HF 2097

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; regulating service disconnections by public utilities during
winter; proposing coding for new law in Minnesota Statutes, chapter 216B;
repealing Minnesota Statutes 2006, section 216B.095.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [216B.096] COLD WEATHER RULE; PUBLIC UTILITIES.
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new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section applies only to residential customers of a
public utility.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The terms used in this section have the meanings given
them in this subdivision.
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new text begin (b) "Cold weather period" means the period from October 15 through April 15 of
the following year.
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new text begin (c) "Customer" means a residential customer of a utility.
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new text begin (d) "Customer's income" means the actual monthly income of the customer or the
average monthly income of the customer computed on a calendar year basis, whichever is
less, and does not include any amount received for energy assistance.
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new text begin (e) "Disconnection" means the involuntary loss of utility heating service as a result
of a physical act by a utility to discontinue service. Disconnection includes installation of
a service or load limiter or any device that limits or interrupts utility service in any way.
new text end

new text begin (f) "Household income" means the combined income, as defined in section 290A.03,
subdivision 3, of all residents of the customer's household, computed on an annual basis.
Household income does not include any amount received for energy assistance.
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new text begin (g) "Reasonably timely payment" means payment within seven calendar days of
agreed-upon due dates.
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new text begin (h) "Reconnection" means the restoration of utility heating service after it has been
disconnected.
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new text begin (i) "Third party notice" means a commission-approved notice containing, at a
minimum, the following information:
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new text begin (1) a statement that the utility will send a copy of any future notice of proposed
disconnection of utility heating service to a third party designated by the residential
customer;
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new text begin (2) instructions on how to request this service; and
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new text begin (3) a statement that the residential customer should contact the person the customer
intends to designate as the third party contact before providing the utility with the party's
name.
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new text begin (j) "Utility" means a public utility as defined in section 216B.02.
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new text begin (k) "Utility heating service" means natural gas or electricity used as a primary
heating source, including electricity service necessary to operate gas heating equipment.
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new text begin (l) "Working days" means Mondays through Fridays, excluding legal holidays.
new text end

new text begin Subd. 3. new text end

new text begin Utility obligations before cold weather period. new text end

new text begin (a) Each year, between
September 1 and October 15, each utility must notify all customers of the provisions of
this section. Notice must also be provided to all new residential customers when service is
initiated. Notice must, at a minimum, include:
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new text begin (1) an explanation of the customer's rights and responsibilities under subdivision 5;
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new text begin (2) an explanation of no-cost and low-cost methods to reduce the consumption
of energy; and
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new text begin (3) a third party notice.
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new text begin (b) Also, each year, between September 1 and October 15, each utility must attempt
to contact, establish a payment agreement, and reconnect utility heating service to all
customers who were disconnected after the preceding heating season. A record must be
made of all contacts and attempted contacts.
new text end

new text begin Subd. 4. new text end

new text begin Notice before disconnection during cold weather period. new text end

new text begin Before
disconnecting utility heating service during the cold weather period, a utility must provide
notice to a customer, in easy-to-understand language, that contains the following:
new text end

new text begin (1) the date of the scheduled disconnection;
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new text begin (2) the amount due;
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new text begin (3) ways to avoid disconnection;
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new text begin (4) information regarding payment agreements;
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new text begin (5) a statement explaining the customer's rights and responsibilities, including the
right to appeal a determination by the utility that the customer is not eligible for protection
and the right to request commission intervention if the utility and customer cannot arrive
at a mutually acceptable payment agreement;
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new text begin (6) a list of local energy assistance and weatherization providers in each county
served by the utility; and
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new text begin (7) a third party notice.
new text end

new text begin Subd. 5. new text end

new text begin Cold weather rule. new text end

new text begin (a) During the cold weather period, a utility may
not disconnect and must reconnect a customer whose household income is at or below
50 percent of the state median income if the customer enters into and makes reasonably
timely payments under a mutually acceptable payment agreement with the utility that is
based on the financial resources and circumstances of the household; provided that, a
utility may not require a customer to pay more than ten percent of the customer's income
toward current and past utility bills for utility heating service.
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new text begin (b) A utility may accept more than ten percent of the household income as the
payment arrangement amount if agreed to by the customer.
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new text begin (c) The customer or a designated third party may request a modification of the terms
of a payment agreement previously entered into if the customer's financial circumstances
have changed or the customer is unable to make reasonably timely payments. The utility
may refer to commission staff a customer who requests more than two modifications of a
payment agreement during a single cold weather rule period if no payments have been
made.
new text end

new text begin (d) The payment agreement terminates at the expiration of the cold weather period
unless a longer period is mutually agreed to by the customer and the utility.
new text end

new text begin Subd. 6. new text end

new text begin Verification of income. new text end

new text begin (a) In verifying a customer's household income,
a utility may:
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new text begin (1) accept the signed statement of a customer that the customer is income eligible;
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new text begin (2) obtain income verification from a local energy assistance provider or a
government agency;
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new text begin (3) consider one or more of the following:
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new text begin (i) the most recent income tax return filed by members of the customer's household;
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new text begin (ii) for each employed member of the customer's household, paycheck stubs for the
last two months or a written statement from the employer reporting wages earned during
the preceding two months;
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new text begin (iii) a customer's Medicaid card, documentation that the customer receives food
stamps, or a food support eligibility document;
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new text begin (iv) documentation that the customer receives a pension from the Department of
Human Services, the Social Security Administration, the Veteran's Administration, or
other pension provider;
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new text begin (v) a letter showing the customer's dismissal from a job or other documentation of
unemployment; or
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new text begin (vi) other documentation that supports the customer's declaration of income
eligibility.
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new text begin (b) A customer who receives energy assistance benefits under any federal, state,
or county government programs in which eligibility is defined as household income at
or below 50 percent of state median income is deemed to be automatically eligible for
protection under this section and no other verification of income may be required.
new text end

