rights of utility customers

Protecting Vulnerable Consumers and Promoting Marketplace Justice

NCLC, 77 Summer St, 10th Fl. Boston, MA 02110 Phone: (617) 542-8010 Fax: (617) 542-8028 www.nclc.orgCharlie Harak Email: [email protected]

NATIONALCONSUMER LAW

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Rights of Utility Customers

National Community Action Foundation

St. Petersburg, FL

October 24, 2006




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Strategic Overview Learn rules/work w. individual customers Conduct trainings Monitor problems/dialog w. PUC Engage w. key utility personnel Become a presence at legislature




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Overview of Regulation Munis/coops v. IOUs “Restructured” states Cell phones: Sprinting to the Wild West Wireline phones: Separate rules Water: Separate rules




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Obtaining Service – Deposits (1)

All states allow, except MA. Limited as to max. amount and circumstances

(bad payment history). Credit history, homeownership, employment

may affect deposits. Can’t discrim. against income from pub. ass’t




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Obtaining Service – Deposits (2)

Usually limited to 2 or 3 mos. of usage. Better rules for seniors, poor, in winter. Can be paid over time. Often must be returned w. interest.




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Obtaining Service – Prior Address/Prior Occupant

Find out details of why service denied. Tenants not liable for bill of landlord/prior,

unrelated occupant. May be liable for roommate, spouse, etc.




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Obtaining Service –ID Issues

ID often required. Cos. may be stricter w. immigrants,

minorities, certain neighborhoods. Be alert for illegal discrimination. Complain to PUC if SSNs demanded.




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Lowering Bills – Basic Sources

WAP LIHEAP, local fuel funds, charities Utility discounts Utility-funded audits, energy efficiency [Phone: Lifeline, Link-Up] [Water: leak-detection, conservation]




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Lowering Bills: Payment Options

Budget or levelized billing Payment plans Changing due dates for bills ADVOCACY TIP: Arrearage

management programs




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Term. Protections – Process

“Payment period” – bills not even due 2nd notice and/or “termination” notice “Generated” v. “mailed” date Rights usually must be included In-person notice may be required




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Term. Protections – “Safe” Days

Weekends/holidays often off-limits Late afternoons/eves. may be protected Fri’s/holidays may be protected Notices may become void




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Term. Protections – LL/T

Tenants not responsible for LL’s bills Most states require notice to T’s if LL

about to be terminated T’s may have right to withhold rent “Self-help” evictions usually illegal




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Term. Protections – Disputes

No termination if bill disputed Escrow may be required




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Term. Protections – Illness

44 states have some form of protection May require financial hardship and/or age May require payment plan Proof of illness required Proof by phone may be ok initially Often limited to 30/60/90 days




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Term. Protections – Age

Elders protected in 12 states May be limited to winter, or only requiring

payment plan, specific PUC ok, or more notice

MA protects infants under 1 year Proof of age may be required




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Term. Protections – Weather

40 states have protection: by rule, ad hoc Most are winter; some summer Most by date; others by temperature May require financial hardship, elderly or

disabled May require payment plan




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Payment Plans

Budget plans v. deferred payment plans Key area for aggressive advocacy Avoid agreeing to unaffordable plan Develop personal contacts w. cos.




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Misc. Issues

Cos. that sell appliances Bankruptcy Line extensions




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Late Charges & Reconnections

Should not be imposed on disputed $$$ “Pyramiding” of late charges not allowed Reconnection time frames may be

regulated Reconnection fees may be waived,

voluntarily or by rule




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Advocacy: Consumer Division

Contact company first Do your homework, esp. payment plans Go up the chain of command Meet w. consumer division head Find back-up Use UDAP laws




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Advocacy: Training

Designate a utility expert (no “Esq” req’d) Write a manual Learn the rules/set up trngs. Get the PUC/leg. to buy in Build back-up capacity




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Advocacy: Monitor Problems

Set up a “list serve” Track payment plan benchmarks Track compliance w. protections Share knowledge of resources




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Advocacy: Seek Better Rules

Meet informally w. PUC Formally petition for new rules Meet w. credit mgrs. File legislation




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Advocacy: Key Goals

Good payment plan rules Discount rates Arrearage mgmt. programs “Can’t pays” and “won’t pays” More LIHEAP funding Energy efficiency programs

rights of utility customers

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