Trial Engrossment of Amendment A05751 to House Bill 1077 P.N. 1104, Regular Session 2023-2024

A05751

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1077

Session of

2023

INTRODUCED BY MATZIE, MARSHALL, BOROWSKI, PISCIOTTANO, MADDEN,

HILL-EVANS, TAKAC, SANCHEZ, HADDOCK, FIEDLER, NEILSON AND

MALAGARI, MAY 2, 2023

REFERRED TO COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY AND

UTILITIES, MAY 2, 2023

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, in responsible utility customer

protection, further providing for declaration of policy and

for definitions, repealing provisions relating to cash

deposits and household information requirements, providing

for security deposits, further providing for payment

arrangements, for termination of utility service, for

reconnection of service, for late payment charge waiver, for

complaints filed with commission and for public utility

duties, repealing provisions relating to reporting of

delinquent customers, further providing for reporting of

recipients of public assistance and for liens by city natural

gas distribution operations, providing for reporting to

commission and further providing for nonapplicability and for

expiration.

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, in responsible utility customer

protection, further providing for declaration of policy and

for definitions, providing for security deposits, further

providing for payment arrangements, for termination of

utility service, for reconnection of service, for complaints

filed with commission, for public utility duties, for

reporting to General Assembly and Governor, for

nonapplicability and for expiration; and making editorial

changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1402(4) of Title 66 of the Pennsylvania

Consolidated Statutes is amended to read:

§ 1402. Declaration of policy.

The General Assembly finds and declares as follows:

* * *

[(4) The General Assembly believes that it is

appropriate to provide additional collection tools to city

natural gas distribution operations to recognize the

financial circumstances of the operations and protect their

ability to provide natural gas for the benefit of the

residents of the city.]

Section 2. The definitions of "change in income,"

"creditworthiness," "customer assistance program," "household

income," "medical certificate," "public utility" and

"significant change in circumstance" in section 1403 of Title 66

are amended to read:

§ 1403. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Change in income." A decrease in household income of [20%]

5% or more [if] of the customer's household income. [level

exceeds 200% of the Federal poverty level or a decrease in

household income of 10% or more if the customer's household

income level is 200% or less of the Federal poverty level.]

"Creditworthiness." An assessment of an applicant's [or

customer's] ability to meet bill payment obligations for utility

service.

* * *

"Customer assistance program." A plan or program sponsored

A05751 - 2 -

by a public utility for the purpose of providing universal

service and energy conservation, as defined by section 2202

(relating to definitions) or 2803 (relating to definitions), or

other assistance program offered by a public utility, including

a water distribution utility or wastewater utility, in which

customers make monthly payments based on household income and

household size and under which customers must comply with

certain responsibilities and restrictions in order to remain

eligible for the program.

* * *

"Household income." The combined gross income of all adults

in a residential household who benefit from the public utility

service. The term shall include a verbal attestation of

household income provided by a customer or applicant to a public

utility for the purpose of an income-based or other requirement

under this chapter.

* * *

"Medical certificate." A written document, in a form

approved by the commission:

(1) certifying that a customer or member of the

customer's household is seriously ill or has been diagnosed

with a medical condition which requires the continuation of

service to treat the medical condition; and

(2) signed by a licensed physician, nurse practitioner

[or], physician's assistant, registered nurse or licensed

social worker.

* * *

"Public utility." Any electric distribution utility, natural

gas distribution utility, small natural gas distribution

utility, steam heat utility, wastewater utility or water

A05751 - 3 -

distribution utility in this Commonwealth that is within the

jurisdiction of the Pennsylvania Public Utility Commission. The

term includes a municipal corporation furnishing public utility

service to a public utility consumer beyond the municipal

corporation's corporate limits in accordance with section 1501

(relating to character of service and facilities).

"Significant change in circumstance." Any of the following

criteria [when verified by the public utility and] experienced

by customers with household income less than 300% of the Federal

poverty level:

(1) The onset of a chronic or acute illness [resulting

in a significant loss in the customer's household income].

