Can You Transfer Utilities With a Balance?

Utility services, encompassing essentials such as electricity, gas, water, and internet, are fundamental to modern living. When individuals relocate, managing these services, particularly any associated financial balances, becomes a necessary consideration. This process involves ensuring continuous service while properly addressing any outstanding amounts owed to or by the utility providers.

The Nature of Utility Service Transfers

Transferring utilities refers to adjusting service arrangements when moving to a new residence. This can involve moving service to a different address within the same utility provider’s service territory, where the existing account is updated for the new location. Alternatively, a move might necessitate switching to an entirely different utility provider, such as when relocating to a new city or state. A third scenario involves transferring account ownership to another individual at the same address, such as when a tenant moves out and a new tenant moves in.

Understanding the types of financial balances associated with utility accounts is important. An “unpaid balance” represents money owed by the customer to the utility company for services rendered. Conversely, a “credit balance” signifies funds that the utility company owes to the customer, which can arise from overpayments or security deposits. Distinguishing between these balance types is important for navigating the transition of utility services.

Addressing Unpaid Balances During Service Changes

When an unpaid balance exists, utility companies generally require these outstanding amounts to be settled before transferring service to a new address or initiating new service for the same customer. Some utility providers may offer payment plans or deferred payment options to help resolve the debt. Failure to address an unpaid balance can lead to the disconnection of service at the old address.

An unresolved unpaid balance with a utility company can prevent a customer from obtaining new service with that same provider. If the unpaid bill is sent to a collection agency, it can negatively impact an individual’s credit score, affecting their ability to secure future services, loans, or even rental housing. Resolving any past-due amounts is a necessary step before attempting to establish new utility service.

Managing Credit Balances When Changing Service

Customers may have a credit balance with their utility provider when moving or changing service, often resulting from overpayments or refundable security deposits. Utility companies typically refund deposits after timely payments or upon termination of service. These refunds may be issued as a check or applied as a credit to a new service account if the customer remains within the same provider’s service area.

When an account is closed, the security deposit is applied to the final bill, with any remaining credit refunded. Utility companies process credit balance refunds within 10 business days of sending a final statement. Providing the utility company with an updated forwarding address and contact information is important for a smooth refund process.

Next Steps for Initiating New Utility Service

Once prior balance issues are addressed, initiate new utility service at the new location. This process requires gathering information, including the new address, move-in date, personal identification, and a Social Security number. For renters, a copy of the lease agreement is usually required, while homeowners may need to provide a deed or purchase agreement.

Applications for new service can be submitted online, by phone, or in person. Many utility providers require a security deposit for new service, which can vary but often ranges from $125 to $200 or up to two times the average monthly bill. This deposit may be waived based on a customer’s credit history. Scheduling service connection and meter readings in advance helps prevent service gaps.