Code of Massachusetts Regulations
220 CMR - DEPARTMENT OF PUBLIC UTILITIES
Title 220 CMR 14.00 - The Unbundling of Services Related to the Provision of Natural Gas
Section 14.03 - Local Distribution Company Requirements

Universal Citation: 220 MA Code of Regs 220.14

Current through Register 1531, September 27, 2024

(1) Purpose and Scope.

(a) Purpose. 220 CMR 14.03 establishes the rules of procedure by which Local Distribution Companies shall:
1. Provide Distribution Service to Distribution Customers in their Service Territories;

2. Unless otherwise directed by the Department, provide Default Service to Retail Customers in their Service Territories who are not receiving Supplier Service from a Supplier;

3. Bill Retail Customers in their Service Territories; and

4. Terminate Gas Service to Retail Customers for non-payment of bills.

(b) Scope. 220 CMR 14.00 applies to all Local Distribution Companies subject to the jurisdiction of the Department.

(2) Distribution Service.

(a) Each Local Distribution Company shall have the exclusive obligation to provide Distribution Service to all Retail Customers within its Service Territory. No other entity may provide Distribution Service within such Service Territory without the written consent of the Local Distribution Company. Such consent shall be filed with the Department and the clerk of the municipality so affected.

(b) Each Local Distribution Company shall file, for Department approval, a Distribution Service tariff for each rate class.

(c) Each Local Distribution Company shall file, for Department approval, terms and conditions governing the manner in which Distribution Service is provided to its Distribution Customers.

(2A) Low-income Discount Rates.

(a) Each Local Distribution Company shall have on file a low-income tariff that provides a reduction in the distribution charges to which such Customers would otherwise be subject.

(b) Each Local Distribution Company shall establish eligibility for its low-income rate tariff based upon verification of a low-income Customer's receipt of any means-tested public benefit program or verification of eligibility for the low-income home energy assistance program or its successor program, or other criteria approved by the Department. Eligibility for the low-income discount rate shall be indexed to changes in the low-income home energy assistance program income-criterion, and households satisfying that criterion shall qualify for the rate discount. A Local Distribution Company may file a petition with the Department for an exemption to the eligibility criteria in 220 CMR 14.03(2A)(b) for good cause shown.

(c) Each Local Distribution Company shall periodically notify all Customers of the availability of and method of obtaining service on the low-income rate tariff.

(d) Each Local Distribution Company shall allocate to other rate classes, as part of a general rate case, the revenue deficiency resulting from the low-income rate tariff using an allocation method approved by the Department for the Local Distribution Company.

(3) Farm Discount.

(a) Each Local Distribution Company shall provide Retail Customers who meet the eligibility requirements for being engaged in the business of agriculture or farming, as defined in M.G.L. c. 128, § 1A, a 10% reduction in the rates to which such Retail Customers would otherwise be subject. Each Local Distribution Company shall allocate to other rate classes, as part of a general rate case, the revenue deficiency resulting from the farm discount using an allocation method approved by the Department for the Local Distribution Company.

(b) Eligibility Verification. Eligibility for the farm discount shall be verified according to criteria established by the Department.

(4) Default Service .

(a) Unless otherwise directed by the Department, each Local Distribution Company shall have the obligation to provide Default Service to Retail Customers within its Service Territory who are not receiving Supplier Service, consistent with the provisions set forth in 220 CMR 14.04.

(b) Availability. Default Service shall be available to any Retail Customer who is not receiving Supplier Service in accordance with the Local Distribution Company's terms and conditions.

(c) Rates. The rate(s) for Default Service provided by the Local Distribution Company shall be as established pursuant to the Local Distribution Company's Default Service and Cost of Gas Adjustment Clause tariffs on file with the Department.

(d) Terms and Conditions. Each Local Distribution Company shall file, for Department approval, a tariff for the provision of Default Service.

(e) Fee. There shall be no fee for initiating or terminating Default Service when the initiation or termination is made concurrent with the Local Distribution Company's scheduled meter read, or is involuntary on the part of the Retail Customer.

(5) Terms and Conditions for Suppliers. Each Local Distribution Company shall file, for Department approval, terms and conditions that will govern the relationship between the Local Distribution Company and Suppliers providing Supplier Service to Retail Customers in the Local Distribution Company's Service Territory.

