Accrued Utility Service Charge Before Turn on

[Andrew Boston]

Hi Bigger Pockets Fam,

I paid cash for a home March 2024 that was uninhabitable and am just now getting around to rehabbing the property. During this time I did not have any utilities turned on, and when I called to have the water turned on today, I was told there was a charge of close to $500 as a service fee going back to when I purchased the home in March 2024. When I asked why I was paying for a service fee during a period where I never turned on service, the customer service person explained that even if I didn't have service turned on, and there was no usage, there is a monthly fee for the line that runs from the street to my house so that when I reconnect, they don't have to rip up the ground and put in a new line.

To me this sounded ridiculous and the power and gas companies are not charging any such fees. I have never had a home where I've waiting this long to turn utilities on, wondering if this is the norm?

Thanks!