31-2101-0001_PUCnotice_prop.doc

BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF THE AMENDMENTS TO THE COMMISSION’S UTILITY CUSTOMER RELATIONS RULES (IDAPA 31.21.01.000 et seq.).
)
)
)
)
) CASE NO. 31-2101-0001

NOTICE OF PROPOSED
RULEMAKING

BY THIS NOTICE WE PROPOSE to amend several rules contained in the Commission’s Utility Customer Relations Rules (IDAPA 31.21.01.000). These rules were last updated in 1993.
Several of the proposed changes were recommended by various utilities. To mirror recent changes to our Telephone Customer Relations Rules (IDAPA 31.41.01.000), the Commission proposes to eliminate the use of “guarantees” in lieu of service deposits. The Commission is also proposing to modify Rule 310 to allow utilities to collect “reasonable” deposits rather than deposits based on two (2) months’ usage as a minimum threshold billing. The Commission is also recommending changes to its utility billing Rule 201 to require that bills be issued on a monthly basis and that utilities are required to list their mailing addresses and toll-free telephone numbers rather than merely the location of their nearest billing office. Utilities desiring to bill on other than monthly basis may request such authority from the Commission. The Commission also proposes to amend its Utility Customer Relations Rules to prohibit the billing for services or merchandise not ordered or otherwise authorized by the consumer.
The Commission proposes to clarify and simplify the notice procedures for terminating utility service. The Commission is suggesting the elimination of reporting requirements for termination of service during winter months. The Commission is recommending changes to its Rule 404 to require utilities to respond within ten (10) business days to a customer’s informal complaint as is the case with informal telephone complaints. Finally, the Commission is proposing to make several non-substantive changes to delete references to obsolete material and to correct typographical errors.
NOTICE OF PROPOSED RULEMAKING
The Idaho Public Utilities Commission hereby gives notice of its proposal to amend its Utility Customer Relations Rules (IDAPA 31.21.01.000). Two appendices are attached to this Notice. Appendix A is a Notice of Proposed Rule suitable for transmission to the Administrative Rules Coordinator. As explained in Appendix A, the comment deadline for this Notice of Proposed Rulemaking is October 25, 2000. The proposed rules are shown in Appendix B in legislative format.
PROPOSED by the Idaho Public Utilities Commission at Boise, Idaho this day of August 2000.

DENNIS S. HANSEN, PRESIDENT

MARSHA H. SMITH, COMMISSIONER

PAUL KJELLANDER, COMMISSIONER

ATTEST:

Myrna J. Walters
Commission Secretary

N:31-2101-0001_PUCnotice_prop

IDAPA 31—IDAHO PUBLIC UTILITIES COMMISSION

31.21.01—CUSTOMER RELATIONS RULES FOR GAS, ELECTRIC
AND WATER UTILITIES REGULATED BY
THE IDAHO PUBLIC UTILITIES COMMISSION
(THE UTILITY CUSTOMER RELATIONS RULES)

DOCKET NO. 31-2101-0001

NOTICE OF PROPOSED RULE

AUTHORITY: In compliance with Section 67-5220(1), Idaho Code, notice is hereby given of the Public Utilities Commission’s proposed rulemaking. This action is authorized pursuant to Sections 61-302, 61-303, 61-503, 61-507, Idaho Code.

PUBLIC HEARING SCHEDULE: Public hearings concerning this rulemaking will be scheduled if requested in writing by twenty-five (25) persons, a political subdivision, or an agency, not later than October 18, 2000.

The hearing site will be accessible to persons with disabilities. Requests for accommodation must be made not later than five (5) days prior to the hearing, to the Commission’s address set out below.