(6) Billing and Payment.

(a) Each Local Distribution Company shall bill its Residential Customers in accordance with 220 CMR 25.00.

(b) Each Local Distribution Company shall issue a single Bill, reflecting unbundled rates, to each Retail Customer in its Service Territory receiving Default Service.

(c) Each Local Distribution Company shall offer two billing options to a Retail Customer receiving Supplier Service:
1. Pass through billing, under which the Retail Customer would receive one Bill for Distribution Service, from the Local Distribution Company and a second Bill from the Supplier for Supplier Service and other services provided by the Supplier; and

2. Complete billing, under which the Retail Customer would receive a single Bill from the Local Distribution Company for Distribution Service and Supplier Service provided by the Supplier.

(d) Each Local Distribution Company shall inform a Retail Customer when Supplier Service for the Retail Customer has been initiated by a Supplier, along with information on how the Retail Customer may file a complaint regarding an unauthorized initiation of Supplier Service. This information shall be included on the first Local Distribution Company Bill rendered to the Retail Customer after such initiation.

(e) Each Local Distribution Company may, as appropriate, require a security deposit from, and impose late payment charges on, Non-Residential Customers in accordance with 220 CMR 26.00.

(f) Each Distribution Company shall bill condominium common areas and facilities in accordance with 220 CMR 28.00.

(7) Termination Protections.

(a) All Residential Customers shall be protected from termination of Gas Service pursuant to 220 CMR 25.00.

(b) Each Local Distribution Company shall remain responsible for determining eligibility for termination protections pursuant to 220 CMR 25.00 and for administering such protections for Retail Customers within its Service Territory.

(c) Each Local Distribution Company shall be prohibited from disconnecting or discontinuing Gas Service to a Retail Customer for a disputed amount if that Retail Customer has filed a complaint that is pending with the Department, in accordance with 220 CMR 25.02 and 220 CMR 14.06.

(8) Disclosure of Customer Usage Information.

(a) Each Local Distribution Company shall be required to provide a Retail Customer's historic usage information to Suppliers and Retail Agents that have received the required Retail Customer authorization, as established in 220 CMR 14.04(4)(a). The type of usage information shall be as provided in 220 CMR 14.03(8)(a)1. and 2.
1. Demand Customers . For Retail Customers that have been billed at least in part on a demand basis during the 36-month period prior to the release of information, the historic usage information shall include, for the most recent 12 months, the volumetric consumption for each month, and the billing demand level for each month. The Local Distribution Company shall indicate if any of the volumetric and demand measurements were not based on actual recorded usage, and provide a description of the method used to determine the estimated measurements.

2. Volumetric-only Customers. For Retail Customers that have been billed on a volumetric-only basis during the 36-month period prior to the release of information, the historic usage information shall include the monthly volumetric consumption for the most recent 12 months. The Local Distribution Company shall indicate if any of the volumetric measurements were not based on actual recorded usage and provide a description of the method used to determine the estimated measurements.

(b) Each Local Distribution Company shall be required to provide a Retail Customer's historic usage information to the Retail Customer, upon the Retail Customer's request. Local Distribution Companies shall be required to exercise best efforts to furnish the data requested by the Retail Customer on a timely basis. The Local Distribution Company shall indicate if any of the usage information was not based on actual recorded usage and provide a description of the method used to determine the estimated usage.

(9) Dispute Resolution. Disputes between a Retail Customer and a Local Distribution Company shall be resolved in accordance with 220 CMR 25.00 and 220 CMR 14.06.

(10) Conducting Business with Unauthorized Entities. A Local Distribution Company may provide services associated with the provision of Supplier Service only to entities that are certified as a Supplier by the Department pursuant to 220 CMR 14.04(2).

(11) Dissemination of Information. Each Local Distribution Company shall produce information, in the form of a mailing, or other method approved by the Department, to inform consumers about available rebates, discounts, credits, and other cost-saving mechanisms that assist consumers in lowering utility bills. Each Local Distribution Company will disseminate this information no less than semi-annually, and consistent with a plan filed with the Department.

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