Hardship Fund

As United experts looked at cost projections and analyzed demographic information during the Brazos Electric Cooperative bankruptcy mediation in 2022, it became clear that a segment of United members may have trouble affording securitization charges resulting from Winter Storm Uri.

United officials urged Brazos bankruptcy mediator, Judge Marvin Isgur, to consider how a proposed securitization charge would affect members who struggle financially.

That urging from United and other Brazos member co-ops resulted in the Brazos Electric Ratepayer Hardship Fund, a recently deployed assistance program funded by a $140 million trust that’s designed to be in place for the next 10 years.

The fund will pay 100 percent of the Winter Storm Uri securitization charges for qualifying members whose co-ops (such as United) securitized their final amounts owed to ERCOT.

Along with ensuring United members paid the least amount possible for a “final bill” from Winter Storm Uri, highlighting the struggles low-income families might face due to the securitization was always a priority throughout the mediation proceedings, said United CEO Cameron Smallwood.

“We felt it was necessary for Judge Isgur to understand how the challenges of securitization and those payments that we would need to make would impact our low-income members,” Smallwood said. “We presented him data during several meetings showing that a portion of our members are at an income level where the securitization may provide some challenges for them. At the time, we weren’t calling for a hardship fund, and we didn’t even know exactly how any program or hardship fund could work. We were just saying, ‘You know, you need to be considering how the low-income folks are going to be affected.’

“He asked many questions about our presentation and the demographics and asked whether those are similar demographics across the Brazos system. We explained that some areas of the Brazos system were that way and others weren’t. Ours had a segment of that population, and we were really concerned. So, I think he considered that information. In releasing his proposal for the mediated settlement, the hardship fund was a component.”

Russell Young, United’s senior vice president of finance & accounting, said that members can learn more about the program and find the link to apply by visiting the Brazos Electric Ratepayer Hardship Fund page.

“It’s a low-income program that follows closely with other federal poverty programs in terms of qualifications,” Young said. “Members may qualify if their household income is at or below 150 percent of the federal poverty line for Texas, which for a family of four for 2023 is about $45,000. If you’re already income-qualified for LIHEAP (Low Income Home Energy Assistance Program) or SNAP (Supplemental Nutrition Assistance Program), that may automatically qualify members to make it even easier.”

Once qualified, the program will cover that United member’s securitization payment for the next 12 months, he said. Qualifying members must reapply every 12 months to continue receiving the assistance.

Only current members of participating Brazos Electric member cooperatives are eligible to participate, he said. Members will be eligible for retroactive bill credits back to the start date (January 2023) of the securitization charge if they apply by June 30.

Smallwood said that while he’s disappointed the program lasts 10 years rather than the entirety of the securitization, he wants every member who needs this assistance to sign up to receive it.

“Every member at United who can qualify needs to take advantage of this,” he said.  “It’s there for our low-income folks, and every one of them needs to do it. Let’s say your average usage is 2,000 kilowatt hours.  That’s about $20 or $22 a month. It may not seem like a lot of money. But, $22 times 12 months equates to hundreds of dollars in savings for a year. I don’t think any low-income member that we have should miss those savings. It’s a relatively easy process to sign up.”

For more information on this program, call any United office or visit our website at www.ucs.net.