Ohio Administrative Code
Title 122:5 - Office of Community Services
Chapter 122:5-3 - Percentage of Income Payment Plan (PIPP) Program
Section 122:5-3-04 - Payment and crediting arrangements and responsibilities

(1) Monthly PIPP plus installment amount. For a PIPP plus customer with an electric baseload residence, the monthly PIPP plus installment amount shall be the greater of five per cent of such customer's monthly household income, as determined based on current income information provided by the PIPP plus customer at the time of application or subsequent income verification, or the minimum monthly PIPP plus installment amount described in paragraph (C) of rule 122:5-3-02 of the Administrative Code. For a PIPP plus customer with an electrically heated residence, the monthly PIPP plus installment amount shall be the greater of ten per cent of such customer's monthly household income, as determined based on current income information provided by the PIPP plus customer at the time of application or subsequent income verification, or the minimum monthly PIPP plus installment amount.

(2) Payment to electric utility. PIPP plus customers shall be required to remit their monthly PIPP plus installment amounts directly to electric distribution utilities each month. Subject to commission rules applicable to customer billing, paragraph (G) of rule 4901:1-10-22 of the Administrative Code (or any successor rule of substantially the same effect), and any agreements between the director and electric distribution utilities regarding PIPP plus procedures, the monthly PIPP plus installment amounts will be shown on monthly bills for electric service. Customer payments shall be credited to the accounts of PIPP plus customers by each electric distribution utility in accordance with payment crediting rules of the commission. Consistent with the commission rule as set forth in paragraph (C) of rule 4901:1-18-15 of the Administrative Code (or any successor rule of substantially the same effect), electric distribution utilities shall not charge late payment fees to any PIPP plus customer as long as such customer continues to be an active PIPP plus customer and no late fees shall be charged to or payable from the fund.

(3) Money other than HEAP, emergency HEAP, or money provided on a monthly basis by a public or private agency for the purpose of paying utility bills shall first be applied to the customer's defaulted current monthly payment obligation (this could be PIPP plus default, graduate PIPP plus default, or extended payment plan default), if any, then applied to the customer's current monthly income-based payment obligation (this could be PIPP plus installment, graduate PIPP plus installment, or extended payment plan obligation), and lastly, shall be applied to the customer's arrearages.

(1) Customer arrearages paid from fund. Since the administration of the PIPP plus program was transferred to the development services agency pursuant to section 4928.53 of the Revised Code, electric distribution utilities have been paid for customer arrearages from the fund. Accrued arrearages have generally been charged to the director and paid to the affected electric distribution utility upon enrollment of an eligible customer in the PIPP plus program. Current bill balances have been charged to the director monthly and paid from the fund. From and after the effective date of this rule, the director shall continue to pay from the fund accrued arrearages upon initial enrollment of an eligible customer in the PIPP plus program and monthly current bill balances according to the payment procedures described in rule 122:5-3-05 of the Administrative Code. Each electric distribution utility will maintain accurate records of all customer arrearages paid or reimbursed to the utility through any percentage of income payment plan mechanism, and such records shall be maintained in a form that such electric distribution utility can readily report customer arrearages on a per customer and aggregate basis. Electric distribution utilities shall not be paid any amount included in any customer arrearages that has previously been paid or reimbursed to the utility through any percentage of income payment plan mechanism.

(2) Monthly payment amounts not counted as arrearages. Electric distribution utilities shall not be entitled to recover from the fund, and they shall not charge to the director, any deficiencies accruing as a result of a PIPP plus customer's failure to pay monthly PIPP plus installment amounts. Such deficiencies also shall not be counted as customer arrearages for purposes of the arrearage crediting program provided by this rule.

