs is to make sure that insurance companies aren't doing something unethical when they're submitting their policy forms to us and their rates to us for review," Dreier added.
The department does have a new video on its YouTube channel, which offers more details on how to better prepare yourself ahead of any future claims, including knowing whether your policy offers flood protection and assessing the value of items in your home.
get more stories like this via email
Wisconsin has announced a big development in trying to establish more digital equity around the state.
Gov. Tony Evers and the Public Service Commission say Wisconsin's blueprint for digital equity has been accepted by the National Telecommunications and Information Administration.
That means the state is eligible for up to $30 million to implement its approach over the next five years.
Martha Cranley - state director for AARP Wisconsin - called it a robust plan, noting that older populations continue to face challenges in being connected to the digital world.
"We know that at least 15% of people 50-plus in Wisconsin are not connected," said Cranley, "either because the wires simply don't come to their house, or they don't have a device, or they don't know how to use it."
Cranley said the lack of connection is especially concerning in rural areas across northern Wisconsin, where aging communities have limited resources.
Stakeholders also note an infusion of new aid is helpful with the federal government's Affordable Connectivity Program - which provides discounts on monthly internet bills for eligible households - in danger of running out of money.
Cranley said the state's plan came together following extensive public outreach, in which her organization helped convey the need for improved internet access for those 50 and older.
"They certainly heard from older people about how important this is to connect to their doctor," said Cranley, "and to connect to government services, and frankly, find employment."
Overall, Evers says the plan's federal approval means more than 410,000 homes and businesses will be better positioned to be connected to new or improved high-speed internet service.
Disclosure: AARP Wisconsin contributes to our fund for reporting on Budget Policy & Priorities, Consumer Issues, Health Issues, Senior Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email