N.Y. Comp. Codes R. & Regs. tit. 16 § 11.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 11.4 - Termination or disconnection of residential service, and suspension of distribution service pursuant to public service law, section 32(5)

(a) Termination or disconnection of residential service. This subdivision sets forth termination and disconnection procedures applicable where a utility provides only distribution service and seeks to terminate the distribution service, the utility provides both distribution service and commodity supply and seeks to terminate them both or an ESCO seeks to terminate commodity supply. Where an ESCO seeks suspension of a residential customer's distribution service due to the customer's non-payment of the commodity portion of a consolidated bill, subdivision (b) of this section also applies.

(1) Conditions for termination or disconnection. A utility may terminate or disconnect residential service as provided for in these rules if the customer:

(i) fails to pay charges for services rendered at any time during the preceding 12 months; provided, however, that termination or disconnection of service for bills due for service rendered during periods in excess of the 12-month period is permitted in cases involving billing disputes during the 12-month period, estimated bills, the culpable conduct of the customer or excusable utility delays; and provided further, that the utility shall commence any such billing not more than four months after the resolution of the billing dispute, the adjustment to estimated bills, or the cessation of excusable utility delays or delays caused by the customer's culpable conduct; or

(ii) fails to pay amounts due under a deferred payment agreement;

(iii) fails to pay or agree in writing to pay equipment and installation charges relating to the initiation of service; or

(iv) fails to pay a lawfully required deposit; and

(v) is sent a final notice of termination or disconnection no less than 15 days before the termination or disconnection date shown on the notice.

(2) Final notice. A final notice of termination or disconnection shall clearly state or include:

(i) the earliest date on which termination or disconnection may occur;

(ii) the reasons for termination or disconnection, including the total amount required to be paid, and the manner in which termination or disconnection may be avoided;

(iii) the address and phone number of the office of the utility that the customer may contact in reference to his account;

(iv) the availability of utility procedures for handling complaints; and

(v) a summary, prepared or approved by the commission or its authorized designee, of the protections available under this Part, together with a notice that any customer eligible for such protections should contact the utility.

The final notice of termination or disconnection may include any additional information not inconsistent with this Part. The final notice of termination from on ESCO, however, shall inform the customer that suspension of the customer's distribution service can accompany the ESCO's commodity termination, even if the customer's account for distribution service is current. In addition, the notice shall have printed on its face, in a size type capable of attracting immediate attention, language conveying the following:

THIS IS A FINAL TERMINATION NOTICE. PLEASE REFER TO THIS NOTICE WHEN PAYING THIS BILL.

OR

THIS IS A FINAL DISCONNECTION NOTICE. PLEASE REFER TO THIS NOTICE WHEN PAYING THIS BILL.

(3) Notice of termination or disconnection--time.

(i) No utility shall terminate or disconnect service under this Part until at least 15 days after a final notice of termination or disconnection:

(a) has been served personally upon the residential customer; or

(b) has been mailed to the residential customer at the premises where service is rendered.

(ii) If an alternative address for mailing purposes has been previously provided in writing to a utility, no utility shall terminate or disconnect service under this Part until at least 15 calendar days after a final notice of termination or disconnection:

(a) has been mailed to the premises where service is rendered and to the residential customer at the alternative address; or

(b) has been mailed to the residential customer at the alternative address, and according to procedures filed by the utility with the Office of Consumer Services, either:

(1) has been served personally upon an adult resident of the premises where service is rendered;

(2) has been explained by telephone to an adult resident of the premises where service is rendered; or

(3) has been posted in a conspicuous place at the premises where service is rendered.

(iii) A utility may not issue or send a final notice of termination or disconnection unless at least 20 days have elapsed from the date payment was due. A utility may specify the date payment is due, provided that such date does not occur before personal service of the bill or three days after the mailing of the bill.

(4) Termination or disconnection of service--time. A utility complying with the conditions set forth in this section may terminate or disconnect service to a residential customer for nonpayment of bills only between the hours of 8 a.m. and 4 p.m., Monday through Thursday, provided such day or the following day is not:

(i) a public holiday, as defined in the General Construction Law; or

(ii) a day on which the main business office of the utility is closed for business. No utility shall terminate or disconnect service to any residential customer for nonpayment of bills during a two-week period encompassing Christmas and New Year's Day.

(5) No termination or disconnection without verification of delinquent account.

(i) No utility shall terminate or disconnect service for nonpayment of bills rendered, unless:

(a) it shall have verified that payment has not been received at any office of the utility or at any office of an authorized collection agent through the end of the notice period required by this Part; and

(b) it shall have verified on the day termination or disconnection occurs that payment has not been posted to the customer's account as of the opening of business on that day, or shall have complied with procedures established pursuant to subparagraph (6)(ii) of this subdivision.

(ii) In the case of a utility which serves a geographic area of this State involving more than six counties the commission may grant a waiver of the requirements of subparagraph (i) of this paragraph upon approval by the commission of an alternate procedure for verification of payments which accomplishes the basic purposes of such paragraph.

(6) Rapid posting of payments in response to notices of termination or disconnection. Every utility shall take reasonable steps to establish procedures to ensure that any payments made in response to final notices of termination or disconnection, when the customer brings the fact that such a notice has been issued to the attention of the utility or its collection agents:

(i) are posted to the customer's account on the day payment is received; or

(ii) are processed in some manner so that termination or disconnection will not occur.

(7) Payment to utility personnel. If a residential customer offers payment of the full amount that forms the basis for a scheduled termination or disconnection at the time of termination or disconnection, the utility's representative shall be obliged to accept such payment and shall not terminate or disconnect service. Whenever such payment is made, the utility representative shall provide the customer a receipt showing the date, account, name, address and amount received.

