NOTICES
PENNSYLVANIA PUBLIC UTILITY COMMISSION
Chapter 14 Implementation; Doc. No. M-0004 1802F0002
[35 Pa.B. 5338] Public Meeting held
September 9, 2005Commissioners Present: Wendell F. Holland, Chairperson; James H. Cawley, Vice Chairperson, concurring and dissenting in part; Bill Shane; Kim Pizzingrilli; Terrance J. Fitzpatrick
Second Implementation Order By the Commission
On November 30, 2004, the Governor signed into law SB 677 that went into effect on December 14, 2004. The Act amended Title 66 by adding Chapter 14 (66 Pa.C.S. §§ 1401--1418), Responsible Utility Customer Protection Act (Act). The legislation is applicable to electric distribution companies, water distribution companies and larger natural gas distribution companies (those having an annual operating income in excess of $6,000,000).1 Steam and waste water utilities are not covered by Chapter 14.
Chapter 14 supersedes a number of Chapter 56 regulations, all ordinances of the City of Philadelphia and any other regulations that impose inconsistent requirements on the utilities. Chapter 14 expires on December 31, 2014, unless re-enacted. Two years after the effective date and every two years thereafter, the Commission must report to the General Assembly regarding the implementation and effectiveness of the Act. The Commission is directed to amend Chapter 56 and may promulgate regulations to administer and enforce Chapter 14.
Chapter 14 seeks to eliminate the opportunities for customers capable of paying to avoid paying their utility bills, and to provide utilities with the means to reduce their uncollectible accounts by modifying the procedures for delinquent account collections. The goal of these changes is to increase timely collections while ensuring that service is available to all customers based on equitable terms and conditions. 66 Pa.C.S. § 1402.
On January 28, 2005, the Commission issued a Secretarial Letter identifying general subject areas and encouraged interested parties to file written comments. In addition, on February 3, 2005, the Commission held a ''Roundtable Forum'' to address the implementation and application of Chapter 14.
Written comments were filed by the following interested parties: Energy Association of Pennsylvania (EAP), Office of Consumer Advocate (OCA), Philadelphia Gas Works (PGW), Community Legal Services (CLS), PECO Energy Company (PECO Energy), Pennsylvania Utility Law Project (PULP), Aqua Pennsylvania, Inc. (Aqua), Pennsylvania American Water, PPL Electric Utilities Corporation and PPL Gas Utilities Corporation, Pennsylvania Coalition Against Domestic Violence, Pennsylvania Apartment Association, Housing Alliance of Pennsylvania, and AARP.
Based upon our review of the comments filed by interested parties pursuant to our January 28, 2005 Secretarial Letter and the oral comments expressed at the Roundtable Forum, we issued an Implementation Order dated March 4, 2005 that addressed seven threshold issues. Although we considered these issues to be the most fundamental, we understood that this is an on-going process and that other implementation issues will need to be resolved in the future.
Therefore, by Secretarial Letter issued June 27, 2005, we informed interested parties of the next Chapter 14 Roundtable, July 1, 2005, and established agenda items for this meeting.
At this second Chapter 14 Roundtable, we again sought to engage in a discussion that promoted an exchange of ideas and views so that all interested parties will better understand differing positions and the rationales underlying them. Hopefully, all parties benefited again from a discussion of the interpretational issues inherent in the issue list relating to the implementation of Chapter 14. Moreover, the discussion should have continued to lay a solid foundation to enable the effective development of procedures, interim guidelines and subsequent regulations necessary to implement the new requirements of Chapter 14.
Written comments were again submitted by the EAP, OCA, PGW, CLS, PECO Energy, PULP, and Aqua. The comments were also intended to supplement oral representations at the July 1, 2005 Roundtable.
Another Roundtable discussion was held on July 21, 2005 to discuss PGW-Specific Chapter 14 issues. Written comments were filed by PGW, the OCA, CLS, and PULP. We shall also address these PGW-Specific issues in Section V of this Order. The resolution of the PGW-Specific issues should be considered in conjunction with the resolution of the Chapter 14 general utility issues appearing in the Section I, II, III and IV of this Order.
