Charges, Fees, and Payment Plans

(a)In its tariffs, a utility shall provide a description of all charges or fees that the utility assesses resulting from regulated charges that are past due and service discontinuance and restoration. A utility may assess the following charges or fees at no higher than cost, as stated in its tariff:#

(I)a late payment charge for regulated charges that are past due and exceed $50;#

(II)a fee for discontinuance of service;#

(III)a fee for restoration of service;#

(IV)collection fees; and#

(V)any other regulated charges or fees provided in the utility's tariff.#

(b)In its tariffs, a utility shall have the following payment plans available for its customers:#

(I)an installment payment plan; and#

(II)a budget or level payment plan.#

(c)A utility shall have in its tariff an installment payment plan which permits a customer to make installment payments if one of the following applies.#

(I)The plan is to pay regulated charges from past billing periods and the past due amount arises solely from events under the utility's control (such as, without limitation, meter malfunctions, billing errors, utility meter reading errors, or failures to read the meter, except where the customer refuses to read the meter and it is not readily accessible to the utility). A utility shall advise a customer who is eligible for this type of plan of the customer's eligibility. At the request of the customer and at the customer's discretion, an installment payment plan under this subparagraph shall extend over a period equal in length to that during which the errors were accumulated and shall not include interest.#

(II)The customer pays at least ten percent of the amount shown on the notice of discontinuance for regulated charges and enters into an installment payment plan on or before the expiration date of the notice of discontinuance.#

(III)The customer pays at least ten percent of any regulated charges amount more than 30 days past due and enters into an installment payment plan on or before the last day covered by a medical certificate. A customer who has entered into and failed to abide by an installment payment plan prior to receiving a medical certificate shall pay all amounts that were due for regulated charges up to the date on which the customer presented a medical certificate which meets the requirements of subparagraph 4407(e)(IV) and then may resume the installment payment plan.#

(IV)If service has been disconnected, the customer pays at least any collection and reconnection charges and enters into an installment payment plan. This subparagraph shall not apply if service was discontinued because the customer breached a prior payment arrangement.#

(d)Installment payment plans shall include the following amounts that are applicable at the time the customer requests a payment arrangement:#

(I)the unpaid remainder of amounts due for regulated charges shown on the notice of discontinuance;#

(II)any amounts due for regulated charges not included in the amount shown on the notice of discontinuance which have since become more than 30 days past due;#

(III)all current regulated charges contained in any bill which is past due but is less than 30 days past the due date;#

(IV)any new regulated charges contained in any bill which has been issued but is not past due;#

(V)any regulated charges which the customer has incurred since the issuance of the most recent monthly bill;#

(VI)any other regulated charges and fees as described in paragraph (a) of this rule, except fees relating to service diversion, whether or not such fees have appeared on a regular monthly bill; and#

(VII)any applicable deposit, consistent with rule 4403.#

(e)A customer entering into a payment arrangement as described in paragraph (b) may modify their bill due date if the utility's billing system allows for such a change.#

(f)Within seven calendar days of entering into a payment arrangement with a customer, a utility shall provide the customer with this rule and a statement describing the payment arrangement. The statement describing the payment arrangement shall include the following:#

(I)the terms of the payment plan; and#

(II)a description of the steps which the utility will take if the customer does not abide by payment plan.#

(g)Except as provided in subparagraph (c)(I) of this rule, an installment payment plan shall consist, at a minimum, of equal monthly installments for a term selected by the customer but not to exceed 12 months. Notwithstanding the foregoing, a utility may enter into an installment payment plan with a customer for a term up to 24 months if it determines that this is warranted by extraordinary circumstances. In the alternative, the customer may choose a modified budget or level payment plan, or similar tariff payment arrangement in which the total due shall be added to the preceding year's total billing to the customer's premises, modified for any base rate or cost adjustment changes. The resulting amount shall be divided and billed in 11 equal monthly budget billing payments, followed by a settlement billing in the twelfth month, or shall follow other payment-setting practices consistent with the tariff plan available. Utilities may not require a customer to participate in a budget or level payment plan or automated billing as a prerequisite for entering into an installment payment plan.#

(h)For an installment payment plan entered into pursuant to this rule, the first monthly installment payment, and with the new charges (unless the new charges have been made part of the arrangement amount) shall be due on a date which is not earlier than the next regularly-scheduled due date of the customer who is entering into the installment payment plan. Succeeding installment payments, together with the new charges, shall be due in accordance with the due date established in the installment payment plan. Any payment not made on the due date established in the installment payment plan shall be considered in default. Any new charges that are not paid by the due date shall be considered past due, excluding those circumstances covered in subparagraph (c)(I) of this rule.#

(i)This rule shall not be construed to prevent a utility from offering any other installment payment plan terms to avoid discontinuance or terms for restoration of service, provided the terms are at least as favorable to the customer as the terms set out in this rule.#