Utility Collections in 2025: Medical Accounts, AI Innovation & Security Risks
Shareholders Sara Costanzo, Amanda Yurechko, and New Jersey Lead Attorney Scott Best recently attended the 2025 Northeast Utilities Credit and Collection Conference in Atlantic City, NJ. The annual event provides utilities located in Northeastern and Mid-Atlantic regions an opportunity for educational and information sessions related to utility collections.
Now, Sara, Amanda, and Scott share their top takeaways from this event!
Now, Sara, Amanda, and Scott share their top takeaways from this event!
1. Difficulties of Servicing a Medical Collection Account
Sara, Amanda, and Scott presented in a session providing guidance to attendees on how best to handle delinquent accounts where someone living in the home relies on lifesaving equipment. While every state has its own policies and procedures, almost every state, with some exceptions, limit the ability of the utility to terminate services where the shutoff will substantially impact the condition of someone living in the home. In some states, there is a portion of responsibility on the utility to determine if anyone at the address would qualify for the protection, while others place more of the obligation on an impacted person to notify the utility. However, all is not lost in these situations as the customer remains responsible for the bills incurred, and some states require the customer to maintain some level of minimum payment in order to maintain service.
It is important for each utility to know the specific regulations for each state so that they are not only in compliance with the regulations, but also so that they can maximize recovery in those situations.
To the extent possible, it is important for the utility to monitor the service and determine if protection should continue, due to death, relocation, etc., and that the person with a medical condition continues to reside at the residence so that customers do not improperly exploit the prior protections.
2. Focus on AI
As has been the case over the last several years, the topic of AI and how it can best be implemented was a frequent topic of discussion. AI and automation are key resources in responding to staffing challenges, while effectively increasing revenue while limiting expenses. The progress made over the last few years has been dramatic and utility companies and their vendors are progressing further and further with AI strategies to respond to consumers in a variety of situations. This is not limited to just accepting and processing payments, but also setting up appointments and responding to account holder concerns.
3. Security and Fraud
Another topic of frequent discussion, and related to the AI topic above, was the increasing sophistication of fraud efforts and information security. The increasing rate of ID theft and fraud, using either stolen or artificially generated information, has the potential to substantially impact revenue. Therefore, it is critical that efforts be made to confirm the information at the time of account setup so that recovery can be possible should the account go delinquent.
Similarly, the efforts to infiltrate the utility to access account holders’ information continues to change and evolve. Those who are attempting to get that information not only seek to attack weak access points of the utility’s account system, but also seek to use the utility vendors’ systems, emails, etc. to access the utility database. Once accessed, the utility has the potential for significant liability related to the data exposure. All efforts must be made to ensure a completely secure system.
If you have additional questions about this topic or want to learn more about Weltman's consumer and/or commercial collections solutions, feel free to contact Sara, Amanda, or Scott at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
