Issue Alert - 05-11-01

The PSC has adopted and the Governor has signed the following billing rules that utility companies must follow during the winter months, November through March. These rules only apply to companies under the PSC’s jurisdiction i.e. electric companies and investor-owned natural gas. It does not have jurisdiction over liquid propane providers or municipal utility companies.1) The due date for all utility service bills cannot be less than 22 days from the date the bill was sent to the customer. This allows customers 5 extra days to pay their bills. The current rule is only 17 days.2) The utility company cannot shutoff service or charge a late payment fee for failure to pay an “estimated” bill by the due date, unless the customer is subsequently delinquent on a bill which has an actual meter reading.3) For customers who negotiate settlement agreement with the utility to pay past due amounts, the maximum monthly amount that the utility can bill is $50 a month for the arrearage. Thus, the customer’s regular monthly bill would have a (maximum) $50 charge each month to pay the arrearage (from the settlement agreement), plus the amount of the customer’s regular monthly utility bill.4) The utility company cannot shut off service to the residential customer who is 65 years old or older. The utility company must be notified that the customer is 65 years old or older. 5) The utility company cannot shut off service to a residential customer whose income is 200% of the federal poverty level (see below) or below, PROVIDED that the customer pays a monthly amount equal to 6% of the customers estimated annual bill. (the current rule is for customers at 150 % of poverty or below and they must pay 7% of the estimated bill, and a portion of the past due amount.200% of the federal poverty level for a household size of 1 = $1,595; 2 = $ 2,139; 3 = $2,682; 4 = $3,225; 5 = $3,769; 6 = $4,312; 7 = 4,885; 8 = $5,399.Add $ 544 for each household member over eight. 6) The utility cannot require a deposit from a customer unless that customer had a shut off for non-payment within the past 12 months.

Advocates should make clients aware of these new provisions. They should notify customers who are 65 and older, or whose income is 200% of poverty or below that they should contact their utility company in the event that they receive a shut off notice. Agencies should also review shut off notices to make sure that the monthly statement meets with the above requirements.

Clients who receive shut off notices to review their bills to make sure that they comply with the above standards. If the bills do not comply, they should contact the utility company or the PSC. Clients who are 65 or older, or whose income is below 200% of poverty, and receive a shut off notice should contact the utility company and notify the company that their service cannot be shut off until March because of their age or income.