AN ACT

 

1Amending Title 66 (Public Utilities) of the Pennsylvania
2Consolidated Statutes, in responsible utility customer
3protection<-, further defining "public utility" and defining 
4"wastewater utility.":<- further providing for definitions, for 
5cash deposits and household information requirements, for 
6payment agreements, for termination of utility service, for 
7reconnection of service, for late payment charge waiver and 
8for complaints filed with commission; providing for public 
9utility duties; and further providing for automatic meter 
10readings, for reporting to General Assembly and Governor, for 
11nonapplicability and for construction.

12The General Assembly of the Commonwealth of Pennsylvania
13hereby enacts as follows:

<-14Section 1. The definition of "public utility" in section
151403 of Title 66 of the Pennsylvania Consolidated Statutes is
16amended and the section is amended by adding a definition to
17read:

18§ 1403. Definitions.

19The following words and phrases when used in this chapter
20shall have the meanings given to them in this section unless the
21context clearly indicates otherwise:

22* * *

1"Public utility." Any electric distribution utility, natural
2gas distribution utility [or], water distribution utility or
3wastewater utility in this Commonwealth that is within the
4jurisdiction of the Pennsylvania Public Utility Commission.

5* * *

6"Wastewater utility." An entity owning or operating
7equipment or facilities for the collection, treatment or
8disposal of sewage for the public for compensation.

9* * *

10Section 2. This act shall take effect in 60 days.

<-11Section 1. The definitions of "applicant," "customer,"
12"payment agreement" and "public utility," in section 1403 of
13Title 66 of the Pennsylvania Consolidated Statutes are amended
14and the section is amended by adding definitions to read:

15§ 1403. Definitions.

16The following words and phrases when used in this chapter
17shall have the meanings given to them in this section unless the
18context clearly indicates otherwise:

19"Applicant." A natural person not currently receiving
20service who applies for residential service provided by a public
21utility or any adult occupant whose name appears on the
22mortgage, deed or lease of the property for which the
23residential utility service is requested. The term does not 
24include a person who, within 30 days after service termination 
25or discontinuance of service, seeks to have service reconnected 
26at the same location or transferred to another location within 
27the service territory of the public utility.

28* * *

29"Creditworthiness." An assessment of an applicant's or
30customer's ability to meet bill payment obligations for utility

1service.

2"Customer." A natural person in whose name a residential
3service account is listed and who is primarily responsible for
4payment of bills rendered for the service or any adult occupant
5whose name appears on the mortgage, deed or lease of the
6property for which the residential utility service is requested.
7The term includes a person who, within 30 days after service 
8termination or discontinuance of service, seeks to have service 
9reconnected at the same location or transferred to another 
10location within the service territory of the public utility.

11* * *

12"Medical Certificate." A written document, in a form
13approved by the commission:

14(1) certifying that a customer or member of the
15customer's household is seriously ill or afflicted with a
16medical condition which will be aggravated by cessation of
17service; and

18(2) signed by a licensed physician, nurse practitioner 
19or physician's assistant.

20* * *

21"Payment [agreement] arrangement." An agreement whereby a
22customer who admits liability for billed service is permitted to
23amortize or pay the unpaid balance of the account in one or more
24payments.

25"Public utility." Any electric distribution utility, natural
26gas distribution utility, small natural gas distribution 
27utility, steam heat utility, wastewater utility or water
28distribution utility in this Commonwealth that is within the
29jurisdiction of the Pennsylvania Public Utility Commission.

30* * *

1"Small natural gas distribution utility." A public utility
2providing natural gas distribution services subject to the
3jurisdiction of the commission that:

4(1) has annual gas operating revenues of less than
5$6,000,000 per year; or

6(2) is not connected to an interstate gas pipeline by
7means of a direct connection or any indirect connection
8through the distribution system of another natural gas public
9utility or through a natural gas gathering system.

10"Steam heat utility." An entity producing, generating,
11distributing or furnishing steam for the production of heat or
12to or for the public for compensation.

13"Wastewater utility." An entity owning or operating
14equipment or facilities for the collection, treatment or
15disposal of sewage to or for the public for compensation. The
16term includes separate companies that individually provide water
17or wastewater service so long as the separate companies are
18wholly owned by a common parent company.

