Escheatment for Utility Companies: A Practical Compliance Guide

For utility providers, whether electric, gas, water, or telecom, managing unclaimed property is more than checking a regulatory box. It’s a reflection of operational integrity, accountability, and public trust.

At Eisen, we help utility companies navigate the escheatment process with structure, automation, and confidence to make compliance a natural part of delivering excellent service and accountability.

What Is Escheatment in the Utility Industry?

Escheatment is the legal process of reporting and remitting unclaimed property to the state after a period of inactivity, when the rightful owner can’t be located. In the utility sector, common types of unclaimed property include:

• Unclaimed customer deposit refunds
• Overpayments or duplicate payments
• Unpaid payroll or vendor checks
• Uncashed customer refunds
• Dormant credit balances

Each state defines its own dormancy periods, typically one to three years for utility-related property. Once that period expires, companies must report and remit the funds to the appropriate state agency.

The Escheatment Process for Utility Providers

Staying compliant requires a structured approach. Here’s how utility companies can manage escheatment effectively:

1. Identify Dormant Property

Start by identifying accounts with no recent activity or outstanding checks past their stale date. Dormancy indicators often include:

• No billing or usage activity
• No customer-initiated contact
• Returned mail
• Uncashed refund checks

2. Conduct Due Diligence Outreach

Most states require formal written outreach before escheatment. This includes:

• Mailing notices to the last known address
• Contacting via email (where permitted)
• Documenting all outreach attempts for audit purposes

Due diligence generally needs to be completed 60 to 120 days before the report is due, depending on state regulations.

3. Report and Remit the Unclaimed Property

Once outreach is complete:

• Generate the unclaimed property report in NAUPA format
• Submit the report electronically or via mail to each applicable state
• Remit funds via check or EFT, following state instructions

Some states may require extra documentation, especially for payroll related properties or any customer deposits that accrue interest.

4. Retain Documentation and Stay Audit-Ready

Accurate records are critical. Utility companies should retain:

• Customer contact history
• Proof of notices
• Reporting and remittance confirmations

Retention periods typically range from five to ten years. Maintaining accurate records protects your company in the event of an audit and reinforces your credibility with regulators and customers.

Common Escheatment Challenges in the Utility Sector

Utility companies face several unique hurdles, including:

• Seasonal or transient customers with outdated contact info
• Legacy billing systems and multiple payment platforms
• Returned checks tied to landlords or joint accounts
• Varying dormancy rules across jurisdictions
• Customer deposits that accrue interest and require detailed reconciliation

Without a clear process, these issues can lead to compliance risks, customer frustration, or unrecoverable funds.

How Eisen Helps Utility Companies Stay Compliant

Eisen’s suite of tools is built for utility companies that want clarity and control across their escheatment operations:

• Escheatment Manager: Track dormancy timelines, automate reporting workflows, and manage multi-state compliance - all in one place.
• Outreach Manager: Send compliant, timely notices that help reconnect customers and reduce escheatment volume.
• Disbursement Manager: Simplify payments and remittance with tools that streamline check issuance, EFTs, and recordkeeping.

Turn Compliance Into a Service Standard

Escheatment compliance doesn’t have to be burdensome. With the right tools and support, it can become a seamless part of serving your customers with integrity.

Eisen’s escheatment services make it easy for utility companies to meet regulatory requirements while building trust and operational excellence.