Trial Engrossment of Amendment A04361 to Senate Bill 1017 P.N. 1268, Regular Session 2023-2024

A04361

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1017

Session of

2023

INTRODUCED BY BOSCOLA, FONTANA AND PENNYCUICK, DECEMBER 11, 2023

REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,

DECEMBER 11, 2023

AN ACT

Amending Title 66 (Public Utilities) of the Pennsylvania

Consolidated Statutes, in responsible utility customer

protection, further providing for declaration of policy, for

definitions, for cash deposits and household information

requirements, for payment arrangements, for termination of

utility service, for reconnection of service, for public

utility duties, for reporting of recipients of public

assistance, for liens by city natural gas distribution

operations, for reporting to General Assembly and Governor

and for nonapplicability and repealing provisions relating to

expiration.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

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

Consolidated Statutes is amended and the section is amended by

adding a paragraph to read:

§ 1402. Declaration of policy.

The General Assembly finds and declares as follows:

(1) Formal service rules were first adopted by the

Pennsylvania Public Utility Commission in 1978 with the

stated goal of enforcing uniform, fair and equitable

residential public utility service standards governing

eligibility criteria, credit and deposit practices, account

billing, termination and restoration of service procedures

and customer complaint procedures. These rules have not

successfully managed the issue of bill payment. Increasing

amounts of unpaid bills now threaten paying customers with

higher rates due to other customers' delinquencies.

* * *

(5) The General Assembly believes that it is appropriate

to recognize the applicability of this chapter to a water and

sewer authority in a city of the second class.

Section 2. Sections 1403, 1404(d) and 1405(a) and (b) 1405

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:

"Applicant." A natural person at least 18 years of age or an

emancipated minor not currently receiving service who applies

for residential service provided by a public utility or any

adult occupant whose name appears on the mortgage, deed or

lease, as identified in section 202 of the act of April 6, 1951

(P.L.69, No.20), known as The Landlord and Tenant Act of 1951,

of the property for which the residential public utility service

is requested. The term does not include a person who, within 30

days after service termination or discontinuance of service,

seeks to have service reconnected at the same location or

transferred to another location within the service territory of

the public utility.

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

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

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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].

"City natural gas distribution operation." As defined in

section 102 (relating to definitions).

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

customer's ability to meet bill payment obligations for utility

service.

"Customer." A natural person at least 18 years of age or an

emancipated minor in whose name a residential service account is

listed and who is primarily responsible for payment of bills

rendered for the service or any adult occupant whose name

appears on the mortgage, deed or lease, as identified in section

202 of The Landlord and Tenant Act of 1951, of the property for

which the residential utility service is requested. The term

includes a person who, within 30 days after service termination

or discontinuance of service, seeks to have service reconnected

at the same location or transferred to another location within

the service territory of the public utility.

"Customer assistance program." A plan or program sponsored

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 programs offered by a public utility, including

a water distribution utility or a 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.

"Electric distribution utility." [An entity providing

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facilities for the jurisdictional transmission and distribution

of electricity to retail customers, except building or facility

owners or operators that manage the internal distribution system

serving such building or facility and that supply electric power

and other related electric power services to occupants of the

building or facility.] The term have the same meaning as the

term "electric distribution company" in section 2803 (relating

to definitions).

"Formal complaint." A complaint filed before the

[Pennsylvania Public Utility Commission] commission requesting a

legal proceeding before a [Pennsylvania Public Utility

Commission] commission administrative law judge or a mediation

under the management of a [Pennsylvania Public Utility

Commission] commission administrative law judge.

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

at least 18 years of age and emancipated minors in a residential

household who benefit from the public utility service, excluding

earned income received by household members under 18 years of

age who are not emancipated. 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.

"Informal complaint." A complaint filed with the

[Pennsylvania Public Utility Commission] commission by a

customer that does not involve a legal proceeding before a

[Pennsylvania Public Utility Commission] commission

administrative law judge or a mediation under the management of

a [Pennsylvania Public Utility Commission] commission

administrative law judge.

"LIHEAP" or "Low Income Home Energy Assistance Program." A

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federally funded program authorized by 42 U.S.C. §§ 8621

(relating to home energy grants), 8622 (relating to

definitions), 8623 (relating to state allotments), 8624

(relating to applications and requirements), 8625 (relating to

nondiscrimination provisions), 8626 (relating to payments to

States; fiscal year requirements respecting availability, etc.),

8627 (relating to withholding of funds), 8628 (relating to

limitation on use of grants for construction), 8629 (relating to

studies and reports) and 8630 (relating to renewable fuels) that

provides financial assistance in the form of cash and crisis

grants to low-income households for home energy bills and is

administered by the Department of [Public Welfare] Human

Services.