Before addressing the issues we will review some of the general comments submitted by the parties. PGW indicates that Chapter 14 has been tremendously beneficial to the Company and its customers as its revenue collection percentages have improved dramatically. The OCA notes that the number of terminations has increased markedly and fears that the tools to keep customers who have the ability to pay from evading utility payments, may have swept in customers who genuinely are not able to afford service. The OCA believes that the health and safety of the public requires that the Commission ensure that the protections contained in Chapter 14 are fully implemented and enforced. Aqua submits that the Chapter 56 requirement of acting in ''good faith'' should still be the standard for how the customer and utility conduct themselves. PULP requests that the Commission keep in mind that the goal of Chapter 14 is to improve payment activities by customers who have the ability to pay but is not intended to provide undue burdens on low-income customers and increase terminations. Similarly, CLS emphasizes that it is a purpose of the General Assembly ''to ensure that service remains available to all customers on reasonable terms and conditions.'' 66 Pa.C.S. § 1402(3). EAP believes that many of the participants at the Roundtable intended to ''seek to continue provisions or opportunities to delay payment.''
In reaching our dispositions herein, we have considered all the comments filed by the parties and, to the extent that we have not specifically referred to all the parties' comments on a particular issue, that omission does not mean the comments were not reviewed. Moreover, parties may have taken the same position on an issue and we shall not repeat their arguments. The areas we have identified for review and disposition are as follows:
Section I--Termination/Reconnection
Section II--Payment Arrangements (PARS)
Section III--Applications--Deposits
Section IV--Protection from Abuse (PFA)/Consumer Education
Section V--PGW--Specific IssuesFinally, the general consensus of the parties is that we issue this Order as a tentative decision to allow for another round of comments. We shall decline to adopt that recommendation as time will not permit us to consider additional arguments. The winter termination period is not far off and notices must be completed, procedures must be in place and utility personnel must be trained before this period begins. Therefore, we must move this Chapter 14 implementation period along in an expeditious manner.
I. TERMINATION/RECONNECTION
1. Policy for applying § 1406(e) to protect against erroneous winter terminations.
EAP opposes regulations that would set forth a methodology for determining income level. EAP believes that the primary source of income level information will be the consumers themselves and it is the customer's responsibility to provide accurate information when requested and for determining eligibility for Customer Assistance Programs (CAP). EAP also believes that the content of winter termination notices should not change.
With respect to the income criteria to be used to determine eligibility for winter termination, PGW recommends use of the same criteria employed by the Department of Public Welfare (DPW) to calculate LIHEAP eligibility and also utilized by the Commission to determine CAP eligibility. PGW also believes that it will have income and household size information in its database so that it will know the category into which the delinquent customer falls. PGW will indicate in its termination notices that, depending on a customer's income or family composition, the customer may be exempt from winter termination without Commission approval.
PECO Energy limited termination for nonpayment under § 1406(e)2 to Level 4 customers during the winter period of 2005. Currently, PECO Energy plans to limit terminations during the next winter period (12/1/05 to 3/31/06) to known Level 3 and Level 4 customers.
PECO Energy explains that it intends to continue educating its customers about Chapter 14 provisions and the importance of contacting the Company. However, PECO Energy asserts that it is the customer's responsibility to make PECO Energy aware of his or her income and eligibility for a payment agreement and documentation of income will be required to establish a customer's classification and participation in income-based provisions and programs, including termination avoidance.
According to the OCA, § 1406(e)(1) of Chapter 14 places an affirmative duty on utilities to positively ascertain whether a customer is at or below 250% of the Federal Poverty Level (FPL) prior to engaging in a winter termination, except when a customer falls within the provisions of § 1406(c)(1).3 In other words, the OCA submits that a utility shall not engage in winter terminations prior to positively verifying the customer's income level. The OCA believes that the customer should have been given every opportunity to enter into a payment agreement, and termination should not be considered until the customer has deviated from the payment agreement, and in these cases the utility already has, or should have, income information that was used to create the original payment agreement.
The OCA emphasizes that the Commission must ensure that establishing whether a customer is within the protected income class is the responsibility of the utilities and it is not a defense for a utility to claim that it did not know the customer's income level before it terminated a customer during the winter months.