new text begin Subd. 7. new text end

new text begin Prohibitions and requirements. new text end

new text begin During the cold weather period:
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new text begin (a) A utility may not charge a deposit or delinquency charge to a customer who has
entered into a payment agreement or a customer who has appealed to the commission
under subdivision 8.
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new text begin (b) A utility may not disconnect service during the following periods:
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new text begin (1) during the pendency of any appeal under subdivision 8;
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new text begin (2) earlier than ten working days after a utility has deposited in first class mail,
or seven working days after a utility has personally served, the notice required under
subdivision 4 to a customer in an occupied dwelling;
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new text begin (3) earlier than ten working days after the utility has deposited in first class mail
the notice required under subdivision 4 to the recorded billing address of the customer,
if the utility has reasonably determined from an on-site inspection that the dwelling
is unoccupied;
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new text begin (4) on a Friday, unless the utility makes personal contact with, and offers a payment
agreement to, the customer;
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new text begin (5) on a Saturday, Sunday, holiday, or the day before a holiday;
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new text begin (6) when utility offices are closed;
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new text begin (7) when no utility personnel are available to resolve disputes, enter into payment
agreements, accept payments, and reconnect service; or
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new text begin (8) when commission offices are closed.
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new text begin (c) Also, a utility may not discontinue service until the utility investigates whether
the dwelling is actually occupied. At a minimum, the investigation must include one visit
by the utility to the dwelling during normal working hours. If no contact is made and
there is reason to believe that the dwelling is occupied, the utility must attempt a second
contact during nonbusiness hours. If personal contact is made, the utility representative
must provide notice required under subdivision 4 and, if the utility representative is not
authorized to enter into a payment agreement, the telephone number the customer can call
to establish a payment agreement.
new text end

new text begin (d) Each utility must reconnect utility service if, following disconnection, the
dwelling is found to be occupied and the customer agrees to enter into a payment
agreement or appeals to the commission because the customer and the utility are unable to
agree on a payment agreement.
new text end

new text begin Subd. 8. new text end

new text begin Disputes; customer appeals. new text end

new text begin (a) A utility must provide the customer
and any designated third party with a commission-approved written notice of the right
to appeal:
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new text begin (1) a utility determination that the customer's household income is more than 50
percent of state median household income; or
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new text begin (2) when the utility and customer are unable to agree on the establishment or
modification of a payment agreement.
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new text begin (b) A customer's appeal must be filed with the commission no later than seven
working days after the customer's receipt of a personally served disconnection notice, or
within ten working days after the utility has deposited a first class mail notice. If no
disconnection notice has been issued, an appeal may be filed at any time.
new text end

new text begin (c) The commission must determine all customer appeals on an informal basis,
within 30 calendar days of receipt of a customer's written appeal. In making its
determination, the commission must consider one or more of the factors in subdivision 6,
paragraph (a), clauses (2) and (3).
new text end

new text begin (d) Notwithstanding any other law, following an appeals decision adverse to the
customer, a utility may not disconnect utility heating service for seven working days
after the utility has personally served a disconnection notice, or for ten working days
after the utility has deposited a first class mail notice. The notice must contain, in
easy-to-understand language, the date on or after which disconnection will occur, the
reason for disconnection, and ways to avoid disconnection.
new text end

new text begin Subd. 9. new text end

new text begin Utility appeals. new text end

new text begin A utility may file an appeal of the commission's informal
determination under subdivision 8 within 14 working days after it is issued. An appeal
must be in writing, on forms prescribed by the commission. A copy of the appeal and a
commission-approved letter explaining that the customer may have service disconnected
must be mailed by the utility to the local human services or social services agency and
the local energy assistance provider on the same day as the utility mails its appeal to
the commission.
new text end

new text begin Subd. 10. new text end

new text begin Reporting. new text end

new text begin Annually on November 1, a utility must file with the
commission a report specifying the number of utility heating service customers whose
service is disconnected or remains disconnected as of October 1 and October 15. If
customers remain disconnected on October 15, a utility must file a report each week
between November 1 and the end of the cold weather period specifying:
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new text begin (1) the number of utility heating service customers that are or remain disconnected
from service; and
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new text begin (2) the number of utility heating service customers that are reconnected to service
each week. The utility may discontinue weekly reporting if the number of utility heating
service customers that are or remain disconnected reaches zero before the end of the
cold weather period.
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Sec. 2. new text begin RULES; INSTRUCTION TO COMMISSION AND REVISOR.
new text end

new text begin Subdivision 1. new text end

new text begin Public Utilities Commission. new text end

new text begin The commission must amend
Minnesota Rules, chapters 7820 and 7831, to conform with the provisions of section 1 as
authorized under Minnesota Statutes, section 14.388, subdivision 1, clause (3).
new text end

new text begin Subd. 2. new text end

new text begin Revisor of statutes. new text end

new text begin The revisor of statutes shall change the reference from
"216B.095" to "216B.096" wherever found in Minnesota Rules, chapter 7820.
new text end

Sec. 3. new text begin REPEALER.
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new text begin Minnesota Statutes 2006, section 216B.095, new text end new text begin is repealed.
new text end