The Columbia Gas or American Electric Power utility program’s current PIPP Plus program (Percentage of Income Payment Program Plus) was created to keep you out of debt. Every time you make an on-time PIPP Plus payment to the utility companies, you win!
Here is how it works:
When you sign up for PIPP Plus and you pay your PIPP Plus bill on time, the balance of your current monthly charge and 1/24th of your total initial utility bill will be forgiven. Your Case Manager will divide the total balance due by 24 to determine the amount to be forgiven after on-time payments.
Example: Mrs. X has a Columbia Gas past-due bill of $864. Her Case Manager placed her on the PIPP Plus program for $43 per month (5% of her gross income). Each month she pays on time, her total amount past due will be reduced by $36 ($864 divided by 24 months = $36). Each month Mrs. X makes her PIPP utility payments on time, two things happen:
1. The amount over and above her PIPP Plus payment is forgiven on her current bill. Example: Mrs. X’s current bill is $172. She makes an on-time PIPP payment of $43 and the balance of $129 is forgiven.
2. The total past-due bill is reduced. Example: Mrs. X’s past-due total of $864 divided by 24 was $36. Each month, $36 will be forgiven from her total past-due bill. When she completes the 24 months of on-time payments, her balance due will be $0.