CLS argues that utilities terminating service during the winter period pursuant to § 1406(e) of Chapter 14 should submit to the Bureau of Consumer Services (BCS) for approval, a clear, comprehensive and detailed statement of the process which they will follow in order to screen for customers protected from winter termination under Chapter 14. According to CLS, the burden is clearly then on the utility to determine household income prior to sending a winter termination notice. CLS maintains that § 1406(e)(1) prohibits utilities from terminating service during the winter in most circumstances to customers whose adult household income is at or below 250% of the federal poverty level.
CLS urges the Commission to require inclusion of a simple form with monthly bills for customers to complete and return to the utility asserting their qualification for an exemption from winter termination through (1) low-income, (2) being a victim of abuse, or (3) for Philadelphia Gas Works customers, through one of the other exemptions listed in § 1406(e)(2).
CLS adds that the same form should solicit information about the customer's language preference and need for an interpreter, as well as information about disabilities that may impede communication by written notice. Moreover, CLS submits this information should be solicited whenever a customer with a communication barrier does successfully make contact with the utility. Finally, CLS contends that this information should then be recorded so that winter heat will not be terminated without appropriate, accessible notification to the customer.
Resolution
We agree with EAP's comment that the primary source of income level information will be the consumers themselves. However, given the language at § 1406(e), it is appropriate to infer that this provision clearly places an obligation on the electric and gas utilities to implement procedures that attempt to identify accounts that are protected from termination during the winter period, not only prior to but also subsequent to the issuance of a notice. In this regard, PGW and other parties identify an important activity that must be part of an appropriate process to ascertain income to prevent erroneous winter termination in application of § 1406(e). Additionally, since water companies are not included under § 1406(e), they remain obligated to apply § 56.100 (winter termination procedures) when threatening termination to heat related water service between December 1 and March 31. We also clarify that § 56.100 is superseded by Chapter 14 to the extent that the termination steps set forth in § 56.100(1) and (2) are replaced by the termination steps at § 1406(b)(1)(i) through (iii).4
The important activity that PGW and other parties note is that all public utilities contain pertinent income and household size information in their data bases. Moreover, this information is routinely updated whenever the utility receives a contact from a delinquent customer seeking payment terms. The OCA reinforces this point with the comment that delinquent customers should have been given every opportunity to enter into a payment agreement, and termination should not be considered until the customer has deviated from the payment agreement, and in these cases the utility already has, or should have, income information that was used to create the original payment agreement.
To help avoid erroneous terminations, electric and gas utilities must use this income and household size information in their data bases to prevent the issuance of termination notices between November 21 and January 31 to households that fall into the income categories listed at § 1406(e)(1). These dates are important in light of § 1406(b)(1)(i) and 52 Pa. Code § 56.99 (Use of termination notice solely as collection device is prohibited). Section 1406(b)(1)(i) provides that a notice of termination shall remain effective for 60 days. Section 56.99, a section not superseded by Chapter 14, prohibits the use of termination notices ''solely'' as a collection device. From these two requirements, it follows that any notice issued between November 21 and January 31 to a household that the utility knows falls into the protected income categories listed at § 1406(e)(1) violates § 56.99 since termination is prohibited during the 60-day period that the notice is in effect and the notice therefore becomes ''solely'' a collection device. By way of further clarification, a notice issued no later than November 20 can be acted upon on November 30, the tenth day, and therefore has not been issued solely as a collection device. In such instances, if termination has not been effected within this 10-day period, the notice may be used during the remaining 50 days to qualify for LIHEAP pursuant to § 1406(g)5 . On the other end of the time frame noted above, notices issued on or after February 1 may initially be used to qualify for LIHEAP, but may also be acted upon April 1, i.e., within the 60-day time frame established under § 1406(b)(1)(i).
There are two exceptions to the policy set forth above. The first exception noted by the OCA and other parties involves the application of § 1406(c)(1) relating to grounds for immediate termination. The second one noted by PGW involves instances in which the utility, pursuant to § 1406(e)(1), seeks specific Commission authorization to terminate a household that falls into the protected income categories listed at § 1406(e)(1). According to PGW, a utility may selectively apply § 56.100(2) and file a written request to terminate service if, at the conclusion of the notification process at § 1406(b)(1)(i) through (iii), a reasonable agreement cannot be reached between the utility and customer.