(2) [Catastrophic damage] Damage to the customer's

residence resulting in a significant net cost to the

customer's household.

(3) Loss of the customer's residence.

(4) Increase in the customer's number of dependents in

the household.

(5) Any other circumstance to be considered in the

commission's discretion, including a change in employment

status, death, injury, divorce, separation or other

substantial hardship.

* * *

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

A05751 - 4 -

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:

(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

A05751 - 5 -

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.

(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

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

A05751 - 6 -

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

A05751 - 7 -

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.

(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. Sections 1405(b) introductory paragraph, (c), (d)

and (e), 1406(b)(1)(i) and (ii) and (2), (d), (e), (f) and (g)

A05751 - 8 -

and 1407(a) and (c)(2) of Title 66 are amended and the sections

are amended by adding subsections to read:

§ 1405. Payment arrangements.

* * *

(b) Length of payment arrangements.--[The] Except as

provided under subsection (b.1), the length of time for a

customer to resolve an unpaid balance on an account that is

subject to a payment arrangement that is investigated by the

commission and is entered into by a public utility and a

customer shall not extend beyond:

* * *

(b.1) Alternative payment arrangement.--If a customer's

monthly payment would exceed 20% of the customer's average

monthly bill based on the length of the payment arrangement

under subsection (b), the commission may extend the applicable

length of the payment arrangement not to exceed two times the

length of the payment arrangement the customer would otherwise

be entitled to under subsection (b).

[(c) Customer assistance programs.--Customer assistance

program rates shall be timely paid and shall not be the subject

of payment arrangements negotiated or approved by the

commission.]

(d) Number of payment arrangements.--[Absent a change in

income, the commission shall not] The commission shall establish

or order a public utility to establish a second [or subsequent]

payment arrangement if a customer has defaulted on a previous

payment arrangement established by a commission order or

decision. The commission may establish or order a public utility

to establish subsequent payment arrangements if the customer

experienced a change in income or a significant change in

A05751 - 9 -

circumstance. A public utility may, at its discretion, enter

into [a second or subsequent payment arrangement] additional

payment arrangements with a customer.

(e) Extension of payment arrangements.--If the customer

defaults on a payment arrangement established under subsections

(a) and (b) as a result of a significant change in circumstance,

the commission may reinstate the payment arrangement and extend

the remaining term for a period not to exceed the payment

arrangement period established under subsection (b.1) if not

already previously extended under subsection (b.1) or, if

previously extended under subsection (b.1), an initial period of

six months. The initial extension period may be extended for an

additional six months for good cause shown.

* * *

§ 1406. Termination of utility service.

* * *

(b) Notice of termination of service.--

(1) Prior to terminating service under subsection (a), a

public utility:

(i) Shall provide written notice of the termination

to the customer at least [ten] 20 days prior to the date

of the proposed termination. The termination notice shall

remain effective for 60 days. The public utility shall

provide the written notice via first class mail to the

customer, and by electronic means if the customer

affirmatively consents to receive electronic notice of

termination. Electronic notice of termination shall mean

by either email, text or both if both are provided to the

utility with appropriate consent.

(ii) Shall attempt to contact the customer or

A05751 - 10 -

occupant to provide notice of the proposed termination at

least three days prior to the scheduled termination,

using one or more of the following methods:

(A) in person;

(B) by telephone. Phone contact shall be deemed

complete upon attempted calls on two separate days to

the residence between the hours of 8 a.m. and 9 p.m.

if the calls were made at various times each day. The

public utility shall annually update customer contact

information and preferences for telephone

notification under this clause; or

messaging format consistent with the commission's

privacy guidelines and approved by commission order.

The public utility shall annually update customer

contact information and preferences for electronic

notification under this clause.

[(D)] In the case of electronic notification

only, the customer must affirmatively consent to be

contacted using a specific electronic messaging

format for purpose of termination.

* * *

(2) [The] Absent special circumstances, the public

utility shall not be required by the commission to take any

additional actions prior to termination.

