Seaford outlines new utility disconnect rules after state bill; council approves higher renter deposit

City staff presented required revisions June 24 to Seaford's credit and collections policy for municipal utilities following a state law adopted May 22; the new statute takes effect in late August and requires municipalities to change disconnect procedures for heating and cooling seasons, add medical‑necessity protections and formalize dispute and third‑party notification procedures.

Staff described the calendar and contact requirements the new law imposes: a cooling season from June 1 to Sept. 30 and a heating season from Nov. 1 to March 31; no disconnects are permitted Dec. 21–Jan. 1; disconnects generally must occur between 8 a.m. and 4 p.m. Monday through Thursday; written notices and documented contact attempts are required (heating season: two documented attempts on separate days including at least one by phone/text/email and one after 5 p.m.; cooling season: one documented attempt including phone/text/email); and a 72‑hour notice of termination plus a 14‑calendar‑day written notification during the heating or cooling season are required. Staff said the temperature checks to permit disconnects must use National Weather Service data from an airport in Sussex County and that disconnects are still permitted in emergencies or at a customer's request.

Staff also explained the statute requires municipalities to offer a voluntary third‑party notification option (a person or agency the account holder designates to receive warning messages but not to assume liability for the bill) and to adopt a formal medical‑necessity procedure in which qualifying medical documentation prevents disconnects for 120 days and allows recertification if the customer shows a good‑faith payment effort.

City staff said they had drafted procedural documents required by the state law: a written dispute procedure (a dispute must be filed prior to disconnection and cannot be disconnected while the dispute is being processed if the customer is acting in good faith), a payment arrangement application (the staff proposed limiting payment arrangements to two per year), emergency restoration procedures and third‑party notification forms. Staff said the municipal electric system has historically exercised informal discretion (for example, not disconnecting when temperatures are very low) but must now codify the new statutory requirements.

Because the new rules will extend some protections and limit disconnect windows, staff also recommended raising the residential renter deposit from $200 to $300 and increasing the incremental deposit requirement from $25 to $50 to help cover longer non‑disconnect periods and potential increases in delinquencies. The fee schedule revision was moved by Councilman Orlando Holland, seconded by Councilman Alan Quillen, and passed unanimously. City staff said the ordinance implementing the statutory rules will return for a second reading and that, per state law, the city must adopt its ordinance within the 90‑day window given to municipals; staff noted an August 28 statutory deadline and that the ordinance will be advertised for 30 days before final adoption.

Staff emphasized customer communication will be crucial because the statute requires the city to rely on customers' phone and email contact information for after‑hours attempts; staff said customers are responsible for keeping contact data current. The city also plans to publish procedural materials and outreach to help customers understand new protections and available payment options.