Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule protects the health and safety of
residential customers receiving heat-related utility service by placing
restrictions on discontinuing and refusing to provide heat-related utility
service from November 1 through March 31 due to delinquent accounts of those
customers. Reporting requirements regarding heat-related utility service are
found at 4
CSR 240-3.175 for electric utilities and at
4 CSR
240-3.250 for gas utilities.
(1) The following definitions shall apply in
this rule:
(A) Energy Crisis Intervention
Program (ECIP) means the federal ECIP administered by the Missouri Division of
Family Services under section
660.100,
RSMo;
(B) Heat-related utility
service means any gas or electric service that is necessary to the proper
function and operation of a customer's heating equipment;
(C) Low Income Home Energy Assistance Program
(LIHEAP) means the federal LIHEAP administered by the Missouri Family Support
Division under section
660.110,
RSMo;
(D) Registered elderly or
disabled customer means a customer's household where at least one (1) member of
the household has filed with the utility a form approved by the utility
attesting to the fact that s/he:
1. Is
sixty-five (65) years old or older;
2. Is disabled to the extent that s/he has
filed with their utility a medical form submitted by a medical physician
attesting that such customer's household must have natural gas or electric
utility service provided in the home to maintain life or health; or
3. Has a formal award letter issued from the
federal government of disability benefits. In order to retain his/her status as
a registered elderly or disabled customer, each such customer must renew
his/her registration with the utility annually. Such registration should take
place by October 1 of each year following his/her initial registration;
and
(E) Low income
registered elderly or disabled customer means a customer registered under the
provisions of subsection (1)(C) of this rule whose household income is less
than one hundred fifty percent (150%) of the federal poverty guidelines, and
who has a signed affidavit attesting to that fact on file with the utility. The
utility may periodically audit the incomes of low income registered elderly or
disabled customers. If, as a result of an audit, a registered low income
elderly or disabled customer is found to have materially misrepresented his/her
income at the time the affidavit was signed, that customer's service may be
discontinued per the provisions of this rule that apply to customers who are
not registered low income elderly or disabled customers and payment of all
amounts due, as well as, a deposit may be required before service is
reconnected.
(2) This
rule takes precedence over other rules on provision of heat-related utility
service from November 1 through March 31 annually.
(3) Notice Requirements. From November 1
through March 31, prior to discontinuance of service due to nonpayment, the
utility shall-
(A) Notify the customer, at
least ten (10) days prior to the date of the proposed discontinuance, by
first-class mail, and in the case of a registered elderly or handicapped
customer the additional party listed on the customer's registration form of the
utility's intent to discontinue service. The contact with the registered
individual shall include initially two (2) or more telephone call attempts with
the mailing of the notice;
(B) Make
further attempts to contact the customer within ninety-six (96) hours preceding
discontinuance of service either by a second written notice as in subsection
(3)(A), sent by first class mail; or a door hanger; or at least two (2)
telephone call attempts to the customer;
(C) Attempt to contact the customer at the
time of the discontinuance of service in the manner specified by
4 CSR
240-13.050(9);
(D) Make a personal contact on the premises
with a registered elderly or handicapped customer or some member of the family
above the age of fifteen (15) years, at the time of the discontinuance of
service; and
(E) Ensure that all of
the notices and contacts required in this section shall describe the terms for
provisions of service under this rule, including the method of calculating the
required payments, the availability of financial assistance from the Division
of Family Services and social service or charitable organizations that have
notified the utility that they provide that assistance and the identity of
those organizations.
(4)
The utility will not make oral representations of service termination for
nonpayment when termination would occur on a known "no-cut" day as governed by
the temperature moratorium.
(5)
Weather Provisions. Discontinuance of gas and electric service to all
residential users, including all residential tenants of apartment buildings,
for nonpayment of bills where gas or electricity is used as the source of space
heating or to control or operate the only space heating equipment at the
residence is prohibited-
(A) On any day when
the National Weather Service local forecast between 6:00 a.m. to 9:00 a.m., for
the following twenty-four (24) hours predicts that the temperature will drop
below thirty-two degrees Fahrenheit (32°F); or
(B) On any day when utility personnel will
not be available to reconnect utility service during the immediately succeeding
day(s) (Period of Unavailability) and the National Weather Service local
forecast between 6:00 a.m. to 9:00 a.m. predicts that the temperature during
the Period of Unavailability will drop below thirty-two degrees Fahrenheit
(32°F); or
(C) From November 1
through March 31, for any registered low income elderly or low income disabled
customer (as defined in this rule), provided that such customer has entered
into a cold weather rule payment plan, made the initial payment required by
section (10) of this rule and has made and continues to make payments during
the effective period of this rule that are at a minimum the lesser of fifty
percent (50%) of-
1. The actual bill for
usage in that billing period; or
2.
