Section 407-815-9 - PAYMENT ARRANGEMENTSA.Payment arrangement requiredA Utility must 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 ArrangementA Utility must mail or deliver to the Customer a written confirmation of a Payment Arrangement that requires two or more payments within three business days after a Payment Arrangement is established. The written confirmation must:
1. inform the Customer of the terms of the Payment Arrangement;2. include CASD's address and toll-free telephone number; and3. inform the Customer of the Utility's right to issue a 3-day disconnection notice for failure to comply with a Payment Arrangement. This written disclosure may be delivered electronically if the Customer has consented to electronic communication or billing.
C.Failure to confirm Payment Arrangement in writingIf a Utility does not mail or deliver a written confirmation of a Payment Arrangement to the Customer within three 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).
D.Basic Service Payment Arrangement to be separateAny agreement permitting installment payments on an Account Balance for non-basic service must be separate from a Payment Arrangement for Basic Service.
E.Residential CustomersUtilities 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, including, but not limited to, Regular Payment Arrangements, Special Payment Arrangements during the Winter Disconnection Period, and Levelized Payment Arrangements. A Levelized Payment Arrangement must periodically be adjusted to account for changes in the estimated usage. In these situations, an arrangement cannot be adjusted more than four times a year. 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 CASD for assistance.
1.Criteria for determining a reasonable Payment ArrangementIn 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; ande. 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. If a Utility and a Customer cannot agree on the terms of a Payment Arrangement, the Utility must refer the Customer to CASD and CASD will establish a reasonable Payment Arrangement.
2.Notification of LIAP, AMP and other forms of financial assistanceWhen a Customer informs a Utility that the Customer cannot pay a bill and the Utility determines the Customer may be disconnected, the Utility must provide the following.
a.Source of Financial Assistance. The Utility must provide the Customer with information regarding the Utility's LIAP (if applicable), the Utility's AMP (if applicable) and the availability of information about financial assistance by calling 211.b.Provision of information. Upon request by the Customer, the Utility must provide to the financial assistance entity or entities selected by the Customer the Customer's total amount of arrearage and the average monthly bill of the Customer. Alternatively, the utility may provide this information directly to the Customer who can then use the information as needed.3.Second Payment ArrangementThe Utility may, but is not required to, offer a second Payment Arrangement to a Customer who is in default of a first Payment Arrangement. If the first payment arrangement is a Special Payment Arrangement, the Utility must offer at least one additional Payment Arrangement during the non-winter disconnection period.
4.Notification of Conservation Measures to Low Income CustomersThe Utility must offer any Customer eligible to participate in the Utility's LIAP or AMP any existing no-cost energy conservation measures, including, but not limited to, any energy audit, offered by the Utility, as a condition of the second payment arrangement. LIAP and AMP Customers must accept the measures to the extent they have the authority to do so.
5.Winter Disconnection Perioda.Special Payment Arrangements. Between November 1 and March 15, utilities must offer Customers who are not currently on or failed to complete a Special Payment Arrangement established the prior Winter Disconnection Period the opportunity to enter into a Special Payment Arrangement, provided that the first payment will be due prior to April 15, when such an arrangement is the best option for keeping a Customer's bills affordable during the Winter Disconnection Period and non-winter Disconnection period, that is, summer period, and ensuring that the Customer is not disconnected. Unless a material deterioration in financial circumstances is demonstrated by the Customer, a Customer who has failed to complete a Regular or Special Payment Arrangement on Bills accrued during the previous 12-month period will not be eligible for a Special Payment Arrangement under this subsection. This Payment Arrangement is a combination of level payments during the winter months prior to the issuance of the March bill which are not less than the customer's average summer bill, and level payments beginning with the bill issued in March that reflect one-seventh of the total of the following: the arrearage at that time; the March bill; and estimated bills through September. In any case, this Payment Arrangement must be designed to pay any arrearage incurred prior to entering the Special Payment Arrangement or as a result of the level monthly payments required by the Special Payment Arrangement by the following November 1.b.Utility attempt to contact. Utilities must attempt to contact each Customer who was on a Special Payment Arrangement the prior Winter Disconnection Period, who did not meet the requirements of the Special Payment Arrangement, who has not been placed on an alternative Payment Arrangement, and who has an amount overdue of at least $100.00 as of November 1 and establish a Payment Arrangement that best addresses the circumstances of the Customer's situation. The contact attempt must be made after November 1 and before November 15 and may be by letter, telephone call, or other means that is likely to achieve contact with the Customer.c.Information required. The Utility must provide the Customers with whom they make contact information regarding financial assistance pursuant to Section 9(E)(2).d.Written Statement Concerning Installment Payments. After March 1 and before May 31, the Utility must provide each Customer who made a Special Payment Arrangement with a written statement of the total amount due, and the amounts and payment schedule required in order to pay the total amount due by November 1.F.Non-residential CustomersUtilities 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; and3. 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 CASD and CASD will establish a reasonable Payment Arrangement.
65-407 C.M.R. ch. 815, § 9