With respect to the contention by the OCA and CLS that the burden is on the utility to determine household size and income prior to sending a winter termination notice, we do not agree that Chapter 14 requires the electric and gas utilities, except for PGW which must verify household income in light of requirements at § 1406(e) pertaining exclusively to PGW, to make such determinations prior to issuing a winter termination notice. While we intend that the policies contained in the instant Order help ensure the identification of the overwhelming majority of households that fall into the protected income categories listed at § 1406(e)(1), we do not believe that Chapter 14 prohibits the issuance of a winter termination notice to a delinquent account for which the company doesn't know household size and income. However, in light of the prohibition against terminating service to households that fall into the protected income categories listed at § 1406(e)(1), a utility must not complete the process and physically terminate service to a delinquent account for which the company doesn't know household size and income unless it makes a diligent, good faith attempt to verify that the household does not fall into the protected income category by following the processes required by 66 Pa.C.S. §§ 1401 et seq. and 52 Pa. Code §§ 56.1 et seq. as well as the notice provisions outlined in this Order. We also note that Chapter 14 at § 1407(b)(1)6 requires that erroneous terminations must be restored within 24 hours. Moreover, we remind utilities the Commission may authorize termination of service pursuant to § 1406(e)(1) in response to requests made pursuant to § 56.100. While we do not anticipate numerous applications of § 56.100 by utilities, we recognize that utilities may wish to make such requests in regard to egregious situations.
Finally, we have reviewed CLS's recommendation that the Commission require inclusion of a simple form with monthly bills for customers to complete and return to the utility asserting their qualification for an exemption from winter termination due to (1) low-income status, (2) being a victim under protection from abuse order, or (3) for Philadelphia Gas Works customers, through one of the other exemptions listed in § 1406(e)(2). Although we encourage utilities to consider the use of such a form, we will not require its use at this time. While the use of a form of this nature may be useful in identifying some accounts with the qualifications noted above, as well as identifying language preference, the need for an interpreter, and information about disabilities that may impede communication by written notice, we are reluctant to require this approach without sufficient evidence that bill stuffers will be completed and returned. Instead, as noted throughout the instant Order, we believe there are more effective methods of securing and retaining this type of information in the utility's data base.
Given the serious repercussions that winter terminations could have to life and/or property, we shall put all utilities on notice that violations of the § 1406(e) winter termination provisions and the failure to restore service pursuant to § 1407(b)(1), will be subject to the civil penalties allowed under the Public Utility Code. 66 Pa.C.S. § 3301.
2. Content of winter termination notices for application of § 1406(e).
EAP believes that the content of winter termination notices should not change. PGW intends to add language to its winter termination notice to alert customers that depending upon their income or household makeup, PGW may require Commission authorization before terminating their service in the winter and that the customer needs to call PGW to discuss their status. PGW believes that such a notice fully complies with all applicable legal requirements. PGW agrees that a utility may not terminate service to a customer for fraud and material misrepresentation unless there is demonstrable evidence that ''fraud'' or a serious misrepresentation has occurred--a single bad check or a single omission on the application will not satisfy the requirements of the Act.
PECO Energy believes that its termination notice provides the customer with the amount needed to avoid termination, including, if applicable, any special agreement catch-up amount--the notice also provides the amount PECO Energy will require to restore service if termination occurs, including the account balance, a deposit, and a reconnection fee.
PECO Energy explains that it will continue to mail delinquency notices during the winter period to all customers, regardless of income level as the Company believes year-around collection activities aid the Company in managing the cyclical nature of delinquencies, where customers build up balances during the winter which become unmanageable. Moreover, under the provisions of the LIHEAP program, customers meeting income guidelines are eligible for grants during the winter period if they are in receipt of a delinquency notice.
The OCA submits that before utilities engage in winter terminations under § 1406(e)(1), the utilities must provide adequate notice to customers that details the customer's rights and the process a customer can use to avoid termination. The OCA further submits that the best approach is for the Commission to create the form to ensure the uniformity and adequacy demanded by the occasion for its use.
The OCA submits that the notice form should include: the exact reason(s) for the proposed termination; clear instructions as to contact information for the proper person(s) at the utility the customer should speak with; contact information for those customers with disabilities or those customers needing translation assistance; the required documentation or information the customer must supply to avoid termination; the process a customer can use to resolve disputes as to the underlying reason for the proposed termination; information on the federal poverty guidelines by household size; and other available protections from termination such as being a victim under a Protection From Abuse Order.
