The first step to obtaining service is to contact the utility and request connection. The company’s response will be guided by the customer’s credit history and/or prior payment record with the utility company.
When service is denied
Utility companies may not unreasonably discriminate against any residential customer.
Ask for clarification
If a customer’s application for service has been denied, the customer should ask the utility company to explain its decision.
Past payment troubles
If a customer had payment trouble in the past and has not paid a past due bill in full the utility company may turn down a customer’s application for service. If this happens, the customer can try to negotiate a small deposit and/or a payment plan to pay off what is owed.
Households with medical conditions
If a household member has a serious medical condition and would be endangered by the denial of service the customer should ask for medical and financial certification forms from the utility company and ask for connection of service even if any past due amount is not paid off.
If any or all of these steps have been tried and the company will not establish service, customers have a right to file a complaint or ask the Consumer Division of the Public Regulation Commission for assistance.
A customer cannot be denied service based on a landlord or prior tenant's failure to pay prior bills.
A security deposit may be required
Gas and electric utility customers may be required to pay a security deposit before service is established only if the customer:
- has not previously had service with the utility company and has not established an acceptable credit score/rating (see below),
- has a history of payment trouble,
- had service disconnect and the deposit is demanded in order for reconnection of utility service, or
- unlawfully interfered with or diverted the service of the utility.
These are the only criteria that the companies can use to assess a security deposit. Companies may not demand a deposit based solely on race, color, religion, national origin, sex, marital status, age, or income.
When a deposit is not required
One way to avoid a security deposit is to establish an ’acceptable’ credit score which a customer can do by providing proof of:
- home ownership or pending purchase,
- employment on a full-time basis for at least one year,
- adequate regular source of income (i.e.; retirement, SSDI other non-employment income), or
- adequate credit references from a commercial credit source or utility where the residential customer had prior utility service.
When a deposit is unaffordable
When a utility company customer is not able to pass the “credit score test” and, as a result, may be asked to pay a security deposit that is unaffordable in order for service to be connected.
Customers may be entitled to special consideration
New Mexico Administrative rules provide limited protection when a security deposit is unaffordable:
If a residential customer or prospective residential customer cannot establish an acceptable credit rating but can demonstrate to the utility that the residential customer does not have adequate financial resources to pay the security deposit because the customer has a low income and is elderly, disabled, or subject to other special considerations, the utility must give special consideration to such a residential customer in determining whether and in what amount a security deposit will be charged. NMAC 17.5.410.17.B
This protection is subject to interpretation. Consumer advocates can use this provision to negotiate with the utility company when a customer meets these conditions. Provide the company with the required financial certification form and medical certification form and then negotiate for a security deposit that is affordable, which could be zero or spread out over months through an installment plan.
Deposit may not exceed a set amount
If the security deposit is too high for the customer to afford, ask the company how it calculated the amount of the deposit. According to New Mexico rules, a security deposit for residential service may not exceed one sixth (1/6) of the customer’s estimated annual billings, or
not more than one and half (1 ½) times the estimated maximum monthly bill.
Example If a customer is renting a one bedroom apartment and the prior year bills averaged $100/month with a highest monthly bill of $180, the security deposit could not be more than $200 (1/6 of total annual bill, ($100 X 12)/6), or $270 (1.5 X $180).
If an additional deposit is assessed
TODO