DESCRIPTIVE SUMMARY: The following is a non-technical explanation of the substance and purpose of the proposed rulemaking:

The Commission’s Utility Customer Relations Rules were last updated in 1993. The Commission is proposing several changes to these rules, some suggested by various utilities. First, the Commission is recommending the elimination of “guarantees” in lieu of service deposits. This change will mirror the elimination of guarantees in the Telephone Customer Relations Rules (IDAPA 31.41.01). Second, the Commission is recommending several changes to its utility billing Rule 201 including that bills be issued on a monthly basis and that utilities are required to list their mailing addresses and toll-free telephone numbers on the bills rather than merely the location of their nearest billing office. Third, the Commission would prohibit the billing for services or merchandise not ordered or otherwise authorized by the consumer and would specify how partial payments are to be applied to bills. Fourth, the notice procedures for terminating service are clarified and simplified. Fifth, the Commission proposes to eliminate reporting requirements of terminated service during winter months. Next, Rule 310.01 is modified to allow utilities to collect reasonable deposits rather than two (2) months’ usage as a minimum threshold billing. Finally, new Rule 404 requires utilities to respond within ten (10) business days to a customer’s informal complaint as is the case with telephone customer complaints.

FEE SUMMARY: There are no fees associated with this proposed rulemaking.

NEGOTIATED RULEMAKING: Pursuant to IDAPA 04.11.01.0811, negotiated rulemaking was not conducted because several of the proposed changes were recommended by utilities.

ASSISTANCE ON TECHNICAL QUESTIONS, SUBMISSION OF WRITTEN COMMENTS: For assistance on technical questions concerning the proposed rules, contact Beverly Barker, Consumer Section Supervisor at [phone]. Anyone may submit written comments regarding these proposed rules. All written comments concerning the proposed rules must be delivered to the Commission Secretary at the address identified below or must be postmarked on or before October 25, 2000. Persons desiring to comment are encouraged to submit written comments at their earliest convenience rather than waiting until the comment deadline.

DATED at Boise, Idaho this day of August 2000.

Myrna J. Walters
Commission Secretary
Idaho Public Utilities Commission Street address for express delivery:
PO Box 83720 472 W Washington
Boise, ID 83720-0074 Boise, Idaho
Telephone: [phone]
Facsimile: [phone]
TDD: [phone]

IDAPA 31
TITLE 21
Chapter 01
31.21.01 - CUSTOMER RELATIONS RULES FOR GAS, ELECTRIC AND WATER PUBLIC UTILITIES REGULATED BY THE IDAHO PUBLIC UTILITIES COMMISSION
(THE UTILITY CUSTOMER RELATIONS RULES)

103. (RESERVED). GUARANTEE IN LIEU OF DEPOSIT (RULE 103).
01. Guarantor. In lieu of a deposit required by these rules, a utility shall accept a written guarantee of payment from another customer of the same utility. An acceptable guarantor must have good credit and be receiving the same class of service as the customer whose account is guaranteed. (7-1-93)

02. Guarantee Form. The guarantee form used by each utility must be filed with and approved by this Commission. The guarantee form must state: (7-1-93)

a. The terms of the guarantee, the maximum amount guaranteed, and that the utility shall not hold the guarantor liable for sums in excess of that amount, (7-1-93)

b. That the maximum amount guaranteed shall not exceed the amount of the deposit that would have been charged the applicant, and (7-1-93)

c. That the guarantor shall be released from the guarantor's obligation when the customer whose account is guaranteed has established good credit. (7-1-93)

03. Period of Guarantee. The minimum guarantee period is thirty (30) days. The guarantee shall remain in full force and effect until five (5) days after the utility's receipt of the guarantor's notice of cancellation of the guarantee agreement. (7-1-93)

104. WRITTEN EXPLANATION FOR DENIAL OF SERVICE OR REQUIREMENT OF DEPOSIT (RULE 104).
If the utility denies service or requires a cash deposit or written guarantee as a condition of providing service, then it must immediately provide a written explanation to the applicant or customer stating the precise reasons why it denies service or requires a deposit. The applicant or customer must be given an opportunity to rebut those reasons. (7-1-93)( )

(BREAK IN CONTINUITY OF SECTIONS)

107. RETURN OF DEPOSIT (RULE 107).
01. Former Customers. Upon termination of service, the deposit, with accrued interest, shall be credited to the final bill. The balance of the deposit remaining, if any, shall be returned promptly to the customer. (7-1-93)