The OCA submits that adequate notice will result in better protection for consumers and lower overall transaction costs for the utilities, which should far outweigh any front-end costs in using a more comprehensive form of notice. The OCA asserts that the Commission should create a well-constructed uniform notice form for all utilities to use and promulgate regulations as to its use. The OCA also submits that a separate notice form must be developed for PGW because of the additional requirements for termination and the means for avoiding termination by PGW customers as contained in 66 Pa.C.S. § 1406(e)(2).
CLS requests that the Commission require that utilities conducting winter terminations pursuant to Chapter 14 provide, in addition to satisfying existing requirements under Chapter 56, a termination notice which clearly informs the customer of the grounds on which termination may be prevented, and specific information on how to assert those grounds and prevent termination. CLS submits that the notice should include a chart listing the federal poverty level amounts by household size and must also clearly explain when and to whom this showing must be made, and include the existing medical certification language. Moreover, CLS maintains the notice must also provide information concerning the differences in procedures or requirements for reconnection of service for victims under Protection From Abuse Orders. CLS also contends that the Commission should clarify what termination date a utility may put on a notice.
CLS states that the Commission should also prohibit the sending of termination notices to individuals who are exempt from termination if the notice contains a termination date between December 1 and April 1, unless the utility actually seeks permission from the Commission to terminate service to that customer during the winter. 52 Pa. Code § 56.99.
In light of changing demographics in the Commonwealth, as well as federal civil rights law, CLS contends that notices and important forms, particularly those contemplating winter termination, must be made language accessible to individuals with Limited English Proficiency (LEP). Finally, the CLS maintains that notices must include a language accessible telephone number.
Resolution
With respect to the content of winter termination notices, we agree with the parties that recommend revisions to the standard 10-day notice before utilities engage in winter terminations under Section 1406(e). A revised notice will help prevent erroneous terminations by informing affected customers of the grounds on which termination may be prevented, as well as providing specific information on how to assert those grounds. Moreover, we agree that the notice should be uniform to avoid confusion on the part of customers receiving two notices, one from their electric company and another from their gas utility.
In addition to the content requirements for termination notices at 52 Pa. Code § 56.2 relating to the definition of termination notice, the following information must be included in the notice used by electric and gas utilities when applying § 1406(e): information on the federal poverty guidelines by household size; the required documentation or information the customer must supply to avoid termination; information on the protection from termination for victims under a Protection From Abuse Order, and contact information for those customers with disabilities or those customers needing translation assistance.
To ensure that utilities provide adequate notice to customers that details the customer's rights and the process a customer can use to avoid termination before utilities engage in winter terminations under Section 1406(e), we invite all parties to submit sample 10-day, 48-hour, and post-termination notices to the Commission's Bureau of Consumer Services (BCS) within 20 days from the date of this Order. Similar to the process we used to design the customer notice required at § 1416, Commission staff will use the suggestions submitted by the interested parties to design three sets of notices, two sets for PGW (See PGW-Specific Issue #1), and another set for the other electric and gas utilities. When developing sample notices for Commission staff review, we request that parties incorporate the plain language guidelines at § 69.251 into their design. The notices developed by Commission staff will be disseminated for additional feedback from the parties before they are finalized. We anticipate a short turnaround on this process so that appropriate notices can be in place for the upcoming winter period.
3. Standards for implementing § 1406(c)(1)(ii) ensure that appropriate proof of fraud is established before termination without notice is performed.
EAP submits that regulatory intervention is not needed to implement § 1406(c)(1)(ii) as the statute is clear. Moreover, EAP explains that there is no support for the Commission sanctioning fraudulent actions or material misrepresentation, which apparently assumes that opposing parties are making this argument. As far as passing a bad check, EAP also believes that the statute is clear and regulations are not needed. Apparently, it is EAP's position that a bad check would be cause for termination under § 1406(c)(1)(ii) or § 1406(h).7 Moreover, EAP de- clares that the practice of using bad checks to delay termination or restore service is over.