19* * *

20Section 2. Sections 1404(a) introductory paragraph, (1)(v),
21(2) and (3), (c)(1) and (6), (e) and (h), 1405 heading, (a), (b)
22introductory paragraph and (2), (c), (d), (e) and (f) of Title
2366 are amended to read:

24§ 1404. Cash deposits and household information requirements.

25(a) General rule.--In addition to the right to collect a
26deposit under any commission regulation or order, the commission
27shall not prohibit a public utility, [prior to or as a condition
28of providing utility service,] from requiring a cash deposit, 
29payable during a 90-day period in accordance with commission 
30regulations, in an amount that is equal to one-sixth of the

1applicant's estimated annual bill, at the time the public
2utility determines a deposit is required, from the following:

3(1) An applicant who previously received utility
4distribution services and was a customer of the public
5utility and whose service was terminated for any of the
6following reasons:

7* * *

8(v) Failure to comply with the material terms of a
9settlement or payment [agreement] arrangement.

10* * *

11(2) Any applicant or customer who is unable to establish
12creditworthiness to the satisfaction of the public utility
13through the use of a generally accepted credit scoring
14methodology, as provided in a commission approved tariff, and
15which employs standards for using the methodology that fall
16within the range of general industry practice.

17(3) A customer who fails to comply with a material term
18or condition of a settlement or payment [agreement]
19arrangement.

20* * *

21(c) Deposit hold period.--

22(1) A public utility may hold a deposit until a timely
23payment history is established [or for a maximum period of 24
24months].

25* * *

26(6) The public utility shall accrue interest on the
27deposit until it is returned or credited [the legal rate of
28interest pursuant to section 202 of the act of January 30, 
291974 (P.L.13, No.6), referred to as the Loan Interest and 
30Protection Law, and return such interest with the deposit].

1(i) Interest shall be computed at the simple annual
2interest rate determined by the Secretary of Revenue for
3interest on the underpayment of tax under section 806 of
4the act of April 9, 1929 (P.L.343, No.176), known as The
5Fiscal Code.

6(ii) The interest rate in effect when deposit is
7required to be paid shall remain in effect until the
8later of:

9(A) the date the deposit is refunded or
10credited; or

11(B) December 31.

12(iii) On January 1 of each year, the new interest 
13rate for that year will apply to the deposit. 

14* * *

15(e) Failure to pay full amount of cash deposit.--A public
16utility shall not be required to provide service if the
17applicant or customer fails to pay the full amount of the cash
18deposit within the time period under subsection (a).

19* * *

20(h) Time for paying deposits upon reconnection.--Applicants 
21and customers required to pay a deposit upon reconnection under 
22subsection (a)(1) shall have up to 90 days to pay the deposit in 
23accordance with commission regulations.

24§ 1405. Payment [agreements] arrangements.

25(a) General rule.--The commission is authorized to
26investigate complaints regarding payment disputes between a
27public utility, applicants and customers. The commission is
28authorized to establish payment [agreements] arrangements
29between a public utility, customers and applicants within the
30limits established by this chapter.

1(b) Length of payment [agreements] arrangements.--The length
2of time for a customer to resolve an unpaid balance on an
3account that is subject to a payment [agreement] arrangement
4that is investigated by the commission and is entered into by a
5public utility and a customer shall not extend beyond:

6* * *

7(2) [Two] Three years for customers with a gross monthly
8household income level exceeding 150% and not more than 250%
9of the Federal poverty level.

10* * *

11(c) Customer assistance programs.--Customer assistance
12program rates shall be timely paid and shall not be the subject
13of payment [agreements] arrangements negotiated or approved by
14the commission.

15(d) Number of payment [agreements] arrangements.--Absent a
16change in income, the commission shall not establish or order a
17public utility to establish a second or subsequent payment
18[agreement] arrangement if a customer has defaulted on a
19previous payment [agreement] arrangement established by a 
20commission order or decision. A public utility may, at its
21discretion, enter into a second or subsequent payment
22[agreement] arrangement with a customer.

23(e) Extension of payment [agreements] arrangements.--If the
24customer defaults on a payment [agreement] arrangements
25established under subsections (a) and (b) as a result of a
26significant change in circumstance, the commission may reinstate
27the payment [agreement] arrangement and extend the remaining
28term for an initial period of six months. The initial extension
29period may be extended for an additional six months for good
30cause shown.

