Dealing With Utility Companies Regarding Disputed Bills and Utility Deposits
The Public Utility’s "Duty To Serve"
Courts and state legislatures have long recognized that access to public utility service is a basic necessity in modern society. Public utilities are those utilities like electricity, natural gas, water and local phone service that serve the general public. Public utilities have a “duty to serve.” This means that utilities must provide service to any member of the public living within the utility’s service area who has applied for service and is willing to pay for the service and comply with the utility’s rules and regulations. The utility’s duty to serve is not absolute, however. A utility may deny service for good cause (e.g., nonpayment).
Billing Disputes
In general, utilities are prohibited from disconnecting service if there is a legitimate billing dispute. Your rights and responsibilities regarding utility service will vary depending on the state you live in and the type of public utility at issue (privately owned, municipal or cooperative). For example, there may be a regulation that will prevent the utility from disconnecting your service during a billing dispute, but you may be required to pay the undisputed portions of your bill.
Deposit Requirements
Utilities typically can require a deposit or security from its customers as long as the requirement is reasonable and not discriminatory. If the utility is regulated by the state public utility commission, there will likely be specific rules for the amount of the deposit and under what circumstances a deposit can be required. Some state public utility regulations provide alternative measures of creditworthiness in lieu of a deposit. These alternatives include allowing the customer to provide a guarantor who promises to pay the utility bill if the customer fails to pay, a good payment record with the utility, proof of home ownership or full-time employment for a set period of time.
Limitations on Deposit Requirements
Some states limit the ability of a utility to require a deposit at certain times of the year (for example during the winter), or in the case of certain low-income or elderly customers.
Finding Out About Your Consumer Protections
Your state public utility commission (PUC) also called a public service commission (PSC) should have a consumer division that can help you and your advocate locate the appropriate state laws, regulations and policies concerning billing disputes and deposit requirements. The utility commissions typically have a mechanism in place for consumers to file informal or formal complaints against their regulated utility, but often have little authority over municipal utilities or cooperatives. There are also other consumer laws that may provide additional protections and you may want to seek the assistance of an attorney specializing in consumer law.
Contacting Your Utility
You should first contact the utility. If you are not comfortable contacting the utility by yourself, you may want to have an advocate help you.
First, gather all of the documents relating to your utility problem (include bills and letters to the company or from the company).
Keep detailed records of your conversations with the utility (who you spoke to, title, time of call, summary of the call).
If the customer service agent cannot help resolve your problem, ask to speak to a supervisor.
Contacting Your State Utility Commission
If the utility will not satisfactorily resolve the problem, contact your state’s public utility commission’s consumer division. They should be able to point you to your rights and the proper procedure the utility needs to take regarding your particular problem. You can file an informal complaint or formal complaint against your utility if the utility is regulated by the commission (privately owned utilities are regulated by the utility commissions, but municipal and cooperatives are usually not regulated).
Other Contacts
You may want to contact your state utility consumer advocate, often housed in your state attorney general’s office. The state utility consumer advocate may also be able to locate the laws, regulations and policies that apply to your particular situation. There National Association of State Utility Consumer Advocates (NASUCA) can help you find the consumer utility advocate in your state. The number for NASUCA is (301) 589-6313, and their website address is http://www.nasuca.org. Your local legal services office and senior advocacy groups may also be able to help you with your utility problems.
Information About Affordability Programs: Community Action Agencies, utility companies and state utility commissions may provide consumers with information about the existence of energy assistance programs, utility discount rates, weatherization services and emergency assistance funds. The LIHEAP Clearinghouse National Energy Assistance Referral (NEAR) project is a free service for those who want information on where to apply for Low Income Home Energy Assistance. The toll free number for NEAR is 1-866-674-6327. Your state utility commission’s consumer division or your local phone company should be able to provide you with more information about discounted local phone rates (called Lifeline) and discounted phone connection assistance (called Link-Up). Residents living on reservations may qualify for an enhanced Lifeline local phone rate that could be as low as $1 a month.
This brochure was supported in part by a grant #90-AP-2647 from the Administration on Aging, Department of Health and Human Services, Washington, D.C.. Grantees undertaking projects under government sponsorship are encouraged to express freely their findings and conclusions. Points of views or opinions do not, therefore, necessarily represent official Administration on Aging policy.
and NCLC