02. Existing Customers. Unless the customer has requested that the deposit be credited to future bills, tThe deposit, with accrued interest, will must either be credited to the customer’s current bill or be refunded promptly by the utility when: (7-1-93)( )

a. The residential customer establishes and maintains good credit; or (7-1-93)

b. The small commercial customer maintains good credit and is not delinquent more than once in the previous twelve (12) months. (7-1-93)

03. Retention During Dispute. The utility may retain the deposit pending the resolution of a dispute over termination of service. If the deposit is later returned to the customer, the utility shall pay interest at the annual rates established in Rule 106 for the entire period over which the deposit was held. (7-1-93)

04. Early Return of Deposit. A utility may refund a deposit plus accrued interest in whole or in part at any time before the time prescribed in this rule. (7-1-93)

(BREAK IN CONTINUITY OF SECTIONS)

201. ISSUANCE OF BILLS--CONTENTS OF BILLS (RULE 201).
Bills shall be issued on a regular basis monthly. Upon application by a utility, the Commission may allow billing on a less frequent basis. Bills must contain the following information:
(7-1-93)( )

01. The Billing Date. (7-1-93)

02. The Time Period Covered by the Bill. (7-1-93)

03. Metered Service Billing. If metered service is the basis for billing, the beginning and ending meter readings, where the bill is based on actual readings, or a clearly marked statement that the bill is estimated, if the meter was not actually read, and the quantity of service provided, when applicable. (7-1-93)

04. Billing Comparisons. Comparisons of current and previous consumptions, when required by IDAPA 31.22.01.103. (7-1-93)

05. The Due Date of the Bill. (7-1-93)
06. Itemization of All Charges. An itemization of all charges, both recurring and nonrecurring. (7-1-93)
07. Any Amount Transferred from Another Account. (7-1-93)

08. Any Amounts Past Due. (7-1-93)

09. Payments or Credits. Any payments or credits applied to the customer's account since the last bill. (7-1-93)

10. The Total Amount Due. (7-1-93)

11. Billing Records Office Location Address and Telephone Number. The mailing address and toll-free telephone number(s) of the utility's nearest office maintaining billing records for the available to customers in the service territory for answering billing inquiries.
(7-1-93)( )

(BREAK IN CONTINUITY OF SECTIONS)

207. BILLING PROHIBITED (Rule 207).
No utility shall bill for utility service or other service(s) or merchandise not ordered or otherwise authorized by the customer of record. Any charges for these services that appear on a customer’s bill shall be removed from the customer’s bill no later than two (2) billing cycles following notice by the customer to the utility. A utility that unknowingly submits a bill containing charges for utility service or other service(s) or merchandise not ordered or otherwise authorized by the customer of record shall not be considered in violation of this rule if the disputed amounts are removed from the customer’s bill. ( )

2078. -- 299. (RESERVED).

300. FURTHER DEFINITIONS (Rule 300).
As used in Rules 301 through 313: (7-1-93)

01. Applicant. "Applicant" is restricted from its general definition to refer only to applicants for residential or small commercial service, unless further restricted by the rule.
(7-1-93)

02. Customer. "Customer" is restricted from its general definition to refer only to residential or small commercial customers, unless further restricted by the rule. (7-1-93)

03. Non-Utility Service. "Non-utility service" means: (7-1-93)

a. Service for which the Commission does not regulate rates, charges, or availability of service; (7-1-93)

b. Service for which no rate or charge is contained in the utility's tariffs; or (7-1-93)

c. Merchandise or equipment or charges for merchandise or equipment not required as a condition of receiving utility service. (7-1-93)

04. Residential and Small Commercial Classes. The Commission shall maintain on file a list of which customer classes of a given utility are residential and which are small commercial.
(7-1-93)

(BREAK IN CONTINUITY OF SECTIONS)

302. GROUNDS FOR DENIAL OR TERMINATION OF SERVICE WITH PRIOR NOTICE (RULE 302).
A utility may deny or terminate service to a customer or applicant without the customer's or applicant's permission, but only after adequate notice has been given in accordance with these rules, for one (1) or more of the following reasons: (7-1-93)

