SF 2799

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to energy; providing certain protections to residential heating customers
of public utilities; 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.099] ARREARS MANAGEMENT.
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new text begin new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin This section applies to customers of public utilities who
heat with natural gas or electricity.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
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new text begin (a) "Arrears management program" means a program designed to help customers
repay or retire arrears.
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new text begin (b) "Assistance source" means any source of financial assistance that is paid to
the utility on behalf of a customer and includes, but is not limited to, funds from public
assistance, a charitable organization, or a fuel fund.
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new text begin (c) "Customer" means a residential customer of a public utility who is in arrears
and is not a LIHEAP customer.
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new text begin (d) "LIHEAP customer" means a residential customer of a public utility who is in
arrears and in receipt of benefits from the Low-Income Home Energy Assistance Program.
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new text begin (e) "Monthly payment" means a customer payment and includes payments from any
assistance source.
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new text begin (f) "Mutually agreeable payment plan" means a payment plan for LIHEAP
customers that:
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new text begin (1) is mutually assented to by both parties;
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new text begin (2) is based on the amount of the arrears and ability to pay, considering household
income and financial circumstances; and
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new text begin (3) extends for a period of between six and 12 months.
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new text begin (g) "Personally communicated" means communicated in person or in a telephone
conversation.
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new text begin (h) "Utility" means a public utility, as defined in section 216B.02, subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Arrears management program; LIHEAP customers. new text end

new text begin On or after April
16 and before June 1 each year, a utility must offer to enroll a LIHEAP customer in an
arrears management program that:
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new text begin (1) includes a mutually agreeable payment plan;
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new text begin (2) provides that for each monthly payment made by a customer, the utility shall
match the payment until arrears are retired or the utility contribution reaches $500,
whichever comes first;
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new text begin (3) prohibits disconnection of service unless:
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new text begin (i) the utility has personally communicated an offer to the LIHEAP customer to
enroll in the program; and
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new text begin (ii) the LIHEAP customer has either declined or not responded to the offer; and
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new text begin (4) permits a utility to remove a LIHEAP customer from the program upon
the failure to make two consecutive monthly payments, provided that, after the first
missed payment, the utility has personally communicated to the LIHEAP customer the
consequences of missing the next payment.
new text end

new text begin Subd. 4. new text end

new text begin Arrears management program; nonLIHEAP customers. new text end

new text begin On or after
April 16 and before June 1 each year, a utility must offer to enroll a customer in an arrears
management program that:
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new text begin (1) requires the customer to submit a down payment of 20 percent of the past due
balance;
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new text begin (2) is structured so that the customer pays the remaining debt over a period of not
less than four nor more than six months, but in no event later than the billing cycle
beginning November 1;
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new text begin (3) prohibits disconnection of service unless:
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new text begin (i) the utility has made an offer to the customer to enroll; or
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new text begin (ii) an enrolled customer fails to comply with the terms of the program; and
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new text begin (4) permits a utility to remove a customer from the program upon the failure to
make a monthly payment.
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new text begin Subd. 5. new text end

new text begin Notice of arrears management program. new text end

new text begin A utility must notify its
customers of the availability of the arrears management program. Notification must be
included on past due bills and disconnection notices, must be given to all customers who
contact the utility about past due bills, and may include, but is not limited to, bill inserts,
bill messages, Web site postings, and prerecorded telephone messages.
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new text begin Subd. 6. new text end

new text begin Cost recovery. new text end

new text begin The commission shall allow recovery of the actual and
administrative cost of the arrears management program. Administrative costs may not
exceed five percent of the total program cost.
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new text begin Subd. 7. new text end

new text begin Annual report. new text end

new text begin A utility must file an annual report with the commission
that details:
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new text begin (1) the number of customers initially enrolled;
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new text begin (2) the number of customers making all required payments;
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new text begin (3) the number of customers terminated from the program;
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new text begin (4) the outreach methods used to notify customers of the availability of the program;
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new text begin (5) the method of applying arrears forgiveness;
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new text begin (6) the average amount of customer arrears;
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new text begin (7) the total amount of arrears forgiven; and
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new text begin (8) the total program costs minus the amount of arrears forgiven.
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new text begin Subd. 8. new text end

new text begin Customer obligation. new text end

new text begin Nothing in this section relieves a customer of the
obligation to pay current utility bills in full.
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new text begin Subd. 9. new text end

new text begin Continuing arrearage and budget billing programs. new text end

new text begin Nothing in this
section prevents a utility from combining arrearage forgiveness and budget billing
programs.
new text end