1Amend Bill, page 4, lines 20 through 30; page 5, lines 1
2through 30; page 6, lines 1 through 23, by striking out all of
3said lines on said pages and inserting

4Section 2. Sections 1404 and 1405 heading, (a), (b)
5introductory paragraph and (2), (c), (d), (e) and (f) of Title
666 are amended to read:

7§ 1404. Cash deposits and household information requirements.

8(a) General rule.--In addition to the right to collect a
9deposit under any commission regulation or order, [the
10commission shall not prohibit] a public utility, [prior to or as
11a condition of providing utility service, from requiring] may 
12require a cash deposit, payable during a 90-day period, 50% with 
13the first bill, 25% with the second bill and 25% with the third 
14bill, in an amount that is equal to [one-sixth] one-twelfth of
15the applicant's estimated annual bill[, at the time the public
16utility determines a deposit is required,] from the following:

17(1) An applicant who previously received utility
18distribution services and was a customer of the public
19utility and whose service was terminated for any of the
20following reasons:

21(i) Nonpayment of an undisputed delinquent account.

22(ii) Failure to complete payment of a deposit,
23provide a guarantee or establish credit in accordance 
24with a generally accepted method approved by the 
25commission.

26(iii) Failure to permit access to meters, service
27connections or other property of the public utility for
28the purpose of replacement, maintenance, repair or meter
29reading.

30(iv) Unauthorized use of the utility service
31delivered on or about the affected dwelling.

32(v) Failure to comply with the material terms of a
33settlement or payment [agreement] arrangement.

34(vi) Fraud or material misrepresentation of identity
35for the purpose of obtaining utility service.

36(vii) Tampering with meters, including, but not
37limited to, bypassing a meter or removal of an automatic

1meter reading device or other public utility equipment.

2(viii) Violating tariff provisions on file with the
3commission so as to endanger the safety of a person or
4the integrity of the delivery system of the public
5utility.

6(2) Any applicant or customer who is unable to establish
7creditworthiness [to the satisfaction of the public utility]
8through the use of a generally accepted credit scoring
9methodology, as provided in a commission-approved tariff.

10(3) A customer who fails to comply with a material term
11or condition of a settlement or payment agreement.

12(b) Third-party guarantor.--Nothing in this section shall be
13construed to preclude an applicant from furnishing a third-party
14guarantor in lieu of a cash deposit. The guaranty shall be in
15writing and shall state the terms of the guaranty. The guarantor
16shall be responsible for [all missed payments owed to the public
17utility] the amount of the deposit that would otherwise be 
18required under this section.

19(c) Deposit hold period.--

20(1) A public utility may hold a deposit until a timely
21payment history is established [or for a maximum period of 24
22months]. The period shall not exceed 18 months.

23(2) A timely payment history is established when a
24customer has paid in full and on time for twelve consecutive
25months.

26(3) At the end of the deposit holding period as
27established in paragraph (1), the public utility shall deduct
28the outstanding balance from the deposit and return or credit
29any positive difference to the customer.

30(4) If service is terminated before the end of the
31deposit holding period as established in paragraph (1), the
32public utility shall deduct the outstanding balance from the
33deposit and return any positive difference to the customer
34within 60 days of the termination.

35(5) If a customer becomes delinquent before the end of
36the deposit holding period as established in paragraph (1),
37the public utility may deduct the outstanding balance from
38the deposit.

39(6) The public utility shall accrue interest on the
40deposit until it is returned or credited [the legal rate of
41interest pursuant to section 202 of the act of January 30, 
421974 (P.L.13, No.6), referred to as the Loan Interest and 
43Protection Law, and return such interest with the deposit].

44(i) Interest shall be computed at the simple annual
45interest rate determined by the Secretary of Revenue for
46interest on the underpayment of tax under section 806 of
47the act of April 9, 1929 (P.L.343, No.176), known as The
48Fiscal Code.

49(ii) The interest rate in effect when deposit is
50required to be paid shall remain in effect until the
51later of:

1(A) the date the deposit is refunded or
2credited; or

3(B) December 31.

4(iii) On January 1 of each year, the new interest
5rate for that year will apply to the deposit.

6[(d) Adult occupants.--Prior to providing utility service, a
7public utility may require the applicant to provide the names of
8each adult occupant residing at the location and proof of their
9identity.]

10(e) Failure to pay full amount of cash deposit.--A public
11utility[ shall not be required to provide service] may terminate 
12service, following notice pursuant to commission regulations, if
13the applicant or customer fails to pay the full amount of the
14cash deposit by the end of the 90-day payment period.

15[(f) City natural gas distribution operation; additional
16deposit rules for city natural gas distribution operations.--
17Except for applicants who are subject to a deposit under
18subsection (a), a city natural gas distribution operation may
19require a deposit from the applicant as follows:

20(1) If an applicant has household income above 300% of
21the Federal poverty level, one-sixth of the applicant's
22estimated annual bill paid in full at the time the city
23natural gas distribution operation determines a deposit is
24required; or

25(2) If an applicant has household income no greater than
26300% of the Federal poverty level, one-twelfth of the
27applicant's estimated annual bill paid in full at the time
28the city natural gas distribution operation determines a
29deposit is required. Applicants who enroll into the Customer
30Assistance Program made available by the city natural gas
31distribution operation are not subject to this paragraph.]

32(g) Estimated annual bill.--When used in this section, an
33estimated annual bill shall be calculated on the basis of the
34annual bill to the dwelling at which service is being requested
35for the prior 12 months or, if unavailable, a similar dwelling
36in close proximity. In cases in which customers and applicants 
37are newly enrolled in a customer assistance program, any 
38deposits will be waived. In other instances when a customer or 
39applicant previously enrolled in a customer assistance program 
40is required to pay a deposit, that deposit shall be limited to 
41no more than the amount of one month's bill under the customer 
42assistance program.

43(h) Time for paying deposits upon reconnection.--Applicants
44and customers required to pay a deposit upon reconnection under
45subsection (a)(1) shall have up to 90 days to pay the deposit in
46accordance with commission regulations.