01. Failure to Pay. The customer or applicant did not pay undisputed delinquent bills or paid a delinquent bill with any check not honored by the bank. (7-1-93)

02. Failure to Make Security Deposit. The customer or applicant failed to make a security deposit, or make an installment payment on a deposit, or obtain a guarantee, where it is required.
(7-1-93)( )

03. FailedFailure to Abide by Terms of Payment Arrangement. The customer or applicant failed to abide by the terms of a payment arrangement. (7-1-93)( )

04. Identity Misrepresentation. The customer or applicant misrepresented the customer's or applicant's identity for the purpose of obtaining utility service. (7-1-93)

05. Denial of Access to Meter. The customer or applicant denied or willfully prevented the utility's access to the meter. (7-1-93)

06. Willful Waste of Service. The utility determines as prescribed by relevant State or other applicable standards that the customer is willfully wasting service through improper equipment or otherwise. (7-1-93)

07. Misuse of Service. The customer or applicant is using service for which the customer or applicant did not apply. (7-1-93)

08. Previous Account Balance Owing. Nothing in this rule requires the utility to connect service for a customer who owes money on an existing account or from a previous account when that customer moves to a new residence that does not have service. (7-1-93)

(BREAK IN CONTINUITY OF SECTIONS)

304. REQUIREMENTS FOR NOTICE BEFORE TERMINATION OF SERVICE (RULE 304).
01. Seven (7) Day Notice. If the utility intends to terminate service under Rule 302, the utility shall send to the customer written notice of termination mailed at least seven (7) calendar days before the proposed date of termination. This written notice shall must contain the information required by Rule 305. This seven-day (7) notice does not apply under the conditions listed in Subsection 304.04. (7-1-93)( )

02. Twenty-Four (24) Hour Notice. At least twenty-four (24) hours before actual termination, the utility shall must diligently attempt to contact the customer affected, either in person or by telephone, to advise the customer of the proposed action and steps to take to avoid or delay termination. This oral notice shall must contain the same information required by Rule 305.
(7-1-93)( )

03. Additional Notice. If service is not terminated within seven (7) twenty-one (21) calendar days after the proposed termination date as specified in a written notice and the matter is not the subject of a pending complaint filed with this Commission, or other arrangements have not been made with the customer, the utility shall must again make a diligent attempt to contact the customer, either in person or by telephone, to advise the customer of the proposed action. Actual termination is prohibited until a minimum of twenty-four (24) hours after provide notice under Rules 304.01 and 304.02 if it still intends to terminate service. or after the diligent attempt to notify.
(7-1-93)( )

04. Failure to Pay--Payment with Dishonored Check Not Honored by Bank. The requirement of seven (7) days' written No additional notice shall not apply when of termination is required if, upon receipt of a termination notice: (7-1-93)( )

a. The customer does not makes an initial payment according to a payment arrangement and subsequently fails to keep that arrangement; or makes the initial (7-1-93)( )

b. The customer tenders payment with a dishonored check not honored by the bank; or (7-1-93)( )

bc. The customer, at a utility's collection visit to terminate service, tenders payment with a dishonored check. not honored by the bank. In either case, the utility shall make a diligent attempt to contact the customer in person or by telephone to apprise the customer of the proposed action, and actual termination is prohibited until a minimum of twenty-four (24) hours after notice or after the diligent attempt. Further twenty-four (24) hour notices need not be given if the customer has been provided with a twenty-four (24) hour notice in the past seven (7) days.
(7-1-93)( )

305. CONTENTS OF NOTICE OF INTENT TO TERMINATE SERVICE (RULE 305).
The written or oral notice of intent to terminate service required by Rule 304 shall state: (7-1-93)

01. Reasons for Termination. The reason(s), citing these rules, why service will be terminated and the proposed date of termination; (7-1-93)

02. Actions to Avoid Termination. Actions the customer may take to avoid termination of service; (7-1-93)

03. Medical Certificate. That a certificate notifying the utility of a serious illness or medical emergency in the household may delay termination as prescribed by Rule 308; (7-1-93)

