1.1                          A bill for an act 
  1.2             relating to public utilities; regulating utility 
  1.3             disconnections during cold weather; proposing coding 
  1.4             for new law in Minnesota Statutes, chapter 216B; 
  1.5             repealing Minnesota Statutes 1994, sections 216B.095; 
  1.6             and 216B.097. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [216B.101] [COLD WEATHER UTILITY 
  1.9   DISCONNECTIONS.] 
  1.10     Subdivision 1.  [APPLICABILITY.] This section applies to 
  1.11  disconnections for nonpayment of utility service, which provides 
  1.12  the primary heat source or energy source affecting the primary 
  1.13  heat source to residential dwelling units occurring during the 
  1.14  period October 15 to April 15 in any year for all occupied 
  1.15  residences.  This section applies to service provided by a 
  1.16  public utility, cooperative, or municipal utility. 
  1.17     Subd. 2.  [LOW-INCOME DISCONNECTIONS PROHIBITED.] A utility 
  1.18  may not disconnect customers whose monthly household incomes are 
  1.19  below 250 percent of the federal poverty level as provided by 
  1.20  Public Law Number 97-35, as amended. 
  1.21     Subd. 3.  [DISCONNECTION ALLOWED IN CERTAIN CIRCUMSTANCES.] 
  1.22  A utility may, subject to the requirements of this section, 
  1.23  disconnect a household whose monthly household income is above 
  1.24  250 percent of the federal poverty level, only if the 
  1.25  disconnection would not endanger the health and safety of a 
  1.26  household resident because of the infirmities of age, mental 
  2.1   retardation, other developmental or mental disabilities or like 
  2.2   infirmities incurred at any age, or the frailties associated 
  2.3   with being very young. 
  2.4      Subd. 4.  [VERIFICATION.] (a) The burden of proof that a 
  2.5   household meets the conditions for disconnection established by 
  2.6   this section is on the utility. 
  2.7      (b) The utility, as part of its filing with the public 
  2.8   utilities commission pursuant to subdivision 12, paragraph (b), 
  2.9   must include how it will verify a household's income and 
  2.10  situation. 
  2.11     Subd. 5.  [PERSONAL HOUSEHOLD CONTACT.] (a) Prior to, and 
  2.12  again at the time of disconnection of service, a utility 
  2.13  representative must meet personally with a responsible adult 
  2.14  member of the household to discover any circumstances which 
  2.15  deserve special attention, such as medical problems or 
  2.16  disabilities. 
  2.17     (b) A utility must maintain a record of all contacts with 
  2.18  the household from the time that notice of pending disconnection 
  2.19  is first given. 
  2.20     Subd. 6.  [TELEPHONE AVAILABILITY.] A utility must provide 
  2.21  its emergency after-hours telephone number to all households 
  2.22  scheduled for utility service disconnection. 
  2.23     Subd. 7.  [CUSTOMER AND OCCUPANT SERVICE 
  2.24  INFORMATION.] Prior to disconnection, a utility shall inform a 
  2.25  household of the availability of deferred payment agreements, 
  2.26  budget billing, and in the case of a noncustomer occupant, the 
  2.27  option of accepting responsibility for future bills. 
  2.28     Subd. 8.  [DEFERRED PAYMENT OFFERING.] Prior to 
  2.29  disconnecting under this section, a utility must offer a 
  2.30  deferred payment agreement to a customer or a third-party 
  2.31  agreeing to be liable.  A deferred payment agreement must 
  2.32  provide that service will not be disconnected if the customer or 
  2.33  third-party pays a reasonable amount of the outstanding bill and 
  2.34  agrees to pay the remaining outstanding balance in reasonable 
  2.35  installments.  For purposes of determining what is a reasonable 
  2.36  installment, the following factors must be considered: 
  3.1      (1) size of the delinquent account; 
  3.2      (2) customer's payment history; 
  3.3      (3) time that the debt has been outstanding; 
  3.4      (4) reasons why the debt has been outstanding; and 
  3.5      (5) any other relevant factors concerning the circumstances 
  3.6   of the customer, such as household size, income, and expenses. 
  3.7      A deferred payment agreement offered by a utility must 
  3.8   state immediately preceding the space provided for the 
  3.9   customer's signature and in bold face print at least two type 
  3.10  sizes larger than any other used thereon: 
  3.11                          "RIGHT OF APPEAL
  3.12     If you are not satisfied with this agreement, DON'T SIGN IT.
  3.13     You have the right to suggest a different payment 
  3.14  arrangement. 
