SF 853

as introduced - 88th Legislature (2013 - 2014) Posted on 03/01/2013 09:10am

A bill for an act
relating to energy; regulating certain residential heating propane suppliers;
proposing coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.0991] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 216B.0991 to 216B.0996, the
terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Business day. new text end

new text begin "Business day" means Monday through Thursday, or
Monday through Friday if the company regularly conducts business on Saturday,
excluding legal holidays and any other time, or the day before that time, when the
company's business offices are not open to the public.
new text end

new text begin Subd. 3. new text end

new text begin Company. new text end

new text begin "Company" or "gas company" means a retail distributor,
receiving more than $200,000 in a heating season from LIHEAP, that provides gas for
the primary source of heat for the interior of a structure used by one or more individuals
as a principal place of residence.
new text end

new text begin Subd. 4. new text end

new text begin Consumer. new text end

new text begin "Consumer" means any person who purchases or agrees to pay
consideration for gas for residential heating use and not for resale.
new text end

new text begin Subd. 5. new text end

new text begin Delinquency. new text end

new text begin "Delinquency" means failure of the consumer to make
payment in full for a valid bill or charge within 20 days of the postmark date of that bill or
charge, or by a "due date" at least 20 days after mailing or delivery, which must be written
on the bill and which controls in the absence of a postmark.
new text end

new text begin Subd. 6. new text end

new text begin Discontinuation. new text end

new text begin "Discontinuation" or "discontinue" means the refusal to
deliver gas or an interruption or discontinuation of service by a gas company of gas to a
consumer previously receiving service from the company.
new text end

new text begin Subd. 7. new text end

new text begin Gas. new text end

new text begin "Gas" means liquified petroleum gas commonly referred to as propane.
new text end

new text begin Subd. 8. new text end

new text begin Heating season. new text end

new text begin "Heating season" means the time period from October 15
until April 15.
new text end

new text begin Subd. 9. new text end

new text begin LIHEAP customer. new text end

new text begin "LIHEAP customer" means a low-income customer
who qualifies for or receives assistance from the federal Low-Income Home Energy
Assistance Program.
new text end

new text begin Subd. 10. new text end

new text begin Physician's certificate. new text end

new text begin "Physician's certificate" means a written
statement by a duly licensed medical or osteopathic physician certifying that a consumer
or a resident in the consumer's household would suffer a specified immediate and serious
health hazard by the discontinuation of the company's service to that household during the
heating season. The certificate is valid and in force for 30 days, or the specified duration
of the hazard, whichever is later.
new text end

Sec. 2.

new text begin [216B.0992] PRICE DISCLOSURE AND FEES.
new text end

new text begin A gas company must provide public access to its current price of gas and all
additional charges and discounts for residential heating gas service. This information shall
be displayed prominently and shall be available to the general public upon request. A gas
company must make that information available to new residential delivery customers upon
initiation of gas service.
new text end

Sec. 3.

new text begin [216B.0993] BUDGET PAYMENT PLAN.
new text end

new text begin (a) A gas company must offer reasonable and effective budget payment plans to its
residential delivery customers.
new text end

new text begin (b) A budget payment plan must provide the residential delivery customer with a
budget payment plan for levelizing the bill for gas and gas services and equipment. Budget
payment plans must be designed to spread a residential delivery customer's projected
annual gas cost over a 12-month period, lowering the cost of seasonally higher bills.
new text end

new text begin (c) A budget payment plan must be available to any residential delivery customer
who is either current in payments for gas service or who has entered into and is complying
with a contract for propane services at any time of year, without regard to the residential
delivery customer's length of service with the gas company.
new text end

new text begin (d) In the case of a positive balance at the conclusion of an annual budget payment
plan, customers may choose between credit or cash refund.
new text end

new text begin (e) Gas companies must notify customers within 30 days of price or fee change that
may impact the level of a budget payment plan.
new text end

Sec. 4.

