Sign of the times: Utility gift cards sell briskly

This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.

Nothing says ‘I love you’ like paying your sweetie’s natural gas bill, right?

Utility companies are seeing an uptick in programs that let gift-givers pay the gas and electric bills of friends or relatives, Associated Press reports.

Consumers Energy, a gas and electric utility in Michigan, reported an estimated $265,000 in utility gift purchases by year’s end, a 6% increase from 2007. ‘People are just having a tough time paying their bills,’ said spokeswoman Linda Taylor.

This holiday season sales of electronics and appliances plunged almost 27%. Retail sales dropped between 5.5% and 8% compared with last year, or between 2% and 4% excluding auto and gas sales, according to SpendingPulse, a division of MasterCard Advisors.

The gift cards, much like a holiday greeting card, are sent by the utility to the giver, who can present it personally, or they are mailed directly to customers to notify them that their bill will be credited.

Alliant Energy, of Wisconsin, said its 2008 program will draw in 50% more in sales, an estimated $55,000, compared with the previous year. The quantity of gift certificates and the average gift amount have jumped this year, said company spokesman Scott Reigstad. The program runs year-round, but Reigstad said about 85% of sales occur during the holiday season.

David Pop, an employee at Nevada-based Valley Electric, used his company’s utility gift program to pay a friend’s bill. ‘I saw a friend struggling with finances due to the downturn in the economy,’ said Pop. ‘I figured this was a way to help.’

So far, no Southern California utility seems to be offering gift cards. But at least now you know what to get your friends in Nevada and the Midwest next Christmas.