(3) Arrearage credits for eligible customers. Each PIPP plus customer who makes an on-time payment of the monthly PIPP plus installment amount shall receive a credit applied in the same month as the on-time payment against customer arrearages as described in this paragraph. The amount of the arrearage credit that may be earned by a PIPP plus customer each month for making an on-time payment of the monthly PIPP plus installment amount shall be the sum of the current bill balance, plus an accrued arrearage credit determined by the electric distribution utility as provided in this rule. The accrued arrearage credit shall be the amount that would reduce the PIPP plus customer's accrued arrearages to zero over a twenty-four month period assuming on-time payment of all monthly PIPP plus installment amounts during that period. The amount of the accrued arrearage credit will be determined initially based on the customer's accrued arrearages at the time the customer enrolls in the PIPP plus program. The electric distribution utility shall calculate the customer's arrearage credit amount upon the customer's enrollment in the PIPP plus program and provide such customer's PIPP plus arrearage credit amount to the office of community assistance via an electronic data transfer. The accrued arrearage credit amount shall be reviewed annually by the electric distribution utility at or about the customer's PIPP plus anniversary date and, for each PIPP plus customer who has not made each monthly payment on-time during the prior year, adjusted to account for months for which the on-time payment credit was not earned by the customer. The recalculated accrued arrearage credit shall be an amount equal to one twenty-fourth of the customer's accrued arrearages, including any accrued arrearage amount for which a credit was not earned during the prior year and any current bill balance(s) for which a credit was not earned during the prior year, but not including any missed monthly PIPP plus installment amounts. The electric distribution utility shall provide such customer's recalculated PIPP plus arrearage credit amount to the office of community assistance via an electronic data transfer. For a PIPP plus customer who made each monthly payment on-time during the prior year, the accrued arrearage credit amount shall remain the same as during the prior year. For a PIPP plus customer with no accrued arrearage, the monthly arrearage credit would be an amount equal to the customer's current bill balance for that billing cycle. Arrearage credits will be applied against customer arrearages only. PIPP plus customers may not earn arrearage credits pursuant to this rule for any missed monthly PIPP plus installment amounts. Arrearage credits may not be accumulated on a customer account that is current and applied against future service.

If a PIPP plus customer's account balance becomes a credit balance, the customer will no longer be eligible for the incentive credits until such time that the account balance is no longer a credit. If the credit balance is not the result of any incentive credits, the credit balance may be refunded to the customer upon request. At the time of such refund, the electric utility shall remove the account from PIPP plus and inform the customer of the availability of a more suitable payment plan option.

(4) Notice of accrued arrearage credit amounts. The customer's accrued arrearage credit shall be noted on the customer's utility bill promptly after it is received from the electric distribution utility via the electronic data transfer described in paragraph (B)(3) of this rule. Such electric distribution utility shall apply arrearage credits for such customer beginning with the next billing cycle after the calculation or recalculation of such customer's accrued arrearage credit amount. Electric distribution utilities shall apply arrearage credits to each bill for which an on-time payment of the monthly PIPP plus installment amount is made.

(5) Graduate PIPP plus transition assistance and post-PIPP plus arrearage credits. If a customer ceases to participate in the PIPP plus program voluntarily (which does not include being dropped from the PIPP plus program for failing to provide information necessary to complete periodic eligibility re-verification or comply with other PIPP plus program requirements) or because the customer is no longer eligible to participate based on income, such customer may nevertheless receive transition assistance and arrearage credits against customer arrearages accumulated but not paid at the time such customer ceases to participate in the PIPP plus program. To qualify for graduate PIPP plus transition assistance and post-PIPP plus arrearage credits, a customer must pay all missed monthly PIPP plus installment amounts, if any, owed to the electric distribution utility for which transition assistance or arrearage credits will be provided. A customer will be eligible to receive graduate PIPP plus transition assistance and post-PIPP plus arrearage credits under this rule based on payments made during the twelve months immediately following the last billing cycle during which the customer ceases to participate in the PIPP plus program. Graduate PIPP plus transition assistance and post-PIPP plus arrearage credits under this rule will be applied only against customer arrearages accumulated at the time the customer ceases to participate in the PIPP plus program. Arrearage credits may not be accumulated on a customer account that is current and applied against future service.

(6) Limitations on arrearage credits. The arrearage credits provided in paragraph (B) of this rule apply only to customer arrearages for which electric distribution utilities have been paid through a percentage of income payment plan mechanism. Arrearage credits provided in paragraph (B) of this rule may not be earned based on payments made from federal funds administered by the office of community assistance.