What does it mean when an electric company says they are going bankrupt?
You might hear in the news that your electric company is going bankrupt. It's a scary word, but what does it mean for you and your bills? The short answer is you will still have to pay your bill regardless if the electric company files for bankruptcy.
Electric companies have been providing electricity for a long time. For the most part, it's been reliable and, despite rate hikes from time to time, affordable. But some of these companies are in serious financial trouble. Some are even filing for bankruptcy! What does that mean for you?
When your electric utility says it is going bankrupt, this does not this mean that you are in danger of losing power The lights will not be turned off. Are you likely to have an outage or even a blackout? In some cases, yes. But mostly not.
The bankruptcy declaration is not a sign that the company will be shutting down all its operations. It's just a way for the company to keep itself from being shut down by something else: lawsuits and regulators. A new company will either be formed or take over operations. You’re going to be okay.
If you have a question about bankruptcy, call this bankruptcy law firm, they do free bankruptcy consultations:
Ascent Law LLC
8833 South Redwood Road Suite C
West Jordan UT 84088
801 676 5506
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