Lawmaker threatens utility

A Bay Area utility company is being accused of blocking the sales of thousands of vacant homes headed for foreclosure.

The realtors say an obscure utility policy could devastate an already struggling real estate market.

At issue are an estimated 2,400 short sale properties in just Pasco County waiting to be sold, and realtors say the Withlacoochee River Electric Compnay could block the sale of many of them.

Why?

Because typically, when homeowners stop paying the mortgage, they also stop paying the power bill.

Withlacoochee River Electric refuses to restore the utilities to those homes, even if helps get the home sold.

"I'm hoping that Withlacoochee would realize the policy they have in place is probably old," said State Senator Mike Fasano.

Without power, it is impossible to obtain a home inspection and an appraisal, and thus there is no sale.

Nonetheless, Withlacoochee has been unwilling to change its policy. Now Senator Fasano says he may introduce legislation to force a change.

"The person who wants to buy that home and move in there and be a responsible owner and responsible bill payer shouldn't be responsible for the person who left and left those bills unpaid, " Fasano said.

Despite pressure from lawmakers and an hour-long meeting with realtors, a company spokesman was unmoved.

"We're not talking about a few thousand dollars here, we're talking about over a million dollars," said Withlacoochee's Dave Lambert. He insisted unlike Progress Energy and Tampa Electric, Withlacoochee is a small electric cooperative that cannot afford to change its policy about keeping the power off at homes with outstanding bills.

"We cannot expect our members , who are struggling as it is, who are on social security or low income families who are struggling with the economy to take on their debt," Lambert said.

Lambert also said he will discuss the issue with company leaders but made no promises about a policy change.