Customer Bankruptcy & Cut Out for Non-Payment

Customer Bankruptcy

In order to process customer bankruptcies, BGE will need to set up the customer with a new account to distinguish pre-petition and post-petition charges.  This will cause the electricity supplier relationship to be terminated in BGE's records. (Electricity suppliers should consult with their legal department as to whether, and how, the supplier can end the relationship with a bankrupt customer.)  In order to be in compliance with federal bankruptcy rules, BGE will then re-establish the electric supplier's relationship at the new post-petition account.  The easiest method for BGE to accomplish this, is to have the electricity supplier send in an enrollment at the new post-petition account and BGE correct the enrollment effective date in BGE's billing system to reflect the start date of the new post-petition account.  If an electricity supplier is unable to produce an enrollment, BGE will create an enrollment transaction for the new post-petition account with the start date of the new account.  

Completion of the termination order by BGE at the pre-petition account will generate an 814D-Drop transaction (See EDI Implementation Guidelines), but no drop confirmation letter will go out to the customer.

Accounts Cut-Out for Non-Payment of Distribution Charges

• When a BGE customer whose service is denied for non-payment of BGE's distribution charges fails to satisfy those charges within seven days of the denial, BGE will close the account.

• In closing the account, BGE will generate an 814D-Drop transaction that will go out to the electricity supplier with the appropriate Status Reason Code.  No drop notification letter will go out to the customer.

• If the customer wants to ever-re-establish their electricity relationship, they must contact the electricity supplier to re-apply.

Customers Who are Cut-Out-In-Error

• A Cut-Out-In-Error occurs when a new customer either provides or is put at an incorrect address thus terminating a customer who has not moved.  This causes BGE to send an 814D-Drop transaction to the terminated customer's electricity supplier.

• BGE will correct this cut-out-in-error by reactivating the customer who has not moved and reinstating the electricity supplier relationship by sending an 814R-Reinstatement transaction (See EDI Implementation Guidelines) to the terminated electricity supplier.