Current through August 26, 2024
(1) NEW RESIDENTIAL SERVICE.
(a) A utility shall not require a cash
deposit or other guarantee as a condition of new residential service unless a
customer has an outstanding account balance with any Wisconsin gas utility
which accrued within the last 6 years and for which there is no agreement or
arrangement for payment being honored by the customer, and which at the time of
the request for new service remains outstanding and not in dispute, as defined
in s.
PSC 134.064.
(b) A deposit under this section shall not be
required if the customer provides the utility with information showing that his
or her gross quarterly income is at or below 200% of federal income poverty
guidelines.
(c) A utility shall
inform the customer of his or her right to enter into a deferred payment
agreement for payment of the deposit amount and of his or her right to appeal
any deposit request or amount required under this section to the public service
commission.
(2) DEFERRED
PAYMENT. In lieu of cash deposit or guarantee, an applicant for new residential
service who has an outstanding account balance accrued within the last 6 years
with the same utility shall have the right to receive service from that utility
under a deferred payment agreement, as defined in s.
PSC 134.063, for the outstanding account. A customer who
defaults on the deferred payment agreement may be required by the utility to
furnish a deposit.
(3) GUARANTEE
TERMS AND CONDITIONS.
(a) A utility may
accept, in lieu of a cash deposit for new or existing residential service, a
contract signed by a guarantor satisfactory to the utility whereby payment of a
specified sum not exceeding the cash deposit requirement is guaranteed, or
whereby the guarantor accepts responsibility for payment of all future bills.
If the guarantor accepts responsibility for payment of future bills, the
utility shall notify the customer in writing of the agreement, and of the
customer's right to refuse such an agreement. The term of the contract shall be
for no longer than one year, but it shall automatically terminate after the
residential customer has closed his or her account with the utility, or on the
guarantor's request upon 30 days' written notice to the utility.
(b) Upon termination of a guarantee contract,
or whenever the utility deems the guarantee insufficient as to amount of
surety, a cash deposit or a new or additional guarantee may be required upon
20-day written notice to the customer. The service of any customer who fails to
comply with these requirements may be disconnected upon 8 days' written
notice.
(c) The utility shall mail
the guarantor copies of all disconnect notices sent to the customer whose
account has been guaranteed, unless the guarantor waives such notice in
writing.
(4) EXISTING
RESIDENTIAL SERVICE.
(a) A utility may require
a cash deposit or other guarantee as a condition of residential service if any
of the following circumstances apply:
1. The
utility has disconnected the customer's service within the last 12-month period
for violation of the utility's filed rules or for nonpayment of a delinquent
service account not currently in dispute.
2. Subsequent credit information indicates
that the initial application for service was falsified.
3. The customer had the ability to pay for
the utility service but, during the cold weather disconnection rules period,
had an arrears amount incurred during that period, that was 80 days or more
past due. The utility may request a deposit under this section even if the
customer's service has not been disconnected.
(b) A deposit under this section shall not be
required if the customer provides the utility with information showing that his
or her gross quarterly income is at or below 200% of the federal income poverty
guidelines.
(c) When the utility
requests a deposit of an existing residential customer, the customer shall be
informed of his or her right to provide the deposit, guarantee, or to establish
a deferred payment agreement. The customer shall be given 30 days to provide
the deposit, guarantee, or enter into a deferred payment agreement for payment
of the deposit amount.
(5) WRITTEN EXPLANATION. A utility shall
provide a written explanation of why a deposit or guarantee is being required
for a residential account. The explanation shall include notice of the
customer's right to appeal any deposit request or amount required under this
section to the public service commission.
(6) REASONABLENESS OF DEPOSIT. When
requesting a deposit from a residential customer, the utility shall consider
the customer's ability to pay, including the following factors, in determining
the reasonableness of its request:
(a) Size of
the delinquent account.
(b)
Customer's payment history.
(c)
Time that the debt has been outstanding.
(d) Reasons why the debt has been
outstanding.
(e) Any other relevant
factors concerning the circumstances of the customer, as household size, income
and expenses.
(7) AMOUNT
OF DEPOSIT.
(a) The maximum deposit for a new
residential account shall not exceed the highest estimated gross bills for any
2 consecutive billing periods selected by the utility.
(b) Except as provided in par. (c), the
maximum deposit for an existing residential account shall not exceed the
highest actual gross bills for any 2 consecutive months within the preceding 12
month review period, as determined by the utility.
(c) If, during the cold weather disconnection
rules period, a customer had an arrears amount incurred during this period that
was 80 days or more past due and had the ability to pay for utility service,
the deposit may not exceed the highest actual gross bills for any 4 consecutive
months within the preceding 12 month review period, as determined by the
utility.
(8) REFUSAL OR
DISCONNECTION OF SERVICE. Residential service may be refused or disconnected
for failure to pay a deposit request subject to the rules pertaining to
disconnection and refusal of service, as provided in s.
PSC 134.062.
(9) INTEREST.
(a) Deposits for residential accounts shall
bear interest payable from the date a deposit is made to the date it is applied
to an account balance or is refunded.
(b) The interest rate to be paid shall be
subject to change annually on a calendar year basis. The commission shall
determine the rate of interest to be paid on deposits held during the following
calendar year and notify utilities of that rate by December 15 of each year.
The rate shall be equal to the weekly average yield of one-year United States
treasury securities adjusted for constant maturity for the week ending on or
after December 1 made available by the federal reserve board, rounded to the
nearest tenth of one per cent.
(c)
The rate of interest set by the commission shall be payable on all deposits.
Utilities shall calculate the interest earned on each deposit at the time of
refund and at the end of each calendar year. The interest rate in a calendar
year shall apply to the amount of the deposit and to all interest accrued
during the previous year(s), for the fraction of the calendar year that the
deposit was held by the utility.
(10) REFUND. The utility shall refund the
deposit of a residential customer after 12 consecutive months of prompt
payment.
(11) REVIEW. The utility
shall not continue to require a cash deposit for a residential account unless a
deposit is permitted under the provisions of sub. (4) or (10).
(12) METHOD OF REFUND. Any deposit or portion
thereof refunded to a residential customer shall be refunded by check unless
both the customer and the utility agree to a credit on the regular billing, or
unless sub. (14) applies.
(13)
REFUND AT TERMINATION OF SERVICE. On termination of residential service, the
utility shall credit the deposit, with accrued interest, to the customer's
final bill and return the balance within 30 days of issuing the final
bill.
(14) ARREARAGES. An arrearage
owed by a [residential] customer may be deducted from the customer's deposit
under the following conditions:
(a) Except as
provided in par. (c), a deposit may be used by the utility only to satisfy an
arrearage occurring after the deposit was made.
(b) If the utility deducts an arrearage from
a customer deposit, it may require the customer to bring the deposit up to its
original amount. Failure of the customer to do so within 20 days of mailing a
written request for payment is ground for disconnection.
(c) When a deposit is refunded to the
customer, the utility may first deduct any arrearage owed by the customer,
whether the arrearage arose prior to or after the date of the
deposit.
(15)
APPLICABILITY. The provisions in subs. (2) and (3) are not applicable to
deposits or guarantees made in connection with the financing of extensions or
other equipment.
