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Subchapter C. CREDIT AND DEPOSITS STANDARDS POLICY
PROCEDURES FOR APPLICANTS Sec.
56.31. Policy statement.
56.32. Security and cash deposits.
56.33. Third-party guarantors.
56.34. Deposits for temporary service.
56.35. Payment of outstanding balance.
56.36. Written procedures.
56.37. General rule.
56.38. Payment period for deposits by applicants.
PROCEDURES FOR EXISTING CUSTOMERS
56.41. General rule.
56.42. Payment period for deposits by customers.
56.43. [Reserved].
CASH DEPOSITS
56.51. Amount of cash deposit.
56.52. [Reserved].
56.53. Deposit hold period and refund.
56.54. [Reserved].
56.55. [Reserved].
56.56. Refund statement.
56.57. Interest rate.
56.58. Application of interest.
56.6156.65. [Reserved].
Cross References This subchapter cited in 52 Pa. Code § 56.1 (relating to statement of purpose and policy).
PROCEDURES FOR APPLICANTS
§ 56.31. Policy statement.
An essential ingredient of the credit and deposit policies of each public utility shall be the equitable and nondiscriminatory application of those precepts to potential and actual customers throughout the service area without regard to the economic character of the area or any part thereof. Deposit policies must be based upon the credit risk of the individual applicant or customer rather than the credit history of the affected premises or the collective credit reputation or experience in the area in which the applicant or customer lives and without regard to race, age over 18 years of age, National origin, marital status, color, religious creed, ancestry, union membership, gender, sexual orientation, gender identity or expression, AIDS or HIV status, or disability.
Authority The provisions of this § 56.31 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.32 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1305, 14011419, 1501, 1504 and 1509.
Source The provisions of this § 56.32 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358958) to (358959).
Notes of Decisions Security Deposit
A utility may not require a security deposit from a consumer based solely upon its determination that she has no prior credit history. No sanction will be imposed against the utility when the consumer is not entirely without fault in the utilitys determination that a security deposit is necessary. West Penn Power Co. v. Pennsylvania Public Utility Commission, 521 A.2d 75 (Pa. Cmwlth. 1987).
Cross References This section cited in 52 Pa. Code § 56.33 (relating to third-party guarantors); 52 Pa. Code § 56.38 (relating to payment period for deposits by applicants); and 52 Pa. Code § 56.53 (relating to deposit hold period and refund).
§ 56.33. Third-party guarantors.
If an applicant does not establish credit under § 56.32 (relating to security and cash deposits), the public utility shall provide residential service when one of the following requirements is satisfied:
(1) Cash deposit. The applicant posts a cash deposit.
(2) Third-party guarantor. This section does not preclude an applicant from furnishing a third-party guarantor in lieu of a cash deposit. The guaranty must be in writing and state the terms of the guaranty. The guarantor shall be responsible for all missed payments owed to the public utility. For the purposes of this section, the term guarantor means a third-party who has or can establish credit under § 56.32.
Authority The provisions of this § 56.33 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504506, 1301, 14011419 and 1501.
Source The provisions of this § 56.33 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (263654).
Cross References This section cited in 52 Pa. Code § 56.36 (relating to written procedures).
§ 56.34. Deposits for temporary service.
Deposits for applicants for temporary service may be required in accordance with § 53.82(1) (relating to deposits).
Source The provisions of this § 56.35 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 14011419, 15011504 and 1509.
Source The provisions of this § 56.35 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended September 10, 1982, effective September 11, 1982, 12 Pa.B. 3093; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358960) to (358961).
Cross References The provisions of this § 56.36 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.36 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358961) to (358962).
§ 56.37. General rule.
Once an applicants application for service is accepted by the public utility, the public utility shall make a bona fide attempt to provide service within 3 business days, provided that the applicant has met all regulatory requirements. A bona fide attempt to provide service within 7 business days is permissible if street or sidewalk digging is required. A longer time frame is permissible with the consent of the applicant. If the investigation and determination of credit status is expected to take or in fact takes longer than 3 business days commencing the date after the application is made, the public utility shall provide service pending completion of the investigation. If the public utility cannot provide service by the time frames specified in this section, the public utility shall inform the customer of this fact and provide a reasonable estimate of when service will be provided. These requirements do not apply to new service installations and service extensions that require the construction of facilities to provide the public utility service.
Authority The provisions of this § 56.37 amended under the Public Utility Code, 66 Pa.C.S. § § 14011419.
Source The provisions of this § 56.37 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246328).
§ 56.38. Payment period for deposits by applicants.