"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.

"Natural gas distribution service." [The delivery of natural

gas to retail gas customers utilizing the jurisdictional

facilities of a natural gas distribution utility.] As defined in

section 2202 (relating to definitions).

"Natural gas distribution utility." [A city natural gas

distribution operation or entity that provides natural gas

distribution services and may provide natural gas supply

services and other services. The term does not include either of

the following:

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(1) Any public utility providing natural gas

distribution services subject to the jurisdiction of the

Pennsylvania Public Utility Commission that has annual gas

operating revenues of less than $6,000,000 per year, except

where the public utility voluntarily petitions the commission

to be included within this definition or where the public

utility seeks to provide natural gas supply services to

retail gas customers outside its service territory.

(2) Any public utility providing natural gas

distribution services subject to the jurisdiction of the

commission that is not connected to an interstate gas

pipeline by means of a direct connection or an indirect

connection through the distribution system of another natural

gas public utility or through a natural gas gathering

system.] Shall have the same meaning as the term "natural gas

distribution company" in section 2202.

"Natural gas supply services." [The sale or arrangement of

the sale of natural gas to retail gas customers and services

that may be unbundled by the Pennsylvania Public Utility

Commission under section 2203(3) (relating to standards for

restructuring of natural gas utility industry). The term does

not include natural gas distribution service.] As defined in

section 2202.

"Occupant." (Reserved).

"Payment arrangement." An agreement whereby a customer or

applicant who admits liability for billed service is permitted

to amortize or pay the unpaid balance of the account in one or

more payments.

"Public utility." Any electric distribution utility, natural

gas distribution utility, small natural gas distribution

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utility, steam heat utility, wastewater utility or water

distribution utility in this Commonwealth that is within the

jurisdiction of the [Pennsylvania Public Utility Commission.]

commission. The term includes a city natural gas distribution

operation and a water and sewer authority in a city of the

second class.

"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 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.

"Small natural gas distribution utility." A public utility

providing natural gas distribution services subject to the

jurisdiction of the commission that:

(1) has annual gas operating revenues of less than

$6,000,000 per year; or

(2) is not connected to an interstate gas pipeline by

means of a direct connection or any indirect connection

through the distribution system of another natural gas public

utility or through a natural gas gathering system.

"Steam heat utility." An entity producing, generating,

distributing or furnishing steam for the production of heat or

to or for the public for compensation.

A04361 - 7 -

"Wastewater utility." An entity owning or operating

equipment or facilities for the collection, treatment or

disposal of sewage to or for the public for compensation. The

term includes separate companies that individually provide water

or wastewater service so long as the separate companies are

wholly owned by a common parent company.

" Water and sewer authority in a city of the second class. "

Shall have the same meaning as the term " authority " in section

3201 (relating to definitions).

"Water distribution utility." An entity owning or operating

equipment or facilities for diverting, developing, pumping,

impounding, distributing or furnishing water to or for the

public for compensation.

§ 1404. Cash deposits and household information requirements.

* * *

(d) Adult occupants.--Prior to providing utility service, a

public utility may require the applicant to provide the names of

each adult occupant at least 18 years of age and each

emancipated minor residing at the location and proof of their

identity.

* * *

§ 1405. Payment arrangements.

(a) General rule.--The commission is authorized to

investigate complaints regarding payment disputes between a

public utility, applicants and customers. The commission is

authorized to establish payment arrangements between a public

utility, customers and applicants within the limits established

by this chapter. The request for a payment arrangement is

properly viewed as a request for an initial payment arrangement

if a previous payment arrangement has been completed as a result

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of the customer making payments sufficient to retire the entire

balance that was the subject of that payment arrangement.

(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:

(1) [Five] Six years for customers with a gross monthly

household income level not exceeding 150% of the Federal

poverty level.

(2) [Three] Four years for customers with a gross

monthly household income level exceeding 150% and not more

than 250% of the Federal poverty level.

(3) [One year] Two years for customers with a gross

monthly household income level exceeding 250% of the Federal

poverty level and not more than 300% of the Federal poverty

level.

(4) [Six months] One year for customers with a gross

monthly household income level exceeding 300% of the Federal

poverty level.

* * *

(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

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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

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.