PGW believes that utilities are authorized to respond to a bad check with an immediate termination regardless of the time of year in which the termination takes place. First, if a check is dishonored after giving § 1406(h)(1) notices (10 days/attempted telephone contact), an immediate termination without further notice is authorized by Chapter 14. Moreover, PGW submits that if a customer tenders a bad check in the winter period, the same rules should apply because only customers already subject to termination are subject to § 1406(h). PGW reasons that a customer is only subject to a non-notice termination for tendering a check that is dishonored if he/she received a termination notice, and then received a 72 hour notice, and only then sought to stave off termination by using a bad check.
PGW believes this is a policy decision made by the General Assembly that if a customer uses a check to prevent termination the customer must be absolutely certain that there are sufficient funds to cover the amount for which it is drawn--or face immediate termination if the check bounces.
PGW raises another issue where a customer who is eligible for termination at the time the notices are sent but who might not be eligible (without Commission authorization) when the utility discovers the check has been dishonored. PGW submits that the utility should be able to immediately terminate service to the customer if there is evidence that the customer intentionally tendered a bad check.
PECO Energy says that it does not intend to terminate service without notice to any customer at or below 250% of the federal poverty level during the winter months for dishonorable tender of payment. Furthermore, for customers above 250% of the federal poverty level, PECO Energy states that these accounts will be subject to termination during the winter and will also be subject to termination for dishonorable tender of payment under § 1406(h). Moreover, if a safety issue exists which requires termination to protect public safety or the integrity of the utility delivery system, PECO Energy will terminate service regardless of the income level of the customer and regardless of the time of year.
The OCA recommends that the Commission promulgate regulations for the application of § 1406(c)(1)(i) as to what constitutes ''fraud'' or ''material misrepresentation'' before allowing utilities to engage in the extreme measure of terminating customers, in the winter, without prior notice. The OCA explains that allowing immediate termination without notice, particularly in the winter, is an extreme measure that has traditionally been reserved for only those situations where the safety of the system, employees, or other persons has been compromised. However, OCA points out that Chapter 14 allows immediate termination without notice for fraud or material misrepresentation--terms of art that the Commission has less experience with. According to the OCA, inadvertently bouncing a check is not fraud, and care must be taken that the drastic action of termination without notice does not occur without a proper basis. The OCA submits that it is reasonable for the Commission to promulgate regulations based on the well-established elements of common law fraud, or as an interim measure to publish a policy statement covering this area.
The OCA submits that where a utility has performed an immediate termination based on fraud or misrepresentation, there must be a procedure in place in which a customer can immediately challenge such a finding. The OCA suggests that the utility should be directed to file, within 24 hours of the termination, sufficient facts as to the basis for any such termination with BCS for an immediate assignment to an administrative law judge (ALJ) or a special agent--the customer involved should be granted an expedited/emergency review and immediate restoration and reimbursement of reasonable customer costs should be ordered if the ALJ finds the utility's proof is lacking or clearly in error.
Resolution
We disagree with the parties who argue that tendering a bad check or other type of dishonorable payment falls under the grounds for immediate termination without notice under § 1406(c)(1). If the actions set forth at § 1406(h) were intended to be included as grounds for immediate termination without notice, then § 1406(c)(1) would have incorporated § 1406(h) in its list of actions warranting immediate termination. Since these actions were not included as grounds for immediate termination without notice, we will not expand the list contained in § 1406(c)(1) by allowing immediate termination for actions covered under § 1406(h).
Furthermore, EAP's assertion that the practice of using bad checks to delay termination or restore service is over warrants additional comment. We believe it appropriate to clarify that any alleged Commission acquiescence to this practice ended in 1978 when we promulgated § 56.94(2). This section of Chapter 56 provides that a utility does not have to accept payment by check to avoid termination from any customer who has tendered a bad check within 12 months. Thus, if EAP member companies were allowing such action since 1978, it was because they failed to properly apply § 56.94(2).
Finally, PGW has raised the issue of a customer who is eligible for termination at the time the notices are sent but who might not be eligible (without Commission authorization) when the utility discovers the check has been dishonored. Under these circumstances, we do not agree that the utility should be able to immediately terminate service to the customer without first obtaining Commission authorization as required by § 1406(e)(1). The utility must first request Commission authorization and the request should include any evidence it has that the customer intentionally tendered a bad check. The Commission then will review this information when determining whether to authorize the termination. Moreover, as noted in the previous paragraph, customers cannot repeatedly tender bad checks to avoid termination if the utility applies § 56.94(2) in appropriate instances.