(a) The due date for payment of a deposit or any installment payment toward a deposit, other than an initial installment or a deposit required as a condition for the reconnection of service under § 56.41(2) (relating to general rule) may not be less than 21 days from the date of mailing or service on the applicant of notification of the amount due.
(b) An applicant required by a public utility to pay a deposit under § 56.32 (relating to security and cash deposits) or an applicant paying a deposit for the reconnection of service under § 56.41(2) may be required by the public utility to pay 50% prior to, and as a condition of, the reconnection of service with 25% billed 30 days after reconnection of service and 25% billed 60 days after the reconnection of service. The public utility shall inform the applicant of the option to pay the deposit in the installments described in this subsection. If the applicant chooses to pay the deposit in installments, installment payments must be paid in full by the due date. Failure to pay an installment by the due date is grounds for termination of service as provided in § 56.81 (relating to authorized termination of service). The applicant retains the option to pay the deposit amount in full before the due date regardless of any deposit installments previously paid.
Authority The provisions of this § 56.38 issued under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1305, 1501 and 1504; amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.38 adopted April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (358963).
Cross References This section cited in 52 Pa. Code § 56.32 (relating to security and cash deposits).
PROCEDURES FOR EXISTING CUSTOMERS
§ 56.41. General rule.
A public utility may require an existing customer to post a deposit to reestablish credit under the following circumstances:
(1) Delinquent accounts. Whenever a customer has been delinquent in the payment of any two consecutive bills or three or more bills within the preceding 12 months.
(i) Prior to requesting a deposit under this section, the public utility shall give the customer written notification of its intent to request a cash deposit if current and future bills continue to be paid after the due date.
(A) Notification must clearly indicate that a deposit is not required at this time but that if bills continue to be paid after the due date a deposit will be required.
(B) Notification may be mailed or delivered to the customer together with a bill for public utility service.
(C) Notification must set forth the address and phone number of the public utility office where complaints or questions may be registered.
(D) A subsequent request for deposit must clearly indicate that a customer should register any question or complaint about that matter prior to the date the deposit is due to avoid having service terminated pending resolution of a dispute. The request must also include the address and telephone number of the public utility office where questions or complaints may be registered.
(ii) Except in the case of adjustments to budget billing plans, a public utility may issue a notification or subsequent request for a deposit based, in whole or in part, on a delinquent account arising out of a make-up bill as defined in § 56.14 (relating to previously unbilled public utility service) under the following conditions:
(A) The public utility has complied with § 56.14. Compliance with a payment arrangement by the customer discharges the delinquency and a notification or request for deposit may not thereafter be issued based on the make-up bill.
(B) If a make-up bill exceeds the otherwise normal estimated bill by at least 50% and if the customer makes payment in full after the bill is delinquent but before a notification of intent to request a deposit is given to the customer, a notification or request for deposit may not thereafter be issued based on the make-up bill.
(2) Condition to the reconnection of service. A public utility may require a deposit as a condition to reconnection of service following a termination in accordance with § 56.191 (relating to payment and timing).
(3) Failure to comply with payment arrangement. A public utility may require a deposit, whether or not service has been terminated, when a customer fails to comply with a material term or condition of a payment arrangement.
(4) Cash deposit prohibition. Notwithstanding paragraphs (1)(3), a public utility may not require a customer that, based upon household income, is confirmed to be eligible for a customer assistance program to provide a cash deposit. A customer is confirmed to be eligible for a customer assistance program by the public utility when the customer provides income documents or other information that he or she is eligible for state benefits based upon household income eligibility requirements that are consistent with those of the public utilitys customer assistance programs.
Authority The provisions of this § 56.41 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1305, 14011419, 1501, 1504 and 1509.
Source The provisions of this § 56.41 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358963) to (358965).
Cross References The provisions of this § 56.42 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1304, 14011419, 1501, 1504 and 1509.
Source The provisions of this § 56.42 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; corrected September 16, 1988, effective June 30, 1979, 18 Pa.B. 4245; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (358965).
§ 56.43. [Reserved].
Source The provisions of this § 56.43 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; reserved October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246330).
CASH DEPOSITS
§ 56.51. Amount of cash deposit.
(a) Applicants. A public utility may require a cash deposit equal to 1/6 of the applicants estimated annual bill 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.
(b) City natural gas operation. A city natural gas distribution operation may require a cash deposit from an applicant with a household income no greater than 300% of the Federal poverty level in an amount not in excess of 1/12 of the applicants estimated annual bill. A city natural gas operation may require a cash deposit from an applicant with a household income level above 300% of the Federal poverty level in the amount of 1/6 of the applicants estimated annual bill. 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.
