One of the listservs I subscribe to has had several questions posted regarding deceased customers and how other utilities handle the account of a person who has died.
Some utilities (generally smaller ones served by a single local newspaper) monitor the obituaries to see if any local deaths are utility customers. Why would that matter, you might ask?
Prevent identity theft
If you remember, one of the reasons for a Red Flags Rule policy is to prevent and mitigate identity theft.
In some cases, a utility bill in the customer’s name can be used as proof of ID. If a family member of a deceased customer were to move into the home and continue the service uninterrupted, that could be the first step in assuming a false identity. Insuring the account is transferred into the name of the executor or other living family member prevents any chance of that happening.
Protect against bad debt
Depending on the laws in your state, continuing to send a bill to a deceased person may prove to be difficult to collect if it goes unpaid. Therefore, transferring the account into the name of another living person is important.
Adequate security deposit
Additionally, if the deceased person was a longtime customer, they might have had a much smaller deposit (or even no deposit) than a customer applying for service today. Without an adequate security deposit, if the family member taking over the account proves to be habitually late paying, you could end up stuck with bad debt when they leave or sell the property.
Therefore, requiring the person who inherits or otherwise assumes responsibility for the property to apply for a new account is the safest policy.
Do you have a policy regarding deceased customers?
Does your office have a policy regarding deceased customers? Please take this quick poll.
Once you’ve taken the poll, you can see the results to see how other utilities responded. I’ll publish the final results in the next issue.
Upcoming aging workforce seminar
Don’t forget the Aging Workforce Issues – Best Practices Panel & Luncheon seminar on Wednesday, November 30 from 11:30 am to 1:30 pm, sponsored by the Utility Management Committee of the NC AWWA-WEA.
If you are located within driving distance of the University of North Carolina at Chapel Hill, I encourage you to consider attending in person. If not, you can still participate in a live webcast of the seminar.
The seminar moderator is J.D. Solomon, PE, CRE, CMRP; Vice President of CH2M. The panelists are:
- Rod Dones, Organizational Development & Learning Specialist, Charlotte Water
- Tamara Byers, Human Resources Manager, Charlotte Water
- Ed Kerwin, PE, Executive Director, Orange Water & Sewer Authority
- Kenny Waldroup, PE, Assistant Public Utilities Director, City of Raleigh
- Matt Bernhardt, Director of Public Works and Utilities, City of Gastonia
For more information, or to register for the seminar, please click here.
Do you need assistance developing a policy?
If your office needs assistance developing or updating a policy regarding deceased customers, or any of your other policies, please give me a call at 919-232-2320, or email me at gsanders@logicssolutions.com for more information about how a business review could help.
© 2016 Gary Sanders
I am the Senior Consultant with Logics, LLC in Raleigh, North Carolina. I have over 35 years experience developing and implementing utility billing and financial software and consulting with utilities and municipalities. My bi-weekly email newsletter draws from my experience in working with over 200 utilities and local governments to offer insight into how utilities can improve operations and better serve their customers. If you have a comment or a suggestion for a future email, please contact me by calling 919-232-2320 or sending an email to
We check the local newspaper for obituaries. When we find one, we mark our calendar to send a letter 30 days later to the survivors listed. We give them 30 days to bring in the new deed, or probated will, with other required paperwork to start the new account. If we do not get the updated paperwork, we turn the account off 60 days from the date of notification.
Protocol for Deceased Member/Water Customer Instruction (For Internal Use ONLY)
Someone within the office staff is designated to check obituaries.
Once we establish a member has passed, then we send a letter to the estate at the last known address of the decedent seeking information on appointment of Personal Representative and outlining that we need the following in order for service to continue:
a. Death Certificate
b. Personal Representative needs to come into the office with valid picture ID (Driver’s license, Military ID or State ID) and proof of his/her appointment filed with the court (Estate Letter of Administration)
c. Complete an Estate Application & Water Customer’s Agreement in the name of the Estate.
d. Provide a Federal EIN (Tax ID) for the Estate.
The Deceased account will remain intact. The designated office staff person will add the “Estate of” in the salutation section of the account profile in front of the deceased person’s name and in the in care of section add “Personal Representative & Persons Name”.
Membership will not transfer until there is proof of new property ownership (Deed copy) beyond that of the Estate.
If any person is living on the Estate property, the office will need a copy of the signed Lease by the Personal Representative as the landlord in favor of the renter or tenant, and then a completed rental application & rental deposit pursuant to our normal policy will be required.