Vermont PUC: Lifts Disconnection Moratorium Protections, Adds Safeguards

• The Vermont Public Utility Commission announced on October 8, 2020, that the temporary moratorium on utility service disconnections would end.
• Utility disconnections in Vermont were set to resume on October 15, 2020.
• The VPUC simultaneously ordered new, mandatory but temporary, consumer protections for customers facing economic hardship due to the COVID-19 pandemic.
• These protections were specifically for utility customers whose financial difficulties stemmed from the pandemic and were temporary.

Legal counsel advising utility companies are tasked with ensuring their clients are fully aware of and prepared to implement the newly mandated consumer protections.

The Vermont Public Utility Commission (VPUC) announced a significant change in its approach to utility service disconnections on October 8, 2020. This pivotal decision marks the official conclusion of a temporary moratorium that had broadly prevented utilities from shutting off service to customers across the state. The statewide prohibition on disconnections is specifically set to expire on October 15, 2020, signaling a return to standard operational procedures for utility providers in Vermont regarding overdue accounts. This move represents a critical juncture for both consumers and service providers, as the landscape for utility shutoffs shifts.

However, this lifting of the general moratorium on Vermont utility shutoff moratorium end was not a complete return to pre-pandemic norms. Alongside the termination of the blanket ban, the VPUC simultaneously issued a new directive establishing mandatory consumer protections. These measures were specifically designed to safeguard utility customers who experienced economic hardship directly attributable to the COVID-19 pandemic and were temporary. This dual approach aimed to balance the operational needs of utilities with the continued vulnerability of a segment of the population, ensuring that essential services remained accessible under specific circumstances.

The Vermont Public Utility Commission's order, issued on October 8, 2020, introduced a critical layer of support for residents struggling financially due to the public health crisis. While the broader Vermont utility shutoff moratorium end on October 15, 2020, opened the door for disconnections to resume, the VPUC consumer protection order ensured that certain customers remained shielded from immediate service termination. These new protections were not optional; they were mandatory requirements that all utility companies operating within Vermont had to implement at the time, reflecting a commitment to public welfare during the pandemic.

The focus of these new regulations was squarely on individuals and families whose financial stability had been compromised by the COVID-19 pandemic. This targeted relief acknowledged that the economic fallout from the crisis persisted for many, even as other emergency measures were phased out. The VPUC's directive underscored a commitment to preventing essential service interruptions for those least able to bear the burden, thereby providing temporary COVID-19 utility customer relief in Vermont. This nuanced approach differentiated between customers who could resume payments and those who genuinely could not due to pandemic-related financial distress.

The VPUC's recent announcement carried significant implications for utility companies throughout Vermont. With the general moratorium on disconnections concluding on October 15, 2020, these providers had to navigate a new regulatory landscape that demanded careful adherence to specific guidelines. Legal counsel advising utility companies were tasked with ensuring their clients were fully aware of and prepared to implement the newly mandated consumer protections. This involved a thorough understanding of the criteria for economic hardship related to COVID-19 and the specific safeguards that had to be extended to eligible customers, requiring detailed internal training and policy updates.

At the time, compliance officers within utility organizations faced the immediate challenge of updating internal policies and procedures to reflect these new rules, particularly concerning the process for identifying and assisting customers facing pandemic-induced financial difficulties. Failure to adhere to the VPUC's order could expose companies to regulatory penalties, making diligent implementation paramount. The shift from a universal disconnection freeze to a system of targeted protections meant that while Vermont Public Utility Commission disconnections could resume for some, a robust framework of support had to be in place for others, demanding careful attention to detail and proactive policy adjustments from all regulated entities to ensure continued consumer protection.

Lawyers advising utility companies must ensure their clients are aware of and implement the new mandatory consumer protections for customers facing economic hardship, even as the general disconnection moratorium ends. Compliance officers should update internal policies to reflect these new rules to avoid regulatory penalties.

Source: Information sourced from Vermont Public Utility Commission.