S1017B1268A04363 NAD:JMT 05/07/24 #90 A04363
AMENDMENTS TO SENATE BILL NO. 1017
Sponsor: SENATOR KEARNEY
Printer's No. 1268
Amend Bill, page 1, line 3, by striking out the comma after
"policy" and inserting
and
Amend Bill, page 1, line 4, by striking out "for" and
inserting
repealing provisions relating to
Amend Bill, page 1, line 5, by inserting after
"requirements,"
providing for security deposits, further providing
Amend Bill, page 1, line 6, by inserting after "service,"
for late payment charge waiver,
Amend Bill, page 2, lines 11 and 12, by striking out all of
said lines and inserting
Section 2. Section 1403 of Title 66 is amended to read:
Amend Bill, page 8, lines 11 through 18, by striking out all
of said lines and inserting
Section 3. Section 1404 of Title 66 is repealed:
[§ 1404. Cash deposits and household information requirements.
(a) General rule.--In addition to the right to collect a
deposit under any commission regulation or order, the commission
shall not prohibit a public utility from requiring a cash
deposit, payable during a 90-day period in accordance with
commission regulations, in an amount that is equal to one-sixth
of the applicant's estimated annual bill, at the time the public
utility determines a deposit is required, from the following:
(1) An applicant who previously received utility
distribution services and was a customer of the public
utility and whose service was terminated for any of the
following reasons:
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(i) Nonpayment of an undisputed delinquent account.
(ii) Failure to complete payment of a deposit,
provide a guarantee or establish credit.
(iii) Failure to permit access to meters, service
connections or other property of the public utility for
the purpose of replacement, maintenance, repair or meter
reading.
(iv) Unauthorized use of the utility service
delivered on or about the affected dwelling.
(v) Failure to comply with the material terms of a
settlement or payment arrangement.
(vi) Fraud or material misrepresentation of identity
for the purpose of obtaining utility service.
(vii) Tampering with meters, including, but not
limited to, bypassing a meter or removal of an automatic
meter reading device or other public utility equipment.
(viii) Violating tariff provisions on file with the
commission so as to endanger the safety of a person or
the integrity of the delivery system of the public
utility.
(2) Any applicant or customer who is unable to establish
creditworthiness to the satisfaction of the public utility
through the use of a generally accepted credit scoring
methodology, as provided in a commission-approved tariff, and
which employs standards for using the methodology that fall
within the range of general industry practice.
(3) A customer who fails to comply with a material term
or condition of a settlement or payment arrangement.
(a.1) Cash deposit prohibition.--Notwithstanding subsection
(a), no public utility may require a customer or applicant that
is confirmed to be eligible for a customer assistance program to
provide a cash deposit.
(b) Third-party guarantor.--Nothing in this section shall be
construed to preclude an applicant from furnishing a third-party
guarantor in lieu of a cash deposit. The guaranty shall be in
writing and shall state the terms of the guaranty. The guarantor
shall be responsible for all missed payments owed to the public
utility.
(c) Deposit hold period.--
(1) A public utility may hold a deposit until a timely
payment history is established.
(2) A timely payment history is established when a
customer has paid in full and on time for twelve consecutive
months.
(3) At the end of the deposit holding period as
established in paragraph (1), the public utility shall deduct
the outstanding balance from the deposit and return or credit
any positive difference to the customer.
(4) If service is terminated before the end of the
deposit holding period as established in paragraph (1), the
public utility shall deduct the outstanding balance from the
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deposit and return any positive difference to the customer
within 60 days of the termination.
(5) If a customer becomes delinquent before the end of
the deposit holding period as established in paragraph (1),
the public utility may deduct the outstanding balance from
the deposit.
(6) The public utility shall accrue interest on the
deposit until it is returned or credited.
(i) Interest shall be computed at the simple annual
interest rate determined by the Secretary of Revenue for
interest on the underpayment of tax under section 806 of
the act of April 9, 1929 (P.L.343, No.176), known as The
Fiscal Code.
(ii) The interest rate in effect when deposit is
required to be paid shall remain in effect until the
later of:
(A) the date the deposit is refunded or
credited; or
(B) December 31.
(iii) On January 1 of each year, the new interest
rate for that year will apply to the deposit.
(d) Adult occupants.--Prior to providing utility service, a
public utility may require the applicant to provide the names of
each adult occupant residing at the location and proof of their
identity.
(e) Failure to pay full amount of cash deposit.--A public
utility shall not be required to provide service if the
applicant or customer fails to pay the full amount of the cash
deposit within the time period under subsection (a).
(f) City natural gas distribution operation; additional
deposit rules for city natural gas distribution operations.--
Except for applicants who are subject to a deposit under
subsection (a), a city natural gas distribution operation may
require a deposit from the applicant as follows:
(1) If an applicant has household income above 300% of
the Federal poverty level, one-sixth of the applicant's
estimated annual bill paid in full at the time the city
natural gas distribution operation determines a deposit is
required; or
(2) If an applicant has household income no greater than
300% of the Federal poverty level, one-twelfth of the
applicant's estimated annual bill paid in full at the time
the city natural gas distribution operation determines a
deposit is required. Applicants who enroll into the Customer
Assistance Program made available by the city natural gas
distribution operation are not subject to this paragraph.
(g) Estimated annual bill.--When used in this section, an
estimated annual bill shall be calculated on the basis of the
annual bill to the dwelling at which service is being requested
for the prior 12 months or, if unavailable, a similar dwelling
in close proximity.
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(h) Time for paying deposits upon reconnection.--Applicants
and customers required to pay a deposit upon reconnection under
subsection (a)(1) shall have up to 90 days to pay the deposit in
accordance with commission regulations.]
Section 4. Title 66 is amended by adding a section to read:
§ 1404.1. Security deposits.
Notwithstanding any other provision of law or commission
regulation, a public utility may not require a cash deposit as a
condition for applicants or customers to obtain or continue
public utility service.
Section 5. Section 1405(a) and (b) of Title 66 are amended
to read:
Amend Bill, page 9, line 19, by striking out "3" and
inserting
6
Amend Bill, page 9, line 21, by striking out "1407(b)" and
inserting
1407(a), (b)
Amend Bill, page 13, lines 19 through 24, by striking out all
of said lines and inserting
[(a) Fee.--A public utility may require a reconnection fee
based upon the public utility's cost as approved by the
commission prior to reconnection of service following lawful
termination of the service.]
(a.1) Fee prohibition.--A public utility may not require a
customer or applicant with an income at or below 300% of the
Federal poverty level to provide a reconnection fee. A public
utility shall inform a customer or applicant of the prohibition
on reconnection fees specified under this subsection at the time
a reconnection fee is assessed.
Amend Bill, page 15, line 11, by striking out "4" and
inserting
7
Amend Bill, page 15, line 11, by inserting after "Sections"
1409,
Amend Bill, page 15, by inserting between lines 12 and 13
§ 1409. Late payment charge waiver.
A public utility shall waive late payment charges on any
customer accounts if the charges were improperly assessed. The
commission [may] shall order a waiver of any late payment
charges levied by a public utility as a result of a delinquent
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account for customers with a gross monthly household income not
exceeding [150%] 300% of the Federal poverty level.
Amend Bill, page 18, line 6, by striking out "5" and
inserting
8
Amend Bill, page 18, line 9, by striking out "6" and
inserting
9
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