04. Filing Complaints. That an informal or formal complaint concerning termination may be filed with the utility or the Commission, and that service will not be terminated on the ground relating to the dispute between the customer and the utility before resolution of the complaint (the Commission's address and telephone number must be given to the customer); and (7-1-93)

05. Payment Arrangements. That the utility is willing to make payment arrangements (this statement must be in bold print on written notices). (7-1-93)

06. Partial Payments. That for purposes of termination, partial payments will be applied toward utility service charges first, unless the customer requests otherwise, and that charges for non-utility services cannot be used as a basis for termination. ( )

306. TERMINATION OF RESIDENTIAL GAS AND ELECTRIC SERVICE--WINTER PAYMENT PLAN--REPORTING TO COMMISSION (RULE 306).
01. Restrictions on Termination of Service to Households with Children, Elderly, or Infirm. Except as provided in Rule 303, no gas or electric utility may terminate service or threaten to terminate service during the months of December through February to any residential customer who declares that he or she is unable to pay in full for utility service and whose household includes children, elderly or infirm persons. (7-1-93)

02. Definitions for This Rule. For purposes of this rule: (7-1-93)

a. "Children" are defined as persons eighteen (18) years of age or younger, but customers who are emancipated minors are not children under this rule. (7-1-93)

b. "Elderly" are defined as persons sixty two (62) years of age or older. (7-1-93)

c. "Infirm" are defined as persons whose physical health or safety would be seriously impaired by termination of utility service. (7-1-93)

03. Opportunity to Participate in Winter Payment Plan. Any residential customer who declares that he or she is unable to pay in full for utility service and whose household includes children, elderly or infirm persons must be offered the opportunity to establish a Winter Payment Plan. However, no customer may be required to establish such a plan. Except as provided in Rule 303, no gas or electric utility may terminate service during the months of November through March to any customer who establishes a Winter Payment Plan before November 1. A customer may establish a Winter Payment Plan after November 1, but the extended protection from termination of service offered under such a plan will not begin until the date the plan is established. Failure of a participating customer to make payments as required will result in cancellation of the plan and elimination of the extended protection from termination of service offered under the plan. The customer may use any source of funds to satisfy the payment requirements of Winter Payment Plan. (7-1-93)

04. Amount of Payments Under Winter Payment Plan. Monthly payments under a Winter Payment Plan are equal to one-half (1/2) of the Level Pay Plan amount for that customer. The Level Payment Plan amount must be calculated according to Rule 313.06. (7-1-93)

05. Payment Arrangements Following Winter Payment Plan. If a customer who received the protection of this rule has an outstanding balance owed to the utility, the customer must either pay this balance or negotiate a new payment arrangement. (7-1-93)

a. On or after March 1, if the customer has not established a Winter Payment Plan; or
(7-1-93)

b. On or after April 1, if the customer has established a Winter Payment plan. Failure of a customer to pay or make payment arrangements on or after these dates may result in termination of service. (7-1-93)

06. Successive Participation in Winter Payment Plan. A customer who participates in a Winter Payment Plan one (1) year must be allowed to participate in succeeding years if the customer has honored the payment arrangements and the balance owing as of November 1 does not exceed seventy-five dollars ($75) or the customer's utility bill for the previous thirty (30) days, whichever is greater. However, the utility is not required to connect or reconnect the service of a customer or applicant who does not currently have utility service and owes an unpaid, undisputed bill to the utility. (7-1-93)

07. Reporting to the Commission. Written information on accounts actually terminated during the months of November through March must be furnished to the Commission on a regular basis. These reports shall include the following information: (7-1-93)
a. The customer's name, address, and class of service; (7-1-93)

b. The reason(s) for termination of service; (7-1-93)

c. The amount owing, if any; and (7-1-93)

d. Whether there are children, elderly or infirm persons in the household. The Commission may order reconnection of service when reconnection is determined to be appropriate. (7-1-93)

