Utility companies, by law, have the right to disconnect utility residential service if a customer fails to pay the bill, either the full amount of a monthly bill or the amount due under a payment plan. There are a few exceptions. New Mexico recognizes that human health and well-being is jeopardized when people cannot adequately heat or cool their homes, and has afforded some protections against service disconnection for medically vulnerable people and for low-income customers during the winter season.
Legal protections from disconnection
By law (NMAC 17.5.410.29 B) a utility company may discontinue service to a residential customer for nonpayment of a delinquent account, failure to post a security deposit, or failure to comply with the terms and conditions of a settlement agreement pursuant to requirements prior to discontinuance of service (NMAC17.5.410.31) with the following exceptions:
Winter Shutoff Moratorium
A utility company is prohibited from disconnecting service to a residential customer for nonpayment from November 15 to March 15 if that customer meets the qualification of LIHEAP.
Serious Illness or Disability
Regulated utilities may not discontinue gas or electric service to a residence where a seriously or chronically ill person resides. The resident must provide medical certification that discontinuance of service might endanger the customer's life or health; together with financial certification of low-income and/or agrees to a deferred payment agreement.
Negotiated Payment Arrangement
A utility company cannot disconnect a customer who has agreed and adheres to a deferred payment plan.
If utility service is going to be disconnected because the landlord failed to pay the bill you should have the option to continue service on your own.
Disputed amounts
Service may not be terminated for non-payment of disputed amounts as long as the undisputed amount is paid in full. This may take some negotiation with the utility company. Make sure to write the company explaining the amount in dispute when you submit partial payment.
Notification required prior to disconnection of service
Once a customer’s account becomes delinquent the law specifies a series of steps that a utility company must follow prior to service disconnection (see NMAC 17.5.410.31). A thorough understanding of the disconnection process may help customers and advocates to negotiate with a utility company in order to prevent disconnection. If the company does not follow the correct termination procedure, a customer may demand that the utility start the process over.
Written notice required 15 days prior
A utility company must provide written notice in English and Spanish at least 15 days prior to disconnection of service stating:
- the company’s intention to discontinue service,
- the customer’s rights regarding discontinuance of service, budget payment plans, and settlement agreements,
- the amount owed,
- the specific date that service will be disconnected unless payment is made in full or a payment plan is negotiated,
- explanation of how disputed bills are handled, and
- that a customer has the right to file a complaint with the PRC if the residential customer disagrees with the utility's determination concerning discontinuance of service, and
- information on how the customer can apply for LIHEAP assistance, and
- the cost to reconnect service.
Phone or personal contact required two days prior
The utility company must also try communicate with a residential customer by telephone or personal contact at least two days prior to the actual date of discontinuance of service to remind the customer of the pending date of discontinuance of service, advise the customer again of the availability of financial assistance for utility service payments, and obtain payment of delinquent accounts.
The utility employee who personally contacts a residential customer and/or who is sent to discontinue utility services must report any information she or he receives regarding any resident's serious illness or life endangering health condition, such as whether a resident is physically disabled, frail, or elderly. This information must be reported in writing to a utility employee authorized to prevent discontinuance. That employee must then either delay the disconnection or state in writing why disconnection of service will not be delayed.
Utility disconnector can receive payment; cancel disconnection
The utility employee sent to discontinue utility service is empowered to receive payment of delinquent bills, and upon receipt of payment, to cancel the discontinuance order. This means that customers have up until last minute to avoid service disconnection.
Limits on days and hours during which disconnection is permitted
In New Mexico a utility can discontinue utility service to a residential customer during the hours from 8:00 a.m. to 3:00 p.m. on Monday through Thursday. A utility may not discontinue service less than twenty-four (24) hours prior to a holiday or weekend unless the utility's business office is open for receipt of payment of past due charges and utility personnel are available to restore service during the holiday or weekend once payment is received. These extra limits ensure that a customer whose service is about to be, or has been, disconnected, is able to resolve disputes with the utility and get service restored without having to spend a night, weekend, or holiday without service.
Service Reconnection
Service can be reinstated when a bill is paid in full, a payment agreement is negotiated, establishment of legal protection (either winter shutoff moratorium or medical and financial certification). Once a customer complies with the requirements for service reconnection electric service should be reconnected at least by the next regular business day. In the event a medical certificate and financial certification is received, service should be reestablished within twelve hours of receipt.
A charge for connection or reconnection may not exceed the actual cost involved but shall be no less than the minimum allowed in applicable tariffs.