new text begin [216B.0994] DISCONTINUANCE OF SERVICE.
new text end

new text begin Subdivision 1. new text end

new text begin Grounds for discontinuance. new text end

new text begin (a) A gas company may not
discontinue gas service without the consent of the consumer unless there is a delinquency
and notice of discontinuation has been provided to the consumer at least 14 days, but not
more than 20 days, prior to discontinuation.
new text end

new text begin (b) A copy of the discontinuation notice must be delivered to the occupant of the
affected dwelling.
new text end

new text begin (c) A consumer may not be discontinued if:
new text end

new text begin (1) the discontinuation would occur during the heating season and present an
immediate and serious hazard to the health of an occupant of the dwelling, as set forth in a
physician's certificate furnished to the company. Notice by telephone or otherwise that the
certificate will be forthcoming is a receipt of the certificate if received within seven days; or
new text end

new text begin (2) the consumer has not been given an opportunity to enter into a reasonable
repayment agreement to pay the delinquent bill or, having made an agreement, has abided
by its terms. A reasonable repayment agreement must consider, but is not limited to, the
amount of the delinquency, the consumer's ability to pay, the reason the account became
delinquent, and whether the customer meets the income qualifications for LIHEAP.
new text end

new text begin (d) A reasonable repayment agreement must be at least six months in duration.
new text end

new text begin (e) This subdivision shall not apply to any discontinuation or interruption of service
made necessary for reasons of the immediate health or safety of the consumer or the
general public.
new text end

new text begin Subd. 2. new text end

new text begin Discontinuation notice form. new text end

new text begin A discontinuation notice must be clearly
printed and shall contain all of the following information:
new text end

new text begin (1) if discontinuation is to occur during the heating season, a list as annually
compiled and distributed by the Department of Commerce, of the names, addresses, and
telephone numbers of governmental and private agencies that may provide assistance to
consumers in paying their gas bills;
new text end

new text begin (2) procedures for filing a complaint, including the phone number of the Consumer
Affairs Office of the commission; and
new text end

new text begin (3) any other information not inconsistent with clauses (1) and (2).
new text end

Sec. 5.

new text begin [216B.0995] NONDISCRIMINATION.
new text end

new text begin (a) A gas company that offers prepurchase contracts, keep-fill delivery, credit
payments, and any other residential service delivery terms must offer the same terms to
all new and existing customers.
new text end

new text begin (b) A gas company shall not refuse to deliver to residents of mobile home parks if:
new text end

new text begin (1) the company has not offered the mobile home park resident customer service
under all of the provisions of sections 216B.0991 to 216B.0996; or
new text end

new text begin (2) if a resident meets the terms of these provisions.
new text end

Sec. 6.

new text begin [216B.0996] TERMS OF SALE.
new text end

new text begin Subdivision 1. new text end

new text begin Minimum delivery. new text end

new text begin A gas company may not require a consumer
to make a minimum purchase of more than 125 gallons at a time, or more than the total
capacity of the consumer's existing tank, whichever is less. This applies to all deliveries,
including the initial installation.
new text end

new text begin Subd. 2. new text end

new text begin Cash sales. new text end

new text begin (a) A gas company with available supply of gas must not fail
or refuse to sell gas to a consumer if the consumer is ready, willing, and able to pay the
lawful price upon delivery in cash, by certified or cashier's check, by commercial money
order or its equivalent, or to a governmental or private agency that has funds available to
pay for a delivery.
new text end

new text begin (b) If there is a delinquency in the consumer's account, the cash payment shall
be applied in the following manner: 75 percent toward the current gas delivery and 25
percent to the delinquency. The company must deliver the quantity of gas covered by
75 percent of the cash payment.
new text end

new text begin Subd. 3. new text end

new text begin Delivery charge. new text end

new text begin A gas company may not charge a delivery fee, except
when a consumer requests a delivery outside of normal business hours or outside of
normally scheduled deliveries to the consumer's geographical area. No gas company may
charge an additional fee to residential delivery customers for low or minimal usage.
new text end

new text begin Subd. 4. new text end

new text begin LIHEAP participation and payments. new text end

new text begin A gas company must make
available to the general public upon request, and in all billing packets and metered fuel
tickets, information regarding LIHEAP application forms and procedures, qualification
requirements, telephone numbers, and locations at which residential customers may
submit LIHEAP applications. A gas company must accept payments from LIHEAP, shall
deliver the full amount of the fuel and any tank set fee paid for by LIHEAP funds, and
shall not require any minimum delivery fee or security deposit.
new text end

new text begin Subd. 5. new text end

new text begin Third-party credit disclosure. new text end

new text begin A gas company must not disseminate the
names of past or present delinquent consumers to competing gas companies or solicit or
use the names of competing companies' past or present delinquent consumers, except in
the course of a routine credit check performed when a prospective consumer applies
for credit privileges.
new text end