Can a friend or relative put my utilities in their name if I am in danger of being shut off because I am behind on my bill or the utility is refusing me service?

Under new rules effective September 22, 2004, a third party may receive service in their name provided they are creditworthy. This may be useful in cases where an occupant of a home or apartment is in default of payment for utility services or is refused service. The third party does not have to reside at the home to get service in his or her name.

Suppose Jane Doe is in default on a utility bill at her home. Jane Doe's friend or relative is willing to put the service in his or her name. The utility must do so, as long as the friend or relative is creditworthy and pays the required deposit. The friend or relative will then be responsible for paying the utility bills. However, the third party should be aware of their legal responsibilities concerning payment of the bill.  If the occupant has applied and qualifies for LIHEAP, the utility will not shut off service to the occupant during the winter moratorium even if the third party requests it. 

For example, suppose Jane is in default on her electric bill, has defaulted on a payment agreement, and the utility has already shut off the electric service in late August.  Jane's sister, Joan, offers to put service in her name.  Joan has a good credit rating. In September, Joan pays the deposit, which is equal to the highest monthly bill in the past 12 months. Her understanding is that Jane will pay her back for the cost of the electric bill every month.  The service is turned on in Joan's name, who is now responsible for paying the electric bill. Jane applies for LIHEAP in November.  In December, Jane and Joan get in an argument.  Jane stops paying Joan back for the electric bill.  Joan calls the electric company and requests the service to Jane be terminated.  The electric company refuses because Jane is on LIHEAP and they can not terminate her service during the winter moratorium.  Joan is responsible for Jane's utility bill until April 1 when the winter moratorium ends. If she stops payment on the electric bill, it may effect her credit rating.

Another example is that a landlord who is responsible for a tenant's utilities cannot terminate utility service to tenants who are LIHEAP certified during the winter moratorium. (Iowa landlord-tenant law also prohibits a landlord from trying to evict a tenant by having utility service shut off.)

If you run into problems with your utility service, you may wish to contact the Iowa  Utilities Board and/or your local Iowa Legal Aid office. Helping clients with consumer issues, including essential services like utilities, is a priority for Iowa Legal Aid.