Chapter 15 Utility Terminations Overview Utility Terminations Utility

Chapter 15 Utility Terminations

Overview - Utility Terminations • Utility providers have a powerful method of forcing their customers to pay their bills. They can impose the drastic remedy of terminating service to force payment of backbills. • This chapter explains the tools you have to help you manage these debts and avoid termination of service.

Reducing the Utility Bills by Changing the Type of Service • Electric Service - If you have the ability to choose which company provides your electricity, make sure to shop around. Make sure you are on the lowest rate you are eligible for by calling the company, your state utility commission, or state consumer advocate’s office. • Cable/Satellite – Are there cable or satellite TV services that you can drop? • Local Telephone Service – Are you paying for call waiting, call forwarding, etc. ?

Reducing Utility Bills by Changing Billing Patterns • Level Payment Plans. A level payment plan allows you to avoid running up debts during high-usage months by averaging your expected bills so that you can pay the same amount each month. • Dealing with Quarterly or Bi-Monthly Bills. These types of payments can be hard to pay. Ask your utility company to bill you on a monthly basis. In the alternative, ask them to accept monthly payment from you, even if they will not send you a monthly bill instead. • Avoiding Late Payment Charges by Changing the Date your Bill is Due. If your main source of income arrives in the mail on the fifth of the month, but your utility bill is due to be paid on the fourth, it is obviously going to be very difficult for you to pay your utility bill on time. Late payment may increase your monthly bill because of late charges. Contact your utility company and ask them to change the date the utilities are due each month.

Reducing Utility Bills by Reducing the Utility Usage • Utility Company Sponsored Weatherization or Conservation Programs. Many utilities have programs that proved free or low-cost weatherization or conservation services. Contact your utility providers to see if what type of program they might provide and whether you are eligible. • Government Sponsored Weatherization Programs. The primary program is the federal Weatherization Assistance Program. Households that qualify generally receive up to $2, 500 in benefits. • Self-Help Weatherization and Water Conservation. There are something you can do on your own to reduce your monthly bill. Some examples include: checking for air leaks around your windows and doors, turning of lights and heat or cooling when not home and turning down the temperature on your hot water heater a notch.

Reducing Utility Bills by Seeking Government Assistance • You may be eligible for a discount plan. Many utility companies have special programs for low-income households. • Reducing your bill through government and other Assistance. If you have low income and high utility bills, you are probably eligible for one or more of several sources of assistance.

Your Rights when the utility companies threatens to terminate service • Utility companies must follow rules before terminating your service. In most states, there are laws which provide a variety of significant protection when utility companies threaten termination of your utility service. • Many of the larger utility companies are regulated by commissions called public utility commissions or public service commissions. • Utility companies can only shut off your service if they have met the requirements set out by commissions.

Utility Terminations Rules: More detailed explanation of your rights (1) • Notice. Prior to termination of your utility service, you must be given notice that the service is subject to termination and the various right you have to prevent termination. • Limit on circumstances warranting termination. Limitations on termination of services include: disconnection on small accounts or those accounts owed for less than a certain number of months, or in situations where there is a dispute in the amount owed. • Limit on the times or days when shut-offs can occur. Limits in some states may include shut-off times only at times when the consumer can reach the utility company and prohibits shut-offs on holidays or the day before a holiday or weekend.

Utility Terminations Rules: More detailed explanation of your rights (2) • Right to a hearing. Before or after termination, you have the right to appeal to both the utility company or an independent third party, such as the public utility commission. • Right to a deferred payment plan. Before utility service is cut off, most state require that you be informed about the option to pay all over due bills over a period of months through a reasonable installment plan. • Winter moratorium on terminations and other termination bans. In many northern state, heat-related utility companies are prohibited from terminating any residential customer between November 1 st to March 31 st.

Utility Terminations Rules: More detailed explanation of your rights (3) • No termination if there is serious illness. State law or public health commission regulations often restrict termination of service for households whose members face a serious illness, are threatened with serious illness, or depend upon life support systems. Regulations may also be in place for those households with young children or pregnant women. • Information about sources of assistance. Before disconnection, utility companies must provide customers with information about the existence of any energy assistance programs. • Tenants protected from termination of service for landlord’s failure to pay. In some states tenants must receive special shut-off a notice when the landlord is responsible for paying the utilities but fails to do so.

Utility Terminations Rules: More detailed explanation of your rights (4) • Tenants protected from shut-off by landlord. It is illegal in almost every state for a landlord to cut off your utility service as a way of making you move or pay your rent. • No termination of local telephone service for bills for other service. Many but not all states prohibit the termination of local telephone services because of non payment of long distance services. Every state prohibits termination of local telephone services due to nonpayment of 900 calls or pay-per-call services. • Bankruptcy protections. When you file bankruptcy, there is an automatic requirement that the utility company must restore service or stop a threatened termination (this does don’t include telecommunication services).

Sources of Emergency Assistance (1) The following sources should be pursued: §LIHEAP crisis assistance. Low Income Home Energy Assistance Program helps low income families pay their utility bills. §Emergency assistance for families with children. If you have children and are about to lose essential utility services, you should contact your state public utility commission or departments of health, welfare, and housing to see if there are emergency funds that could help you. §State emergency assistance. Some states have special fund to help prevent utility termination.

Sources of Emergency Assistance (2) The following sources should be pursued: §Utility fuel funds. Many utility companies collect money from their customers and their shareholders for a special fund to help people pay their utility bills. Contact both your current utility provider and any other utility provider in your area to see if there are programs that might help you. §Salvation Army, Local churches, and other places of worship. Many local religious and charitable organizations have money to help needy people in the community with emergency bills.

Ways To Get Your Utility Service Turned Back On • Dealing with an Old Bill. If the bill is very old, more than three or four years, it is possible that the utility company cannot legally require you to pay it before providing you with new service. • Bargaining with late charge company. Generally, a utility will charge late fees for paying a utility bill after it is due. Bargain with the utility company; in many cases, they will reduce all or part of the late charges. • Negotiating reconnection Fee. This fee may be charged on a household after its service has been terminated. Try the negotiating with the utility provider to have these charges eliminated or reduced. • Complaining unreasonable deposits. Customers who believe that a deposit is being requested unreasonably, should not hesitate to complain.

Utility companies cannot deny services • You should not be denied because you were not able to pay bills from old address. You should be able to pay for the old service under an installment agreement. In some states, this is illegal. If you are given no choice, you should be able to pay for the old service under an installment agreement. • You cannot be forced to pay someone else’s bills. A utility company cannot insist that one customer pay another customer’s bill (this is more difficult if the past bill was in a spouse’s name and you lived in the home at that time of service). • Sometimes utility companies will not provide services because you do not give them identification information. When a utility company refuses to provide service in your name, look for a rental that comes with utility service.