1(f) Failure to comply with payment [agreement] 
2arrangement.--Failure of a customer to comply with the terms of 
3a payment [agreement] arrangement shall be grounds for a public 
4utility to terminate the customer's service. Pending the outcome 
5of a complaint filed with the commission, a customer shall be 
6obligated to pay that portion of the bill which is not in 
7dispute and subsequent bills which are not in dispute.

8Section 3. Section 1406(a)(2), (b)(1)(ii), (d), (f), (g) and
9(h)(1) of Title 66 are amended and subsection (c)(1) is amended
10by adding a subparagraph to read:

11§ 1406. Termination of utility service.

12(a) Authorized termination.--A public utility may notify a
13customer and terminate service provided to a customer after
14notice as provided in subsection (b) for any of the following
15actions by the customer:

16* * *

17(2) Failure to comply with the material terms of a
18payment [agreement] arrangement.

19* * *

20(b) Notice of termination of service.--

21(1) Prior to terminating service under subsection (a), a
22public utility:

23* * *

24(ii) Shall attempt to contact the customer or
25occupant[, either in person or by telephone, to provide
26notice of the proposed termination at least three days
27prior to the scheduled termination.] to provide notice of 
28the proposed termination at least three days prior to the 
29scheduled termination using one or more of the following 
30methods:

1(A) in person;

2(B) by telephone. Phone contact shall be deemed
3complete upon attempted calls on two separate days to
4the residence between the hours of [7] 8 a.m. and 9
5p.m. if the calls were made at various times each
6day[.]; or

7(C) by email, text message or other electronic
8messaging format, if the customer consented to be
9contacted using the method.

10* * *

11(c) Grounds for immediate termination.--

12(1) A public utility may immediately terminate service
13for any of the following actions by the customer:

14* * *

15(v) Tendering payment for reconnection of service
16that is subsequently dishonored, revoked, canceled or
17otherwise not authorized under subsection (h).

18* * *

19(d) Timing of termination.--

20(1) Notwithstanding the provisions of section 1503
21(relating to discontinuance of service), a public utility may
22terminate service for the reasons set forth in subsection (a)
23from Monday through [Friday] Thursday as long as the public
24utility can accept payment to restore service on the
25following day and can restore service consistent with section
261407 (relating to reconnection of service).

27(2) A public utility may terminate service on a Friday
28as long as the public utility is able to:

29(i) accept payment to restore service until 12 p.m.
30on a Saturday; and

1(ii) restore service by 6 p.m. on that day.

2* * *

3(f) Medical certification.--A public utility shall not
4terminate service to a premises when [a licensed physician or
5nurse practitioner has certified that the customer or a member
6of the customer's household is seriously ill or afflicted with a
7medical condition that will be aggravated by cessation of
8service] a customer has submitted a medical certificate to the 
9public utility. The customer shall obtain a [letter from a
10licensed physician] medical certificate verifying the condition
11and shall promptly forward it to the public utility. The medical
12certification procedure shall be implemented in accordance with
13commission regulations.

14(g) Qualification for LIHEAP.--A notice of termination to a
15customer of a public utility shall be sufficient proof of a
16crisis for a customer with the requisite income level to receive
17a LIHEAP Crisis Grant from the Department of Public Welfare or
18its designee as soon as practicable after the date of the 
19notice. Termination of service is not necessary to demonstrate 
20sufficient proof of crisis.

21(h) Dishonorable tender of payment after receiving
22termination notice.--

23(1) After a public utility has provided a written
24termination notice under subsection (b)(1)(i) and attempted
25telephone contact as provided in subsection (b)(1)(ii),
26termination of service may proceed without additional notice
27if:

28(i) a customer tenders payment which is subsequently 
29dishonored under 13 Pa.C.S. § 3502 (relating to 
30dishonor); [or]

1(ii) a customer tenders payment with an access 
2device, as defined in 18 Pa.C.S. § 4106(d) (relating to 
3access device fraud), which is unauthorized, revoked or 
4canceled[.]; or

5(iii) a customer tenders payment electronically that
6is subsequently dishonored, revoked, canceled or is
7otherwise not authorized.

8Section 4. Section 1407(c)(2)(i) introductory paragraph of
9Title 66 is amended and subsections (b) and (c) are amended by
10adding paragraphs to read:

11§ 1407. Reconnection of service.

