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Subchapter N. CREDIT AND DEPOSITS STANDARDS POLICY
PROCEDURES FOR APPLICANTS Sec.
56.281. Policy statement.
56.282. Credit standards.
56.283. Cash deposits; third-party guarantors.
56.284. Deposits for temporary service.
56.285. Payment of outstanding balance.
56.286. Written procedures.
56.287. General rule.
56.288. Payment period for deposits by applicants.
PROCEDURES FOR EXISTING CUSTOMERS
56.291. General rule.
56.292. Payment period for deposits by customers.
CASH DEPOSITS
56.301. Amount of cash deposit.
56.302. Deposit hold period and refund.
56.303. Application of deposit to bills.
56.304. Periodic review.
56.305. Refund statement.
56.306. Interest rate.
56.307. Application of interest.
Authority The provisions of this Subchapter N issued under the Public Utility Code, 66 Pa.C.S. § § 14011419, unless otherwise noted.
Source The provisions of this Subchapter N adopted October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473, unless otherwise noted.
Cross References This subchapter cited in 52 Pa. Code § 56.1 (relating to statement of purpose and policy); 52 Pa. Code § 56.251 (relating to statement of purpose and policy); and 52 Pa. Code § 56.252 (relating to definitions).
PROCEDURES FOR APPLICANTS
§ 56.281. 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 § 56.281 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.282 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.282 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (359034) to (359035).
Cross References This section cited in 52 Pa. Code § 56.283 (relating to cash deposits; third-party guarantors); and 52 Pa. Code § 56.302 (relating to deposit hold period and refund).
§ 56.283. Cash deposits; third-party guarantors.
If an applicant does not establish credit under § 56.282 (relating to credit standards), 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. The applicant furnishes a written guarantee from a responsible customer which, for the purposes of this section, means a customer who has or can establish credit, under § 56.282, to secure payment in an amount equal to that required for cash deposits.
(i) A guarantee must be in writing and state the terms of the guarantee.
(ii) The guarantor shall be discharged when the applicant has met the terms and conditions which apply under § § 56.302 and 56.303 (relating to deposit hold period and refund; and application of deposit to bills).
Authority The provisions of this § 56.283 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.283 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359035).
Cross References This section cited in 52 Pa. Code § 56.286 (relating to written procedures); and 52 Pa. Code § 56.302 (relating to deposit hold period and refund).
§ 56.284. Deposits for temporary service.
The provisions of this § 56.285 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.285 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (359035) to (359036).
Cross References The provisions of this § 56.286 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.286 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (359036) to (359037).
§ 56.287. 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 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 construction of facilities to provide the public utility service.
Authority The provisions of this § 56.287 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.287 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359037).
§ 56.288. Payment period for deposits by applicants.
The due date for payment of a deposit or an installment payment toward a deposit, other than an initial installment or a deposit required as a condition for the reconnection of service under § 56.291(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. An applicant may elect to pay any required deposits in three installments: 50% payable upon the determination by the public utility that the deposit is required, 25% payable 30 days after the determination and 25% payable 60 days after the determination. A public utility shall advise an applicant of the option to pay the requested security deposit in installments at the time the deposit is requested. 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 § 56.321 (relating to authorized termination of service). The applicant retains the option to pay the deposit amount in full anytime before the due date regardless of any deposit installments previously paid.
Authority The provisions of this § 56.288 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.288 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359037).
PROCEDURES FOR EXISTING CUSTOMERS
§ 56.291. 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 § 56.264 (relating to previously unbilled public utility service), under the following conditions:
(A) The public utility has complied with § 56.264. Compliance with a payment agreement 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.
(3) Failure to comply with payment agreement. 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 agreement.
(4) Cash deposit prohibition. 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 § 56.291 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.291 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (359037) to (359038).
Cross References This section cited in 52 Pa. Code § 56.288 (relating to payment period for deposits by applicants); 52 Pa. Code § 56.292 (relating to payment period for deposits by customers); 52 Pa. Code § 56.302 (relating to deposit hold period and refund); and 52 Pa. Code § 56.323 (relating to unauthorized termination of service).
§ 56.292. Payment period for deposits by customers.
The due date for payment of a deposit or any installment payment toward a deposit, other than a deposit required as a condition for the reconnection of service under § 56.291(2) (relating to general rule), may not be less than 21 days from the date of mailing or service on the customer of notification of the amount due. A customer may elect to pay a required deposit in three installments: 50% payable upon the determination by the public utility that the deposit is required, 25% payable 30 days after the determination and 25% payable 60 days after the determination. A public utility shall advise a customer of the option to pay the requested security deposit in installments at the time the deposit is requested. If the customer 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 § 56.321 (relating to authorized termination of service). The customer 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 § 56.292 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.292 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359038).
CASH DEPOSITS
§ 56.301. Amount of cash deposit.
(a) Applicants. A public utility may not require a cash deposit from an applicant in excess of the average estimated bill of the applicant for a period equal to one billing period plus 1 additional months service, not to exceed 4 months in the case of water and wastewater utilities and 2 months in the case of gas, electric and steam heat utilities, with a minimum deposit of $5.
(b) Existing customer. 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 wastewater utilities and 2 months in the case of gas and steam heat utilities, with a minimum of $5.
(c) 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 § 56.301 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.302 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.302 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359039).
Cross References This section cited in 52 Pa. Code § 56.283 (relating to cash deposits; third-party guarantors); and 52 Pa. Code § 56.304 (relating to periodic review).
§ 56.303. Application of deposit to bills.
The customer may elect to have a deposit applied to reduce bills for public utility service or to receive a cash refund.
Authority The provisions of this § 56.303 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.303 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359040).
Cross References This section cited in 52 Pa. Code § 56.283 (relating to cash deposits; third-party guarantors); and 52 Pa. Code § 56.304 (relating to periodic review).
§ 56.304. Periodic review.
If a customer is not entitled to refund under § 56.302 (relating to deposit hold period and refund), the public utility shall review the account of the customer each succeeding billing period and make appropriate disposition of the deposit in accordance with § 56.302 and § 56.303 (relating to application of deposit to bills).
Authority The provisions of this § 56.304 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.304 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359040).
§ 56.305. 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 § 56.305 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.305 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359040).
§ 56.306. 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 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 § 56.306 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1301, 14011419, 1501 and 1509.
Source The provisions of this § 56.306 amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (359040).
§ 56.307. Application of interest.
Interest shall be paid annually to the customer, or, at the option of either the utility or the customer, shall be applied to service bills.
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