(f) Failure to comply with payment arrangement.--Failure of

a customer to comply with the terms of a payment arrangement

shall be grounds for a public utility to terminate the

customer's service. Pending the outcome of a complaint filed

with the commission, a customer shall be obligated to pay that

portion of the bill which is not in dispute and subsequent bills

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which are not in dispute.

Section 3. Sections 1406(b)(1)(i), (iii) and (iv), (c)(1)

(iii) and (v), (e)(2)(i) and (ii), (f), (g) and (h)(1)

introductory paragraph and (iii) and 1407(b) introductory

paragraph, (c)(2)(i) (c)(2) and (3) and (e) of Title 66 are

amended and the sections are amended by adding subsections to

read:

§ 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] 14 days prior to the date

of the proposed termination. The termination notice shall

remain effective for [60] 70 days. The written notice

shall be mailed by first class mail to the customer and

provided by electronic means if the customer

affirmatively consents to receive electronic notice of

termination and if the public utility has the capability

to provide electronic notification. Electronic notice of

termination shall mean by either email, text or both if

both are provided to the utility with appropriate

consent.

* * *

(iii) During the months of December through March,

unless personal contact has been made with the customer

or responsible adult at least 18 years of age or an

emancipated minor by personally visiting the customer's

residence, the public utility shall, within 48 hours of

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the scheduled date of termination, post a notice of the

proposed termination at the service location in a

conspicuous location.

(iv) After complying with [paragraphs] subparagraphs

(i), (ii) and (iii), the public utility shall [attempt to

make personal contact with the customer or responsible

adult], at the time service is terminated, post a notice

of termination in a conspicuous location at the service

location. Termination of service shall not be delayed for

failure to make personal contact.

* * *

(1) A public utility may immediately terminate service

for any of the following actions by the customer:

* * *

(iii) Tampering with meters or other public

[utility's] utility equipment.

* * *

(v) Tendering payment for reconnection of service

that is subsequently dishonored, revoked, canceled or

otherwise not authorized under subsection (h) and which

has not been cured or otherwise made full payment within

three business days of the public utility's notice to the

customer, made in accordance with the notice provisions

of subsection (b)(1)(ii), of the dishonored payment.

* * *

(e) Winter termination.--

* * *

(2) In addition to the winter termination authority set

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

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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] the 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] the household contains one or more persons who

are 65 years of age or over.

(ii) Has proven in accordance with commission rules

that [his] the household contains one or more persons 12

years of age or younger.

* * *

(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 apply:

(1) Service may not be terminated for the time period

specified in a medical certification. The maximum length of

the certification shall be 60 days.

(2) Certifications may be renewed in the same manner and

for the same time period as provided in this section if the

customer has met the obligation to make payment on all new

undisputed charges and provide payment towards any undisputed

outstanding balance with a minimum payment amount determined

by the commission, which shall be no less than $10.

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

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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 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.

(g.1) LIHEAP Crisis exceptions or other utility

assistance.--Notwithstanding subsection (g), a past-due balance

that would otherwise be subject to termination if not for the

provisions of subsection (e) is sufficient proof of crisis for

the purpose of obtaining a LIHEAP Crisis Grant or other utility

assistance from the Department of Human Services for a public

utility customer.

(h) Dishonorable tender of payment after receiving

termination notice.--

(1) After a public utility has provided a written

termination notice under subsection (b)(1)(i) [and],

attempted [telephone] contact as provided in subsection (b)

(1)(ii), and posted the notice of termination at the service

location as provided in subsection (b)(1)(iv), termination of

service may proceed without additional notice if:

* * *

(iii) a customer tenders payment electronically that

is subsequently dishonored, revoked, canceled or is

otherwise not authorized and which has not been cured or

otherwise made full payment within three business days of

the public utility's notice to the customer, made in

accordance with the notice provisions of subsection (b)

(1)(ii), of the dishonored payment.

A04361 - 14 -

* * *

§ 1407. Reconnection of service.

* * *

(a.1) Reconnection fee reimbursements.--Notwithstanding

subsection (a), a public utility shall return or credit a

customer's or applicant's reconnection fee who is enrolled in a

utility assistance program if the customer remains enrolled for

a duration of at least six months.

(b) Timing.--When service to a dwelling has been terminated

and provided the customer or applicant has met all applicable

conditions, the public utility shall reconnect service as

follows:

* * *

(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

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

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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 or applicant

if the customer, who is not covered under subparagraph

(iv), 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

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 the terms of a payment arrangement

established under section 1405 (relating to payment

arrangements) if the customer has not previously entered

into a payment arrangement established under section

1405.