The levelized payment amount agreed to in the cold weather rule payment plan.
Such reductions in payment amounts may be recovered by adjusting the customer's
subsequent levelized payment amounts for the months following March 31;
and
(D) Nothing in this
section shall prohibit a utility from establishing a higher temperature
threshold below which it will not discontinue utility service.
(6) Discontinuance of Service.
From November 1 through March 31, a utility may not discontinue heat-related
residential utility service due to nonpayment of a delinquent bill or account
provided-
(A) The customer contacts the
utility and states his/her inability to pay in full;
(B) The utility receives an initial payment
and the customer enters into a payment agreement both of which are in
compliance with section (10) of this rule;
(C) The customer complies with the utility's
requests for information regarding the customer's monthly or annual income;
and
(D) There is no other lawful
reason for discontinuance of utility service.
(7) Whenever a customer, with a cold weather
rule payment agreement, moves to another residence within the utility's service
area, the utility shall permit the customer to receive service if the customer
pays in full the amounts that should have been paid pursuant to the agreement
up to the date service is requested, as well as, amounts not included in a
payment agreement that have become past due. No other change to the terms of
service to the customer by virtue of the change in the customer's residence
with the exception of an upward or downward adjustment to payments necessary to
reflect any changes in expected usage between the old and new residence shall
be made.
(8) Deposit Provisions. A
utility shall not assess a new deposit or bill deposits that were previously
assessed during or after the period of this rule to those customers who enter
into a payment agreement and make timely payments in accordance with this
rule.
(9) Reconnection Provisions.
If a utility has discontinued heat-related utility service to a residential
customer due to nonpayment of a delinquent account, the utility, from November
1 through March 31, shall reconnect service to that customer without requiring
a deposit; provided-
(A) The customer
contacts the utility, requests the utility to reconnect service, and states an
inability to pay in full;
(B) The
utility receives an initial payment and the customer enters into a payment
agreement both of which are in compliance with section (10) of this
rule;
(C) The customer complies
with the requests of the utility for information regarding the customer's
monthly or annual income;
(D) None
of the amount owed is an amount due as a result of unauthorized interference,
diversion, or use of the utility's service, and the customer has not engaged in
such activity since last receiving service; and
(E) There is no other lawful reason for
continued refusal to provide utility service.
(10) Payment Agreements. The payment
agreement for service under this rule shall comply with the following:
(A) A pledge of an amount equal to any
payment required by this section by the agency which administers LIHEAP shall
be deemed to be the payment required. The utility shall confirm in writing the
terms of any payment agreement under this rule, unless the extension granted
the customer does not exceed two (2) weeks.
(B) Payment Calculations.
1. The utility shall first offer a
twelve-(12-) month budget plan which is designed to cover the total of all
preexisting arrears, current bills, and the utility's estimate of the ensuing
bills.
2. If the customer states an
inability to pay the budget plan amount, the utility and the customer may upon
mutual agreement enter into a payment agreement which allows payment of
preexisting arrears over a reasonable period in excess of twelve (12) months.
In determining a reasonable period of time, the utility and the customer shall
consider the amount of the arrears, the time over which it developed, the
reasons why it developed, the customer's payment history, and the customer's
ability to pay.
3. A utility shall
permit a customer to enter into a payment agreement to cover the current bill
plus arrearages in fewer than twelve (12) months if requested by the
customer.
4. The utility may revise
the required payment in accordance with its budget or levelized payment
plan.
5. If a customer defaults on
a cold weather rule payment agreement but has not yet had service discontinued
by the utility, the utility shall permit such customer to be reinstated on the
payment agreement if the customer pays in full the amounts that should have
been paid pursuant to the agreement up to the date service is requested, as
well as, amounts not included in a payment agreement that have become past
due.
(C) Initial
Payments.
1. For a customer who has not
defaulted on a payment plan under the cold weather rule, the initial payment
shall be no more than twelve percent (12%) of the twelve- (12-) month budget
bill amount calculated in subsection (10)(B) of this rule unless the utility
and the customer agree to a different amount.
2. For a customer who has defaulted on a
payment plan under the cold weather rule, the initial payment shall be an
amount equal to eighty percent (80%) of the customer's balance, unless the
utility and customer agree to a different amount.
(11) If a utility refuses to
provide service pursuant to this rule and the reason for refusal of service
involves unauthorized interference, diversion, or use of the utility's service
situated or delivered on or about the customer's premises, the utility shall
maintain records concerning the refusal of service which, at a minimum, shall
include: the name and address of the person denied reconnection, the names of
all utility personnel involved in any part of the determination that refusal of
service was appropriate, the facts surrounding the reason for the refusal and
any other relevant information.