4. Application of § 1406(e) to rental units where the account is in the name of the landlord.
CLS states that Chapter 14 does not authorize winter terminations to premises occupied by residential tenants protected by the Utility Service Tenants Rights Act (USTRA) statutes, 68 Pa.P. S. §§ 399.1 et seq.
Resolution
Chapter 14 at § 1418 addresses one of the two statutes relating to discontinuance of service to leased premises by conveying the intent that Chapter 14 shall not affect any rights or procedures under USTRA (P. L. 1255, No. 299). In light of this intent, and given the Commission's longstanding policy (Secretarial Letter at Docket No. I-900002) that residential terminations not occur to landlord ratepayer accounts during the winter absent specific Commission authorization, we clarify that Chapter 14 does not authorize winter terminations to premises occupied by residential tenants protected by the USTRA statutes.
5. What is the proper amount that must be paid to avoid termination? Is it the amount on the notice or is it the amount plus any intervening utility bills?
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1 Small natural gas companies may voluntarily ''opt in'' to Chapter 14. 66 Pa.C.S. § 1403.
2 Section 1406(e)(1) provides as follows: (e) Winter Termination.--(1) unless otherwise authorized by the Commission, after November 30 and before April 1, an electric distribution utility or natural gas distribution utility shall not terminate service to customers with household incomes at or below 250436000f 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 2500f the federal poverty level.
3 Section 1406 (c)(1) provides as follows: (c) Grounds for immediate termination.--(1) A public utility may immediately terminate service for any of the following actions by the customer: (i) Unauthorized use of the service delivered on or about the affected dwelling; (ii) Fraud or material misrepresentation of the customer's identity for the purpose of obtaining service; (iii) Tampering with meters or other public utility's equipment; (iv) Violating tariff provisions on file with the Commission so as to endanger the safety of a person or the integrity of the public utility's delivery system.
4 Section 1406 (b)(1)(i) through (iv) provide as follows: Notice of termination 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 10 days prior to the date of the proposed termination. The termination notice shall remain effective for 60 days. (ii) Shall attempt to contact the customer or occupant, either in person or by telephone, to provide notice of the proposed termination at least three days prior to the scheduled termination. Phone contact shall be deemed complete upon attempted calls on two separate days to the residence between the hours of 7 A.M. and 9 P.M. if the calls were made at various times each day. (iii) During the months of December through March, unless personal contact has been made with the customer or responsible adult by personally visiting the customer's residence, the public utility shall, within 48 hours of the scheduled date of termination, post a notice of the proposed termination at the service location. (iv) After complying with paragraphs ii and iii, the public utility shall attempt to make personal contact with the customer or responsible adult at the time service is terminated. Termination of service shall not be delayed for failure to make personal contact.
5 Section 1406(g) proceeds as follow: (g) Qualification for LIHEAP.--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 from the Department of Public Welfare or its designee.
6 Section 1407(b) provides as follows: (b) Timing.--When service to a dwelling has been terminated and, provided the applicant has met all applicable conditions, the public utility shall reconnect service as follows:
(1) Within 24 hours for erroneous terminations or upon receipt by the public utility of a valid medical certification.
(2) Within 24 hours for terminations occurring after November 30 and before April 1.
(3) Within three days for erroneous terminations requiring street or sidewalk digging.
(4) Within three days from April 1 to November 30 for proper terminations.
(5) Within seven days for proper terminations requiring street or sidewalk digging.7 Section 1406(h) provides as follows: (h) Dishonorable tender of payment after receiving termination notice.--(1) After a public utility has provided a written termination notice under Section 1406(b)(1)(i) (relating to termination of utility service) and attempted telephone contact as provided in Section 1406(b)(1)(i), termination of service may proceed without additional notice if:
(i) A customer tenders payment which is subsequently dishonored under 13 Pa.C.S. § 3502 (relating to dishonor); or
(ii) A customer tenders payment with an access device, as defined in 18 Pa.C.S. § 4106(d) (relating to access device fraud), which is unauthorized, revoked or canceled.
(2) The public utility shall not be required by the Commission to take any additional actions prior to the termination.
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