Utility deposits: what you need to know

After hearing from many consumers that utility companies were routinely demanding unreasonable deposits, TURN took action. TURN recently won important new consumer protections that will limit when your utility can demand a deposit and how much that deposit will be. Utility companies now have to offer customers payment plans before they can shut them off, and can no longer require deposits for late payment or require low-income CARE customers to pay any deposits at all. In addition, customers who do have to pay a deposit can now do so by credit card. The new rules are as follows:

• PG&E, SDG&E, So Cal Gas and So Cal Edison cannot require credit deposits for late payment of bills.
• Customers who are on California Alternate Rates for Energy (CARE) or Family Electric Rate Assistance (FERA) customers are not required to pay additional reestablishment of credit deposits with a regulated utility company for either slow-payment/no-payment of bills or following a disconnection.
• By October 1, 2010, SDG&E and SoCalGas must offer an automatic payment plan that allows new customers or reconnecting customers an automatic payment option in lieu of a cash deposit.
• PG&E and Edison allow all new customers and those reestablishing credit after a disconnect to post a non-cash credit deposit.
• PG&E, SDG&E, and So Cal Edison must limit reestablishment of credit deposits to twice the average monthly bill.

Each utility posts their rules on their website. For more detailed information, refer to Rule 6 (Establishment and Re-establishment of Credit) and Rule 7 (Deposit). The following links will take you directly to these Rules.

PG&E

Rule 6: http://www.pge.com/tariffs/tm2/pdf/ELEC_RULES_6.pdf

Rule 7: http://www.pge.com/tariffs/tm2/pdf/ELEC_RULES_7.pdf

SoCal Edison

Rule 6: http://www.sce.com/NR/sc3/tm2/pdf/Rule6.pdf

Rule 7: http://www.sce.com/NR/sc3/tm2/pdf/Rule7.pdf

SDG&E

Rule 6: http://www.sdge.com/tm2/pdf/ELEC_ELEC-RULES_ERULE6.pdf

Rule 7: http://www.sdge.com/tm2/pdf/ELEC_ELEC-RULES_ERULE7.pdf

For Pacific Bell and Verizon, a deposit equal to twice your average monthly bill may be required if your service is temporarily disconnected due to non-payment of your phone bill. This is in addition to the balance you must pay, plus a disconnection charge.

Contact Pac Bell at 1-800-310-2355, or Verizon at 800-621-9900 for more information.

If you have additional questions, please do no hesitate to contact TURN's consumer advisor at (800) 355-8876 or consumerhotline@turn.org.