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(3) Payment tendered by a customer to reconnect service

that is subsequently dishonored, revoked, canceled or is

otherwise not authorized under section 1406(h)(1) (relating

to termination of utility service) and which has not been

cured or otherwise made full payment within three business

days of the public utility's notice to the customer, made in

accordance with the notice provisions of section 1406(b)(1)

(ii), of the dishonored payment is grounds for immediate

termination under section 1406(c). A public utility may

require a customer or applicant to cure a dishonored payment,

as provided for in section 1406(h), as a condition of

entering into a payment agreement with the customer or

applicant for a remaining account balance.

* * *

(e) Approval.--A public utility may establish that an

applicant previously resided at a property for which residential

service is requested through the use of information on a

mortgage, deed or lease [information] as identified in section

202 of the act of April 6, 1951 (P.L.69, No.20), known as The

Landlord and Tenant Act of 1951, a commercially available

consumer credit reporting service or other methods approved as

valid by the commission.

Section 4. Sections 1410.1, 1413, 1414(a), 1415(3) and 1417

of Title 66 are amended to read:

§ 1410.1. Public utility duties.

(a) General rule.--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), the

public utility shall:

(1) Provide information about the public utility's

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universal service programs, including a customer assistance

program.

(2) Refer the 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.

(3) Have an affirmative responsibility to attempt to

collect payment on an overdue account. [The utility shall

report to the commission annually residential customer

accounts which have accumulated $10,000 or more in arrearages

and shall demonstrate what efforts are being taken to collect

the arrearages. Failure to make reasonable attempts to

collect payments on overdue accounts with arrearages in

excess of $10,000 may result in civil fines or other

appropriate sanctions by the commission.]

(4) Report to the commission on an annual basis the

number of medical certificates and renewals submitted and

accepted in the service territory.

(b) Duties.--The public utility shall:

(1) Contact customers with arrearages over 90 days past

due to offer payment arrangements, referrals and other

resources for which the customer or applicant may be

eligible.

(2) Report to the commission annually residential

customer accounts which have accumulated $10,000 or more in

arrearages. Failure to make reasonable attempts to collect

payments on overdue accounts with arrearages in excess of

$10,000 may result in civil fines or other appropriate

sanctions by the commission.

§ 1413. Reporting of recipients of public assistance.

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The Department of [Public Welfare] Human Services shall

annually [provide a city natural gas distribution operation with

the listing of recipients of public assistance in a city of the

first class. A city natural gas distribution operation] make

available to all public utilities with signed LIHEAP vendor

agreements a listing of recipients of LIHEAP or any other

utility assistance administered by the Department of Human

Services or public assistance in the Commonwealth. A public

utility shall not use the listing for anything but qualification

and continued eligibility for a [customer] utility assistance

program, Department of Human Services-administered utility

assistance program or LIHEAP.

§ 1414. Liens by city natural gas distribution operations.

(a) General rule.--A city natural gas distribution operation

furnishing gas service to a property is entitled to impose or

assess a municipal claim against the property and file as liens

of record claims for unpaid natural gas distribution service and

other related costs, including natural gas supply, in the court

of common pleas of the county in which the property is situated

or, if the claim for the unpaid natural gas distribution service

does not exceed the maximum amount over which the Municipal

Court of Philadelphia has jurisdiction, in the Municipal Court

of Philadelphia, pursuant to sections 3 and 9 of the act of May

16, 1923 (P.L.207, No.153), referred to as the Municipal Claim

and Tax Lien Law, and Chapter 22 (relating to natural gas

competition). A city natural gas distribution operation may

disclose to the property owner the amount of any lienable unpaid

service charges and other related costs.

* * *

§ 1415. Reporting to General Assembly and Governor.

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No later than five years following the effective date of this

chapter and every five years thereafter, the commission shall

submit a report to the Governor, the Chief Clerk of the House of

Representatives and the Secretary of the Senate reviewing the

implementation of the provisions of this chapter. The report

shall include, but not be limited to:

* * *

(3) The level of access to public utility services by

residential customers, including low-income customers.

* * *

§ 1417. Nonapplicability.

This chapter shall not apply to victims under a protection

from abuse order as provided by 23 Pa.C.S. Ch. 61 (relating to

protection from abuse) or a court order issued by a court of

competent jurisdiction [in this Commonwealth], which provides

clear evidence of domestic violence against the applicant or

customer.

Section 5. Section 1419 of Title 66 is repealed:

[§ 1419. Expiration.

This chapter shall expire December 31, 2024.]

Section 6. This act shall take effect in 60 days.

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