(12) The commission shall recognize and
permit recovery of reasonable operating expenses incurred by a utility because
of this rule.
(13) A utility may
apply for a variance from this rule by filing an application for variance with
the commission pursuant to the commission's rules of procedure. A utility may
also file for commission approval of a tariff or tariffs establishing
procedures for limiting the availability of the payment agreements under
section (10) of this rule to customers residing in households with income
levels below one hundred fifty percent (150%) of the federal poverty level, and
for determining whether, and under what circumstances, customers who have
subsequently defaulted on a new payment plan calculated under paragraph
(10)(C)2. should be required to pay higher amounts toward delinquent
installments owed under that payment plan.
(14) This section only applies to providers
of natural gas services to residential customers. Other providers of
heat-related utility services will continue to provide such service under the
terms of sections (1) through (13) of this rule. The provisions of sections (1)
through (13) of this rule continue to apply to providers of natural gas service
except where inconsistent with the terms of this section.
(A) From November 1 through March 31,
notwithstanding paragraph (10)(C)2. of this rule to the contrary, a gas utility
shall restore service upon initial payment of the lesser of fifty percent (50%)
or five hundred dollars ($500) of the preexisting arrears, with the deferred
balance to be paid as provided in subsection (10)(B). Any reconnection fee,
trip fee, collection fee, or other fee related to reconnection, disconnection,
or collection shall also be deferred. Between November 1 and March 31, any
customer threatened with disconnection may retain service by entering into a
payment plan as described in this section. Any payment plan entered into under
this section shall remain in effect (as long as its terms are adhered to) for
the term of the payment plan, which shall be twelve (12) months' duration,
unless the customer requests a shorter period or the utility agrees to a longer
period. However, a gas utility shall not be required to offer reconnection or
retention of service under this subsection (14)(A) more than once every two (2)
years for any customer or to any customer who has defaulted on a payment plan
under this section three (3) or more times.
(B) Any customer who is not disconnected or
in receipt of a disconnect notice shall, at the customer's request, be
permitted to enroll immediately in a gas utility's equal payment,
budget-billing, or similar plan. Any current bill or existing arrearage at the
time of enrollment shall be dealt with consistent with paragraphs (10)(B)1.
through (10)(B)4. of this rule, provided that the customer agrees to make the
initial payment prescribed in paragraph (10)(C)1. or subsection (14)(A) as
applicable.
(C) If a customer
enters into a cold weather rule payment plan under this section:
1. Late payment charges shall not be assessed
except with respect to failure to make timely payments under the payment plan;
and
2. The gas utility shall not
charge customers interest on the account balance for any deferral
period.
(D) Any customer
who enters into a cold weather rule payment agreement under this section and
fully complies with the terms of the payment plan shall be treated, going
forward, as not having defaulted on any cold weather rule payment
agreement.
(E) A gas utility shall
describe the provisions of section (14) in any notices or contacts with
customers. In telephone contacts with customers expressing difficulty paying
their gas bills, gas utilities shall inform those customers of their options
under section (14).
(F) A gas
utility shall be permitted to recover the costs of complying with this section
as follows:
1. The cost of compliance with
this section shall include any reasonable costs incurred to comply with the
requirements of this section;
2. No
gas utility shall be permitted to recover costs under this section that would
have been incurred in the absence of this section, provided that the costs
calculated in accordance with paragraph (14)(F)1. shall be considered costs of
complying with this section;
3. Any
net cost resulting from this section as of June 30 each year shall accumulate
interest at the utility's annual short-term borrowing rate until such times as
it is recovered in rates; and
4. No
bad debts accrued prior to the effective date of this section may be included
in the costs to be recovered under this section, provided that a gas utility
may continue to calculate and defer for recovery through a separate Accounting
Authority Order the costs of complying with the commission's January 1, 2006
emergency amendment to this rule upon the same terms as set forth herein. The
costs eligible for recovery shall be the unpaid charges for new service
received by the customer subsequent to the time the customer is retained or
reconnected by virtue of this section plus the unpaid portion of the difference
between the initial payment paid under this section and the initial payment
that could have been required from the customer under the previously enacted
payment provisions of section (10) of this rule, as measured at the time of
subsequent disconnection for nonpayment or expiration of the customer's payment
plan.
(G) A gas utility
shall be permitted to defer and recover the costs of complying with this rule
through a one- (1-) term Accounting Authority Order until such time as the
compliance costs are included in rates as part of the next general rate
proceeding or for a period of two (2) years following the effective date of
this amendment.