12* * *

13(b) Timing.--When service to a dwelling has been terminated
14and provided the applicant has met all applicable conditions,
15the public utility shall reconnect service as follows:

16* * *

17(6) By 6 p.m. on a Saturday for a Friday termination
18under section 1406(d)(2) (relating to termination of utility
19service).

20(c) Payment to restore service.--

21* * *

22(2) A public utility may require:

23(i) Full payment of any outstanding balance incurred
24together with any reconnection fees by the customer or
25applicant prior to reconnection of service if the
26customer or applicant has an income exceeding 300% of the
27Federal poverty level or has defaulted on two or more
28payment [agreements] arrangements. If a customer or
29applicant with household income exceeding 300% of the
30Federal poverty level experiences a life event, the

1customer shall be permitted a period of not more than
2three months to pay the outstanding balance required for
3reconnection. For purposes of this subparagraph, a life
4event is:

5* * *

6(3) Payment tendered by a customer to reconnect service
7that is subsequently dishonored, revoked, canceled or is
8otherwise not authorized under section 1406(h)(1) is grounds
9for immediate termination under section 1406(c). A public
10utility may require a customer or applicant to cure a
11dishonored payment, as provided for in section 1406(h) as a
12condition of entering into a payment agreement with the
13customer or applicant for a remaining account balance.

14* * *

15Section 5. Sections 1409 and 1410 of Title 66 are amended to
16read:

17§ 1409. Late payment charge waiver.

18A public utility may waive late payment charges on any
19customer accounts if the charges were improperly assessed. The
20commission may [only] order a waiver of any late payment charges
21levied by a public utility as a result of a delinquent account
22for customers with a gross monthly household income not
23exceeding 150% of the Federal poverty level.

24§ 1410. Complaints filed with commission.

25The following apply:

26(1) The commission shall accept formal and informal 
27complaints only from customers or applicants who affirm that
28they have first contacted the public utility for the purpose
29of resolving the problem about which the customer wishes to
30file a complaint. If the customer has not contacted the

1public utility, the commission shall direct the customer to
2the public utility.

3(2) Pending the outcome of a formal or informal 
4complaint filed with the commission, the customer shall be
5obligated to pay that portion of the bill which is not in
6dispute and subsequent bills which are not in dispute.

7(3) For a formal complaint filing to be valid, the 
8customer [needs to] or applicant must provide a statement 
9attesting to the truth as to the facts alleged in the 
10complaint. All testimony in formal complaint proceedings must 
11be under oath.

12Section 6. Title 66 is amended by adding a section to read:

13§ 1410.1. Public utility duties.

14When a customer or applicant contacts a public utility to
15make a payment agreement as required by section 1410 (relating
16to complaints filed with commission), the public utility shall:

17(1) provide information about the public utility's
18universal service programs, including a customer assistance
19program; and

20(2) refer the customer or applicant to the universal
21service program administrator of the public utility to
22determine eligibility for a program and to apply for
23enrollment in a program.

24Section 7. Sections 1411, 1415 introductory paragraph, 1417
25and 1418 of Title 66 are amended to read:

26§ 1411. Automatic meter readings.

27All readings by an automatic meter reader device shall be
28deemed actual readings for the purposes of this title. Upon a 
29customer request, the public utility shall secure an in-person 
30meter reading to confirm the accuracy of an automatic meter
 

1reading device when a customer disconnects service or a new 
2service request is received. A public utility may charge a fee, 
3as provided in a commission-approved tariff.

4§ 1415. Reporting to General Assembly and Governor.

5No later than [two] five years following the effective date
6of this chapter and every [two] five years thereafter, the
7commission shall submit a report to the Governor, the Chief
8Clerk of the House of Representatives and the Secretary of the
9Senate reviewing the implementation of the provisions of this
10chapter. The report shall include, but not be limited to:

11* * *

12§ 1417. Nonapplicability.

13This chapter shall not apply to victims under a protection
14from abuse order as provided by 23 Pa.C.S. Ch. 61 (relating to 
15protection from abuse) or legally equivalent order issued by a 
16court of competent jurisdiction in this Commonwealth.

17§ 1418. Construction.

18Nothing in this chapter shall affect any rights or procedure 
19under the act of November 26, 1978 (P.L.1255, No.299), known as 
20the Utility Service Tenants Rights Act or the provisions of 
21Subchapter B of Chapter 15 (relating to discontinuance of 
22service to leased premises).

23Section 8. This act shall take effect in 60 days.