3 Collier on Bankruptcy P 366.02

Summary

While the automatic stay of section 362(a) might be said to apply to any attempt by a utility to discontinue service, section 366(a) expressly precludes an action to alter, refuse or discontinue service if solely based upon the commencement of a case under title 11 or a failure to pay a debt that became due before the order for relief. This subsection, in effect, creates an automatic injunction effective upon the commencement of the case and is consistent with the broad stay under section 3621 and the broad powers of the court with respect to executory contracts under section 365.2 Although a contract to purchase utility services may be an executory contract, at least if the debtor has committed to purchase those services for some period of time, to the extent that section 366 is inconsistent with section 365, the more specific provisions of section 366 will govern. Therefore, a utility must provide service at the market rate, even if the ...