* * *

(d) Timing of termination.--Notwithstanding the provisions

of section 1503 (relating to discontinuance of service), a

public utility may terminate service for the reasons set forth

in subsection (a) from Monday through Thursday as long as the

A05751 - 11 -

public utility can accept payment to restore service on the

following day and can restore service consistent with section

1407 (relating to reconnection of service). A public utility may

not terminate service on a Friday, a Federal or State holiday or

the business day immediately preceding a Federal or State

holiday .

(e) Winter termination prohibited.--

(1) Unless otherwise authorized by the commission, after

November 30 and before April 1, [an electric distribution

utility or natural gas distribution] a public utility shall

not terminate service to customers with household incomes at

or below 250% of the Federal poverty level except for

customers whose actions conform to subsection (c)(1). [The

commission shall not prohibit an electric distribution

utility or natural gas distribution utility from terminating

service in accordance with this section to customers with

household incomes exceeding 250% of the Federal poverty

level.

(2) In addition to the winter termination authority set

forth in paragraph (1), a city natural gas distribution

operation may terminate service to a customer whose household

income exceeds 150% of the Federal poverty level but does not

exceed 250% of the Federal poverty level, and starting

January 1, has not paid at least 50% of his charges for each

of the prior two months unless the customer has done one of

the following:

(i) Has proven in accordance with commission rules

that his household contains one or more persons who are

65 years of age or over.

(ii) Has proven in accordance with commission rules

A05751 - 12 -

that his household contains one or more persons 12 years

of age or younger.

(iii) Has obtained a medical certification in

accordance with commission rules.

(iv) Has paid to the city natural gas distribution

operation an amount representing at least 15% of the

customer's monthly household income for each of the last

two months.

(3) At the time that the notice of termination required

by subsection (b)(1)(i) is provided to the customer, the city

natural gas distribution operation shall provide notice to

the commission. The commission shall not stay the termination

of service unless the commission finds that the customer

meets the criteria in paragraph (2)(i), (ii), (iii) or (iv).]

(e.1) Summer termination prohibited.--Unless otherwise

authorized by the commission, after June 30 and before September

1, a public utility may not terminate service to a customer with

a household income at or below 250% of the Federal poverty level

except for customers whose actions conform to subsection (c)(1).

(f) Medical certification.--A public utility shall not

terminate service to a premises when a customer has submitted a

medical certificate to the public utility. The customer shall

obtain a medical certificate verifying the condition and shall

promptly forward it to the public utility. The medical

certification procedure shall be implemented in accordance with

commission regulations. The following shall apply:

(1) If, prior to termination of service, a public

utility employee is informed that an occupant is seriously

ill or has a medical condition and that the customer is

seeking a medical certificate, termination of service may not

A05751 - 13 -

occur for at least seven days. If a medical certificate is

not produced within that seven-day period, the public utility

may resume the termination process at the point where the

process was suspended.

(2) A public utility may not terminate s ervice for at

least 90 days from the date of submission of a medical

certificate or six months from the date of submission where a

medical certificate indicates a long-term or chronic illness.

(3) A public utility may not limit the number of medical

certificates that a licensed medical or social service

provider is permitted to issue under this subsection.

(g) Qualification for LIHEAP or other utility assistance.--A

notice of termination to a customer of a public utility shall be

sufficient proof of a crisis for a customer with the requisite

income level to receive a LIHEAP Crisis Grant or other utility

assistance from the Department of [Public Welfare] Human

Services or its designee as soon as practicable after the date

of the notice. Termination of service is not necessary to

demonstrate sufficient proof of crisis.

* * *

(i) Language access.--

(1) A public utility shall provide a written notice of

termination under this section in, at a minimum, English and

Spanish.

(2) A public utility shall include all of following with

a written notice of termination under this section:

(i) In each of the top five languages spoken in the

public utility's service territory, excluding English and

Spanish, a statement in substantially the following form:

This is a notice that your utility services will

A05751 - 14 -

be terminated.

(ii) A telephone number to call for further

information about the notice of termination.

