A utility company can require you to pay one-third of the yearly cost of service before connection. This happens if it believes there is a pattern of avoiding paying for service at the same location.

This is called Payment Avoidance by Location (PAL), and it applies when:

• There is a new application for public utilities from the service location; 
• A former customer who was disconnected for non-payment at the same service location still lives there; and 
• The new applicant lived at the service location during the time the previous customer's debt was made. 

If you are accused of PAL, the utility company must give you a written notice that

• describes the problem and facts in detail; and
• shows evidence that proves there is a pattern of avoiding payment. 

You have the right to see all of the utility company’s evidence. You will also get the chance to respond to the allegations. 

Changing your bill due date to avoid late payments

The utility may offer you a Preferred Payment Date (PPD) that allows you to make timely payments if

• you pay late 2 times in a 12 month period, or
• you enter into a budget payment plan.

The utility company must offer you a PPD if 

• your primary source of income is from a benefit, such as Social Security or Veterans benefits, and
• that is received within 10 days after your regular due date.

You may call the company and ask for a specific date your bill is due each month.

Eliminating utility debt by filing for bankruptcy

You can have your utility debts discharged if you file for bankruptcy. While the bankruptcy case is pending, the utility cannot shut off service based on the past due debt, as long as you listed the debt on the schedule. 
You need to weigh the advantages and disadvantages before filing for bankruptcy.