(8) No additional notice required when payment by check is subsequently dishonored. Receipt of a subsequently dishonored negotiable instrument in response to a notice of termination or disconnection or tendered to a utility representative shall not constitute payment of a residential customer's account and no utility shall be required to issue additional notice prior to termination or disconnection.

(9) Special notification of social services official.

(i) After a utility has sent a final notice of termination or disconnection to a residential customer who it knows is receiving public assistance, supplemental security income benefits or additional State payments pursuant to the Social Services Law, and for whom the utility has not received a guarantee of future payment from the local social services commissioner, it shall, not more than five days nor less than three days before the intended termination or disconnection, notify an appropriate official of the local social services district that payment for utility services has not been made. Such notification shall state that the customer has been sent a final notice of termination or disconnection, specify the amount of arrears, and state the earliest date on which termination or disconnection may occur.

(ii) In the case of a customer for whom the utility has received a guarantee of future payment from the local social services commissioner, the utility shall send a notice of nonpayment stating that payment has not been made and indicating the amount of the arrears to the recipient and to the local social services commissioner at the time the account would otherwise be subject to a final notice of termination or disconnection.

(iii) If the notification required by subparagraph (i) of this paragraph is made orally, the utility shall within one business day mail a written notification to such social services official.

(iv) Each utility shall, after consultation with an appropriate official in the social services district of each county served by the utility in whole or in part, compile and maintain a list of the social services officials who are to receive such notifications.

(v) A utility may notify an appropriate social services official that a customer it knows is receiving public assistance, supplemental security income benefits or additional State payments has failed to make timely payment for utility service, whenever it believes special circumstances affecting such customer should be brought to the immediate attention of the social services official. Such notification shall describe the special circumstances observed, specify the amount of arrears, and state the scheduled date of termination or disconnection, if one has been set.

(b) Suspension of distribution service pursuant to Public Service Law, section 32(5). This subdivision sets forth procedures applicable where an ESCO seeks suspension of a residential customer's distribution service due to the customer's non-payment of the commodity portion of a consolidated bill. Suspension pursuant to Public Service Law, section 32(5) of a residential customer's distribution service and any related services provided by the distribution utility shall be limited to only such distribution service that is used to distribute (or is related to) the commodity that is or was supplied by the requesting ESCO and for which the customer is in arrears.

(1) When requested by an ESCO, a distribution utility shall suspend its distribution service and any other related services the distribution utility may provide to a residential customer or multiple dwelling or two-family dwelling, if:

(i) the ESCO that was providing commodity supply to such customer has terminated the customer's commodity supply in compliance with all applicable provisions of subdivision (a) of this section;

(ii) the ESCO that was providing commodity supply to such customer notifies the distribution utility that commodity supply has been terminated in compliance with subdivision (a) of this section;

(iii) the ESCO's notification to the distribution utility demonstrates compliance with subdivision (a) of this section (such demonstration shall include, but not be limited to, providing a copy of the termination notice, proof that the termination notice was timely sent and was received by the customer or the customer's representative, and proof that termination took place at a permissible time, as specified in paragraph [a][4] of this section);

(iv) except in the case of a service to a multiple dwelling pursuant to section 33 of the Public Service Law, the ESCO demonstrates that such customer was billed using a consolidated bill;

(v) the distribution utility provided distribution service to the customer at the time the ESCO terminated its commodity supply;

(vi) the ESCO confirms that it is able to and will take all actions within its control necessary to restore commodity supply to such customer in accordance with the agreement for such service between the ESCO and the customer, if the customer makes full payment of the arrears that were the basis for the termination of commodity supply;

(vii) the ESCO has not assigned its right to obtain payment of the arrears to an entity that is not a utility for purposes of article 2 of the Public Service Law; and

(viii) less than one year has elapsed since the commodity supply was terminated.

(2) The final notice of suspension from or on behalf of an ESCO shall inform the customer that suspension of the customer's distribution service can accompany the ESCO's commodity termination, even if the customer's account for distribution service is current, and shall state the amounts which must be paid to:

(i) restore commodity supply; and

(ii) if different, to end suspension of distribution service.

(3) The distribution utility shall make its best efforts to institute such suspension of distribution service promptly, consistent with applicable commission policies and practices, and shall receive reasonable compensation from the ESCO, as determined by the commission, for any costs associated with such suspension of distribution service.

Comment:Distribution utilities are not required to duplicate all HEFPA procedures, such as suspension notices, negotiations of deferred payment agreements or other related tasks, when effectuating an ESCO-intitiated suspension of service; however, the distribution utility must (1) determine whether the customer or a resident at the customer's premises qualifies for special protections under Public Service Law, section 32(3) and section 11.5 of this Part and (2) collect from the customer, if possible, at the time of suspension, the amount necessary to avoid suspension. An ESCO requesting suspension more than 60 days from the date of its original suspension notice to the customer or when suspension does not occur within 60 days from the date of the suspension notice to the customer, must send another customer suspension notice containing updated payment information or it must inform the distribution utility that it no longer seeks to suspend service. Further, when the ESCO seeks suspension of distribution service, two notices are required:

(1) a notice to the customer stating that its service is subject to suspension after 15 days, the amount to be paid to avoid suspension, the amount to be paid to resume service after suspension and, if different, the amount necessary to end suspension; and

(2) a notice to the utility requesting suspension of the customer's distribution service and certifying that the provisions of Public Service Law, section 32(5) (a) have been satisfied.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 11.4