1. The commission shall grant
an Accounting Authority Order, as defined below, upon application of a gas
utility, and the gas utility may book to Account 186 for review, audit and
recovery all incremental expenses incurred and incremental revenues that are
caused by this section. Any such Accounting Authority Order shall be effective
until September 30, of each year for the preceding winter.
2. Between September 30 and October 31 each
year, if a utility intends to seek recovery of any of the cost of compliance
with this section, the utility shall file a request for determination of the
cost of compliance with this section for the preceding winter season. The
request by the utility shall include all supporting information. All parties to
this filing will have no longer than one hundred twenty (120) days from the
date of such a filing to submit to the commission their position regarding the
company's request with all supporting evidence. The commission shall hold a
proceeding where the utility shall present all of its evidence concerning the
cost of compliance and other parties, including commission staff, shall present
any evidence that the costs asserted by the utility should be disallowed in
whole or part. Such a proceeding may be waived by the unanimous request of the
parties or by a non-unanimous request without objection. The commission shall
establish the amount of costs it determines have been reasonably incurred in
complying with this section within one hundred eighty (180) days of the
utility's request and such amount will be carried forward into the utility's
next rate case without reduction or alteration. Such costs shall be amortized
in rates over a period of no greater than five (5) years and shall be recovered
in a manner that does not impair the utility's ability to recover other costs
of providing utility service. If the commission fails to establish the amount
of costs within one hundred eighty (180) days, then the amount requested by the
utility shall be deemed reasonably incurred.
3. The commission has adopted the Uniform
System of Accounts in
4 CSR
240-4.040. Accounting Authority Orders are commission
orders that allow a utility to defer certain expenses to Account 186 under the
Uniform System of Accounts for later recovery as determined by the commission
in a subsequent general rate case.
4. Although the Accounting Authority Order
allows the gas utility to recover the reasonably incurred expenses only within
the context of a general rate case, all such reasonably incurred expenses shall
be recovered by the gas utility, together with interest thereon, as set forth
above.
(15)
Each utility providing heat-related utility service shall submit as a non-case
related filing a report with the commission for each calendar month no later
than the twentieth (20th) day of the following month. The utility shall provide
a copy of each report to the Office of the Public Counsel. The utility shall
report for each operational district into which the utility has divided its
Missouri service territory the number of days it was permitted to discontinue
service under this regulation, and the utility shall separately report on the
information listed below for customers receiving energy assistance and
customers who are affected by this regulation and not known to be receiving
energy assistance. All information submitted shall be considered public
information; however, no customer-specific information shall be reported or
made public. Utilities providing both electric and gas service shall report the
following information separately for their gas-only territory:
(A) How many customers were-
1. Disconnected, at the end of the
period;
2. Of those disconnected,
how many customers had service discontinued for nonpayment during the period;
and
3. Of those discontinued during
the period, how many customers were restored to service during the
period;
(B) Of customers
reported as disconnected at the end of the period-
1. How many had broken a cold weather rule
pay agreement;
2. How many had
broken a non-cold weather rule pay agreement; and
3. How many had not been on a pay
agreement;
(C) Of those
customers reconnected during the period-
1.
How many customers received energy assistance (pledged or paid) from-
A. Low Income Home Energy Assistance Program
(LIHEAP);
B. Energy Crisis
Intervention Program (ECIP); and
C.
Other services known to the utilities; and
2. How much energy assistance was provided
by-
A. LIHEAP;
B. ECIP;
C. Other sources known to the utility;
and
D. Customer;
(D) Of customers
restored to service during the period-
1. How
many were put on a cold weather rule pay agreement; and
2. How many were put on a non-cold weather
rule pay agreement;
(E)
How much was owed by those disconnected at the end of the period-
1. How much was owed by those disconnected
during the period; and
2. How much
was owed by those reconnected during the period;
(F) How many customers were registered under
this regulation at the end of the period-
1.
How many customers registered during the period; and
2. How many of such registered customers had
service discontinued during the period;
(G) For how many customers during the period
did the utility receive-
1. LIHEAP;
2. ECIP; and
3. Other assistance known to the utility;
(H) How much cash did the utility receive on
behalf of customers during the period from-
1. LIHEAP;
2. ECIP; and
3. Others known to the
utility;
(I) How many
customers who requested reconnection under terms of this rule were refused
service pursuant to this regulation;
(J) How many customers received energy
assistance insufficient in amount to retain or restore service; and
(K) The number of customers who agreed to pay
for their heat-related utility service under a payment agreement in accordance
with this regulation.
*Original authority: 386.250, RSMo 1939, amended 1963,
1967, 1977, 1980, 1987, 1988, 1991, 1993, 1995, 1996; 393.130, RSMo 1939,
amended 1949, 1967, 1969, 2002; and 393.140, RSMo 1939, amended 1949,
1967.