(3) A public utility shall post a fully translated copy

of a written notice of termination under this section and a

description of the public utility's termination process in

English, Spanish and the top five additional languages spoken

in the public utility's service territory in a conspicuous

location on its publicly accessible Internet website.

§ 1407. Reconnection of service.

[(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.

* * *

(2) A public utility may require:

(i) Full payment of any outstanding balance incurred

[together with any reconnection fees] by the customer,

who is not covered under subparagraph (iv), or applicant

prior to reconnection of service if the customer or

applicant has an income exceeding 300% of the Federal

poverty level or has defaulted on two or more payment

A05751 - 15 -

arrangements. If a customer or applicant with household

income exceeding 300% of the Federal poverty level

experiences a life event, the customer or applicant

shall be permitted a period of not more than [three] six

months to pay the outstanding balance required for

reconnection. For purposes of this subparagraph, a life

event is:

(A) A job loss that extended beyond nine months.

(B) A serious illness that extended beyond nine

months.

(ii) [Full payment of any reconnection fees together

with repayment] Repayment over 12 months of any

outstanding balance incurred by the customer, who is not

covered under subparagraph (iv), or applicant if the

customer or applicant has an income exceeding 150% of the

Federal poverty level but not greater than 300% of the

Federal poverty level.

(iii) [Full payment of any reconnection fees

together with payment] Repayment over 24 months of any

outstanding balance incurred by the customer, who is not

covered under subparagraph (iv), or applicant if the

customer or applicant has an income not exceeding 150% of

the Federal poverty level. [A customer or applicant of a

city natural gas distribution operation whose household

income does not exceed 135% of the Federal poverty level

shall be reinstated pursuant to this subsection only if

the customer or applicant enrolls in the customer

assistance program of the city natural gas distribution

operation except that this requirement shall not apply if

A05751 - 16 -

the financial benefits to such customer or applicant are

greater if served outside of that assistance program.]

(iv) The payment of an outstanding balance in

accordance with terms of a payment arrangement

established under section 1405 (relating to p ayment

arrangements) if the customer has not previously entered

into a payment arrangement established under section

1405.

* * *

Section 6. Sections 1409, 1410(1) and 1410.1 of Title 66 are

amended to read:

§ 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

account for customers with a gross monthly household income not

exceeding [150%] 300% of the Federal poverty level.

§ 1410. Complaints filed with commission.

The following apply:

(1) The commission shall accept formal and informal

complaints only from customers or applicants who affirm that

they have first [contacted] attempted to contact the public

utility for the purpose of resolving the problem about which

the customer wishes to file a complaint. If the customer has

not [contacted] attempted to contact the public utility, the

commission shall direct the customer to the public utility.

* * *

§ 1410.1. Public utility duties.

(a) Screening.--A public utility shall screen a customer or

A05751 - 17 -

applicant to determine if the customer or applicant's household

income is at or below 300% of the Federal poverty level at the

time service is established and on an annual basis thereafter.

The public utility shall attempt to update the income

information under this subsection at least once per year.

(b) Payments.--When a customer or applicant contacts a

public utility to make a payment agreement as required by

section 1410 (relating to complaints filed with commission),

when t he public utility has information that the customer or

applicant is or was payment troubled or when the public utility

receives information that the household income of the customer

or applicant may qualify the customer or applicant for a

universal service and energy conservation program, the public

utility shall:

(1) Provide information about the public utility's

universal service programs, including a customer assistance

program[.] in, at a minimum, English and Spanish.

(1.1) Assess whether the customer or applicant is

eligible for the public utility's universal service and

conservation programs prior to negotiating a payment

arrangement.

(2) Refer [the] a potentially eligible customer or

applicant to the universal service program administrator of

the public utility to determine eligibility for a program and

to apply for enrollment in a program. The program

administrator or another representative of the public utility

shall be able to communicate with the customer or applicant

in , at a minimum, English and Spanish for the purpose of this

paragraph.

(3) Have an affirmative responsibility to attempt to

A05751 - 18 -