More than 30 public power officials from throughout New England attended a workshop on customer bankruptcies hosted by NEPPA on Oct. 14 at the Braintree Electric Light Department. The workshop was led by David Fixler, a partner with the law firm Rubin and Rudman, LLP, who provided an in-depth review of the federal bankruptcy code and the rights and responsibilities of utility companies whose customers file for banktruptcy. He outlined the various types of bankruptcies that typically confront utilities, along with the three types of creditors: administrative, secured and unsecured.
He also listed the various restrictions that are placed on utility providers in the event of a bankruptcy, as well as the steps that utilities should take immediately after being notified of a customer bankruptcy filing. Finally, he emphasized the importance of "pre-bankruptcy strategies" that are available to utilities, such as adequate security deposits for customers with large usage patterns.
Copies of Mr. Fixler’s workshop slides are available on the NEPPA website.
http://www.neppa.org/presentations/CustomerBankruptcies.PPT