20020815_236.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
BILL EASTLAKE
RON LAW
GENE FADNESS
TONY A CLARK
WORKING FILE
FROM:BEVERLY BARKER
DATE:AUGUST 13, 2002
RE:PROPOSED REVISIONS OF THE UTILITY CUSTOMER RELATIONS
RULES (IDAPA 31.21.01000 ET SEQ.
Staff proposes that the Commission initiate a rulemaking proceeding to revise its Utility
Customer Relations Rules. Staff recommended the following revisions:
Rule 101. Deposit Requirements. Staff proposes to remove the reference to use of account
information from other utilities and add two new conditions under which a utility may collect a
deposit. Similar conditions currently apply to collection of deposits for telecommunications
service, but not to gas, electric or water service. The new conditions are: (1) the applicant does
not have verifiable previous service that was in existence for a period exceeding twelve (12)
months and does not pass an objective credit screen, and (2) the applicant requests service at a
residence where a prior customer still resides and where any balance for service to that prior
customer incurred at that location is past due or owing.
Due to concerns about customers' privacy, utilities no longer share customers ' account
information. This has made it difficult for a utility to assess the relative risk associated with an
applicant who has not already established a credit history with that utility. Utilities are also
exposed to greater credit risk when they are required to provide service to a location where a
DECISION MEMORANDUM AUGUST 13, 2002
prior customer who owes a bill still resides. The proposed changes will help utilities secure
high-risk accounts.
Rule 102. Other Deposit Standards Prohibited - Residential Customers. Staff proposes to
eliminate the prohibition to use commercial credit records in determining the need for a deposit.
Utilities have expressed an interest in using commercial credit records to determine credit risk.
This prohibition was previously eliminated from the Telephone Customer Relations Rules.
Rule 310. Insufficient Grounds for Termination of Service. Staff proposes to remove an
obsolete reference to written guarantees, which are no longer required by UCRR.
COMMISSION DECISION
Does the Commission wish to initiate a rulemaking proceeding as proposed by Staff?
i:udmemos/UCRR rule revisions
l./
DECISION MEMORANDUM AUGUST 13 , 2002
101. DEPOSIT REQUIREMENTS (Rule 101).
01. Residential Customers.No utility shall demand or hold a deposit from any
current residential customer or applicant for residential service without proof that the customer
or applicant is likely to be a credit risk or to damage the property of the utility. A history of late
payment or lack of previous history with the utility does not, in itself, constitute such proof. A
utility shall not demand or hold a deposit under this rule as a condition of service from a
residential customer or applicant unless one or more of the following criteria applies:
a. The customer or applicant has outstanding a prior residential service account with
the utility or any other nonmunicipal utility (v/hether regulated or unregulated)that accrued
within the last four (4) years and at the time of application for service remains unpaid and not in
dispute.
b. The customer s or applicant's service from any utility described in the previous
sentence has been terminated within the last four (4) years for one (1) or more of the following
reasons:
Nonpayment of any undisputed delinquent bill;
Misrepresentation of the customer or applicant's identity for the purpose of
obtaining utility service;
Failure to reimburse the company for damages due to negligent or intentional acts
of the customer; or
Obtaining, diverting or using service without the authorization or knowledge of
the utility.
Information provided by the applicant upon application for service is materially
false or materially misrepresentative of the applicant's true status.
The applicant does not have verifiable previous service with the utility that
was in existence for a period exceeding twelve (12) months and does not pass
an objective credit screen.
The applicant requests service at a residence where a prior customer still
resides and where any balance for service to that prior customer incurred at
that location is past due or owing.
11.
111.
IV.
DECISION MEMORANDUM AUGUST 13, 2002
02. Small Commercial Customers.A utility shall not demand or hold a deposit as a
condition of service from any current small commercial customer or applicant for small
commercial service unless one or more of the following criteria apply:a. Any of the criteria listed in Rule Subsection 101.01 of this rule are present.b. The applicant is applying for service for the first time from that utility.c. The customer fails to establish good credit.
03. Bankrupt Customers.If an applicant for service or a customer, either residential
or small commercial, has sought any form of relief under the Federal Bankruptcy Laws, has been
brought within the jurisdiction of the bankruptcy court for any reason in an involuntary manner
or has had a receiver appointed in a state court proceeding, then deposit may be demanded as
allowed by the Federal Bankruptcy Act of 1978 , as amended, and, in particular 11 USC 366, or
as directed by the state court.
102. OTHER DEPOSIT STANDARDS PROHIBITED--RESIDENTIAL CUSTOMERS
(Rule 102).
A utility shall not require a deposit or other guarantee as a condition of new or continued
residential utility service based upon residential ownership or location, income level, source of
income, employment tenure, nature of occupation commercial credit records, race, creed, sex
age, national origin, marital status, number of dependents, or any other criterion not authorized
by these rules. Rules governing deposits shall be applied uniformly.
310. INSUFFICIENT GROUNDS FOR TERMINATION OF SERVICE (Rule 310).
No customer shall be given notice of termination of service nor shall the customer s service be
terminated if:
01. Unpaid Bill Less than Fifty Dollars ($50).The customer s unpaid bill cited as
grounds for termination totals less than $50.00 or two months' charges for service , whichever is
less.
02. Unpaid Bill Not Customer The unpaid bill cited as grounds for termination is
for utility service to any other customer (unless that customer has a legal obligation to pay the
other customer s bill) or for any other class of service.
03. Failure to Pay on \Vrittcn Guarantee. The reason cited for termination is failure to
pay on a ':.rritton guarantee as provided for in Rule 103.
()4. 03. Non-Utility Service or Good.An unpaid bill results from the purchase of non-
utility goods or services.
DECISION MEMORANDUM AUGUST 13 , 2002