(c) Existing customers. For an existing customer, the cash deposit may not exceed the estimated charges for service based on the prior consumption of that customer for the class of service involved for a period equal to one average billing period plus 1 average month, not to exceed 4 months in the case of water utilities and 2 months in the case of gas and electric utilities.
(d) Adjustment of deposits. The amount of a cash deposit may be adjusted at the request of the customer or the public utility whenever the character or degree of the usage of the customer has materially changed or when it is clearly established that the character or degree of service will materially change in the immediate future.
Authority The provisions of this § 56.51 amended under the Public Utility Code, 66 Pa.C.S. § § 14011419.
Source The provisions of this § 56.51 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246330).
§ 56.52. [Reserved].
Source The provisions of this § 56.52 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; reserved April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial page (37341).
§ 56.53. Deposit hold period and refund.
(a) A public utility may hold a deposit until a timely payment history is established.
(b) A timely payment history is established when a customer has paid in full and on time for any 12 consecutive months.
(c) At the end of the deposit holding period as established in subsection (a), the public utility shall deduct the outstanding balance from the deposit and return or credit any positive difference to the customer. At the option of the public utility, a cash deposit, including accrued interest, may be refunded in whole or in part, at any time earlier than the time stated in this section.
(d) If service is terminated before the end of the deposit holding period as established in subsection (a), 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.
(e) If a customer becomes delinquent before the end of the deposit holding period as established in subsection (a), the public utility may deduct the outstanding balance from the deposit.
(f) A public utility shall refund a deposit, along with any applicable interest, within 60 days upon determining that the customer or applicant from whom a deposit was collected is not subject to a deposit under § 56.32(e) (relating to security and cash deposits) or § 56.41(4) (relating to general rule).
Authority The provisions of this § 56.53 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 504506, 1301, 1305, 14011419, 1501, 1504 and 1509.
Source The provisions of this § 56.53 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (358967).
Cross References This section cited in 52 Pa. Code § 56.55 (relating to periodic review).
§ 56.54. [Reserved].
Authority The provisions of this § 56.54 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1305, 1501 and 1504; reserved under the Public Utility Code, 66 Pa.C.S. § § 14011419.
Source The provisions of this § 56.54 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; reserved October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246332).
Cross References This section cited in 52 Pa. Code § 56.55 (relating to periodic review).
§ 56.55. [Reserved].
Authority The provisions of this § 56.55 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1305, 1501 and 1504; reserved under the Public Utility Code, 66 Pa.C.S. § § 14011419.
Source The provisions of this § 56.55 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; reserved October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246332).
§ 56.56. Refund statement.
If a cash deposit is applied or refunded, the public utility shall mail or deliver to the customer a written statement showing the amount of the original deposit plus accrued interest, the application of the deposit to a bill which had previously accrued, the amount of unpaid bills liquidated by the deposit and the remaining balance.
Authority The provisions of this § 56.56 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1305, 14011419, 1501 and 1504.
Source The provisions of this § 56.56 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial pages (246332) and (324549).
§ 56.57. Interest rate.
The public utility shall accrue interest on the deposit until it is returned or credited.
(1) 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 Fiscal Code (72 P.S. § 806).
(2) The interest rate in effect when the deposit is required to be paid shall remain in effect until the date the deposit is refunded or credited, or December 31, whichever is later. A deposit initially accrues interest at the interest rate in effect at the time the deposit was required. This interest rate remains in effect until the end of the calendar year.
(3) On January 1 of each year, the new interest rate for that year will apply to the deposit. The new interest rate will be applied to the deposit for the calendar year starting January 1 until December 31 of that same year. Revised interest rates are calculated every subsequent January 1 and applied to the deposit until the deposit is refunded or applied to the account.
Authority The provisions of this § 56.57 amended under the Public Utility Code, 66 Pa.C.S. § § 331, 501, 504, 1301, 1305, 14011419, 1501, 1504, 1509 and 2911.
Source The provisions of this § 56.57 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended January 13, 1995, effective April 14, 1995, 25 Pa.B. 145; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358968) to (358969).
§ 56.58. Application of interest.
Interest shall be paid to the customer or, at the option of either the public utility or the customer, shall be applied to service bills.
Authority The provisions of this § 56.58 amended under the Public Utility Code, 66 Pa.C.S. § § 14011419.
Source The provisions of this § 56.58 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (324549).
§ § 56.6156.65. [Reserved].
Source The provisions of these § § 56.6156.65 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; reserved July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (205743) to (205744) and (241289).
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