65- 407 C.M.R. ch. 660, § 9

Current through 2024-51, December 18, 2024

Section 407-660-9 - PAYMENT ARRANGEMENTS

A.Payment Arrangement Required

A utility shall continue to serve a customer who does not pay an account balance in full if the customer agrees to enter a payment arrangement for the account balance and agrees to pay each future bill for service on or before the due date of the bill until the payment arrangement is completed. A payment arrangement may involve a single or multiple payments.

B.Written Confirmation of Payment Arrangement

A utility shall mail or deliver to the customer a written confirmation of a payment arrangement that requires two or more payments within 3 business days after a payment arrangement is established. The written confirmation shall:

1. inform the customer of the terms of the payment arrangement;

2. include the address and toll free telephone number of the CAD; and

3. inform the customer of the utility's right to issue a 3-day disconnection notice for failure to comply with a payment arrangement.

C.Failure to Confirm Payment Arrangement in Writing

If a utility does not mail or deliver a written confirmation of a payment arrangement to the customer within 3 business days after a payment arrangement is agreed to, the utility cannot disconnect the customer for failure to comply with the payment arrangement. A utility may either attempt personal contact to negotiate a new payment arrangement or issue a 14-day disconnection notice for residential customers or a 7-day notice for non-residential customers according to Section 10(D) of this Rule.

D.Basic Service Payment Arrangement to be Separate

Any agreement permitting installment payments on an account balance for non-basic service must be separate from a payment arrangement for basic service.

E.Residential Customers

Utilities must establish payment arrangements that take into consideration the individual customer's unique circumstances and that are most likely to result in customers becoming current with their bills and retaining their utility service. If a customer and the utility cannot agree on the terms of a payment arrangement, including a customer's claim that the customer cannot afford to pay any amount towards the arrearage, the utility must refer the customer to the CAD for assistance.

1.Criteria for Determining a Reasonable Payment Arrangement

In determining if a particular arrangement is reasonable, the utility must take into account:

a. the customer's ability to pay;

b. the size of the overdue amount;

c. the customer's payment history;

d. the amount of time and reason why the overdue amount is outstanding; and e. any special circumstances creating extreme hardships within the household.

The utility must make every reasonable attempt to negotiate a payment arrangement that is likely to prevent disconnection and reduce the amount overdue to zero.

2.Notification of Forms of Financial Assistance

When a customer informs a utility that the customer cannot pay a bill and the customer is in imminent threat of disconnection, the utility must provide the customer with information regarding other sources of financial assistance including, but not limited to, 211, the Department of Health and Human Services, the Community Action Agencies, and local Town or City government.

3.Second Payment Arrangement

The utility may, but is not required to, offer a second payment arrangement to a customer who is in default of a first payment arrangement.

F.Non-Residential Customers

Utilities must offer non-residential customers payment arrangements that take into consideration the customer's unique circumstances and that are most likely to result in the customer becoming current with their bills and retaining their utility service. In determining if a particular arrangement is reasonable, the utility must take into account:

1. the size of the overdue amount;

2. the customer's payment history; and

3. the amount of time and reason why the overdue amount is outstanding.

The utility must make every reasonable attempt to negotiate a payment arrangement that is likely to prevent disconnection and reduce the amount overdue to zero. If a utility and a customer cannot agree on the terms of a payment arrangement, the utility must refer the customer to the CAD and the CAD will establish a reasonable payment arrangement.

65- 407 C.M.R. ch. 660, § 9