  3.15     If you and the utility can't agree on terms, you can ask 
  3.16  the public utilities commission to review the disputed issues. 
  3.17     If you sign this agreement, you agree that you owe the 
  3.18  amount due under this agreement. 
  3.19     Signing this agreement does not affect your responsibility 
  3.20  to pay for your current service." 
  3.21     A delinquent amount covered by a deferred payment agreement 
  3.22  is not subject to a late payment charge if the customer meets 
  3.23  the payment schedule required by the agreement. 
  3.24     If a utility customer has not fulfilled a deferred payment 
  3.25  agreement, and there has not been a significant change in the 
  3.26  customer's ability to pay since the agreement was negotiated, 
  3.27  the utility may disconnect utility service, unless otherwise 
  3.28  prohibited from doing so by this section, and is not required to 
  3.29  negotiate a subsequent deferred payment agreement prior to 
  3.30  disconnection. 
  3.31     Payments made by a customer under a deferred payment 
  3.32  agreement must first be considered made in payment of the 
  3.33  previous account balance with any remainder credited to the 
  3.34  current bill. 
  3.35     Subd. 9.  [NOTICE OF UNACCEPTABLE PAYMENT PLAN.] If a 
  3.36  deferred payment agreement cannot be reached because the 
  4.1   customer's offer is unacceptable to the utility, the utility 
  4.2   must inform the customer in writing why the customer's offer was 
  4.3   not acceptable.  The customer may appeal the utility decision to 
  4.4   the commission. 
  4.5      Subd. 10.  [NO DISCONNECTION ON CERTAIN DAYS.] A utility 
  4.6   may not disconnect service to an occupied dwelling on a Friday, 
  4.7   Saturday, Sunday, holiday, or on a day when utility personnel 
  4.8   are not readily available to the occupant 24 hours per day to 
  4.9   negotiate restoration of service. 
  4.10     Subd. 11.  [THIRD-PARTY CONTACTS.] If a household has 
  4.11  previously requested that a specific third party be notified 
  4.12  before disconnection, a utility must contact that third party 
  4.13  prior to disconnecting service. 
  4.14     Subd. 12.  [REPORTS.] (a) The utility must report each 
  4.15  disconnection of service to an occupied dwelling, by facsimile 
  4.16  transmission, if available, or telephone to the commission by 
  4.17  3:30 p.m. the same day the disconnection takes place. 
  4.18     (b) If a utility intends to make any disconnection of 
  4.19  service to occupied dwellings under this section, it must each 
  4.20  year, prior to making any disconnections, file procedures for 
  4.21  review and receive approval by order of the commission 
  4.22  describing how it intends to identify the occupied dwellings 
  4.23  subject to disconnection.  If within 60 days of submission the 
  4.24  commission has not, by order, approved the procedures, the 
  4.25  procedures are disapproved. 
  4.26     Subd. 13.  [FOLLOW-UP VISIT.] By the end of the work day 
  4.27  following the day of disconnection, a utility must make an 
  4.28  in-person visit to the occupied dwelling to check on the 
  4.29  household's well-being and to ensure there is no danger to human 
  4.30  health and life.  A utility shall again inform the household of 
  4.31  the availability of deferred payment or budget billing 
  4.32  agreements and in the case of a noncustomer occupant, the option 
  4.33  of accepting responsibility for payment of future bills.  If a 
  4.34  utility or its representative observes a danger to human health 
  4.35  or life due to the disconnections, the utility shall immediately 
  4.36  restore service. 
  5.1      A utility must make a written record of the visit. 
  5.2      Subd. 14.  [INTERNAL PROCEDURES.] A utility must submit for 
  5.3   approval by commission order copies of its written internal 
  5.4   procedures for implementing this section and any materials used 
  5.5   in training its employees to carry out the requirements of this 
  5.6   section.  If within 60 days of submission the commission has 
  5.7   not, by order, approved the internal procedures, the procedures 
  5.8   are disapproved.  A utility must review these procedures 
  5.9   annually and update the filed procedures when appropriate.  A 
  5.10  utility which does not disconnect occupied residences for 
  5.11  nonpayment during the winter period is not required to file the 
  5.12  procedures. 
  5.13     Sec. 2.  [REPEALER.] 
  5.14     Minnesota Statutes 1994, sections 216B.095; and 216B.097, 
  5.15  are repealed.