What is a Deferred Payment Agreement?
A Deferred Payment Agreement (DPA) is an agreement between you and a utility company to pay for back bills in monthly installments. Before a utility company can disconnect your service (or refuse to reconnect it), it must offer you a DPA. If you can afford to make this agreement, it will allow you to clear up back bills through agreed-upon monthly payments while you pay your current bills. In exchange, the utility company agrees not to disconnect your service or agrees to reconnect it. How will I be offered a DPA? The utility company must make a reasonable effort to contact you to discuss a DPA before it cuts off your service. Also, if you attempt to have your service reconnected, the utility company must discuss a DPA with you. Either shortly before or at the same time you are threatened with a disconnect, you probably will receive in the mail a “standard DPA,” which calls for you to make a downpayment and fairly high monthly payments on the amount you owe, or your service will be dis