087. Unoccupied Residences, Etc. Nothing in this rule prevents a gas or electric utility from terminating service to unoccupied residences or residences where the occupants have failed or refused to apply for utility service. Nothing in this rule requires the utility to connect service for a customer who owes money on an existing account when that customer moves to a new residence that does not currently have service. (7-1-93)( )

(BREAK IN CONTINUITY OF SECTIONS)

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: (7-1-93)

01. Unpaid Bill Less than Fifty Dollars ($50). The customer's unpaid bill cited as grounds for termination totals less than fifty dollars ($50) or two (2) months' charges for service, whichever is less. (7-1-93)( )

02. Unpaid Bill Not Customer's. 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. (7-1-93)

03. Failure to Pay on Written Guarantee. The reason cited for termination is failure to pay on a written guarantee as provided for in Rule 103. (7-1-93)

043. Non-utility Service or Good. An unpaid bill results from the purchase of non-utility goods or services. (7-1-93)( )

(BREAK IN CONTINUITY OF SECTIONS)

313. PAYMENT ARRANGEMENTS (RULE 313).
01. Arrangements Allowed. When a customer cannot pay a bill in full, the utility shall continue to serve the customer if the customer and the utility agree on a reasonable portion of the outstanding bill to be paid immediately, and the manner in which the balance of the outstanding bill shall be paid. For customers who are unable to come to the utility's local office to make payment arrangements, a gas or electric utility must, upon request by the customer, make payment arrangements over the telephone, by mail or at the customer's home. (7-1-93)

02. Reasonableness. In deciding on the reasonableness of a particular agreement, the utility will take into account the customer's ability to pay, the size of the unpaid balance, the customer's payment history, and the amount of time and reasons why the debt is outstanding.
(7-1-93)

03. Application of Payment. Payments are to be first applied to the oldest undisputed balance owed on by the customer's bill, except in the case of a disputed bill. If the customer disputes a bill, the customer's payments are to be applied to the oldest undisputed amount for utility services and associated installation charges, taxes, franchise fees and surcharges, unless the customer designates otherwise. (7-1-93)( )

04. Second Arrangement. If a customer fails to make the payment agreed upon by the date that it is due, the utility may, but is not obligated to, enter into a second such agreement.
(7-1-93)

05. When Arrangement Not Binding. No payment arrangement shall be binding upon a customer if it requires the customer to forego any right provided for in these rules. (7-1-93)

06. Level Pay Plans Acceptable Payment Arrangement. Payment arrangements may be in the form of a Level Pay Plan that will equalize monthly payments of all arrears, if any, and anticipated future bill amounts over a period of not less than one (1) year. No customer agreeing to a reasonable payment arrangement is required to choose this plan. (7-1-93)

07. First Payment Due. The first payment under the arrangement will be due one (1) business day after the arrangement, unless the utility grants an extension. If the initial payment is not made, or if any check not honored by the bank is offered as initial payment, the utility may terminate service upon twenty-four (24) hour notice to the customer unless the customer has been provided with a twenty-four (24) hour notice in the past seven (7) days, in which case a twenty-four (24) hour notice is not required. (7-1-93)

087. Third-Party Contact. If a utility has been unable to contact a customer concerning termination, but has contacted the customer's third-party designated under Rule 307 and has failed to receive a response from the customer within seven (7) days after the third-party was contacted, the utility may treat the customer as one who has been contacted and has declined to enter into a reasonable payment arrangement. (7-1-93)( )

(BREAK IN CONTINUITY OF SECTIONS)

404. RESPONSES TO INFORMAL COMPLAINTS (Rule 404).
Within ten (10) business days of receiving notification from the Commission that an informal complaint involving the company has been filed with the Commission, utilities must either respond orally or in writing to the Commission. A utility will be granted an extension of time to prepare its response if it represents that it is making a good faith effort to resolve the matter in dispute. A full and complete response should be submitted to the Commission no later than thirty (30) days after receipt of notification from the Commission. ( )

4045. -- 499. (RESERVED).

NOTICE OF PROPOSED RULEMAKING -1-

APPENDIX A

APPENDIX B

Office of the Secretary
Service Date
August 28, 2000