Responsible Utility Customer Protection Act

Summary of Important Changes
The Governor signed a new law called the Responsible Utility Customer Protection Act (Act 201 or Law) that became effective on December 14, 2004. The Law makes new rules to help utilities keep costs down. To keep costs down, we have new rules for collecting money on past due accounts and to reduce the number of customers who switch accounts or file repeated complaints with the state Public Utility Commission to avoid paying overdue bills.

The law was designed help all utility companies to cut down on debt, with increased ability to focus on people who have the means to pay their bills, but have found ways to avoid making the payments. Bad debt keeps rising due to people who know how to scam the system. The Energy Association of Pennsylvania said that in 2004, utilities absorbed nearly $750 million in unpaid bills.

To inform customers about these changes, Allegheny Power has placed newspaper ads throughout its service territory and is sending bill inserts to its more than 610,000 Pa. residential customers. Click here (PDF) to see the newspaper ad & bill insert.

Some notes about Act 201:

• The law focuses on people who can afford to pay their bills, not low-income people who qualify for assistance programs such as the state's Dollar Energy Fund or the federal Low Income Home Energy Assistance Program. The law will affect people whose income levels are at least 2.5 times higher than the state poverty level. For example, to be placed in the category of chronically late paying customers, a single person must earn at least $23,250 per year. A family of four must earn at least $47,125. There is also consideration given to people with medical conditions or who have lost jobs.
• Under the law, utilities must provide a written warning at least 10 days before service will be cut. Three days before service will be cut, companies must contact the customer by phone or in person. During the months of December through March, customers who cannot be reached by phone or in person will find written notices at their homes 48 hours before termination.
• Until now, utilities were prohibited from turning off service during the winter months without approval from the PUC. However, because of the new law, utilities may cut service without consulting the PUC to delinquent customers who are deemed able to pay.
• In addition, companies may require deposits from prospective customers with bad credit before restoring or starting service.
• Allegheny Power's goal is to enroll income-eligible customers into the available assistance programs; we strongly urge customers to get their accounts current and we encourage those who may be experiencing or anticipating difficulty paying their bills to contact Allegheny Power before they get behind on payments.
• Budget plans and payment options remain an option for customers regardless of income--Allegheny Power's Average Payment Plan may now be a great option for many customers. Click here for more information on our Average Payment Plan.