1.1 	A bill for an act
1.2 	relating to energy; providing certain protections to residential heating customers 
1.3 	of public utilities; proposing coding for new law in Minnesota Statutes, chapter 
1.4 	216B.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [216B.099] ARREARS MANAGEMENT.
1.7 		Subdivision 1.Scope. This section applies to customers of public utilities who 
1.8 	heat with natural gas or electricity.
1.9 		Subd. 2.Definitions. For the purposes of this section, the terms defined in this 
1.10 	subdivision have the meanings given them.
1.11 	(a) "Arrears management program" means a program designed to help customers 
1.12 	repay or retire arrears.
1.13 	(b) "Assistance source" means any source of financial assistance that is paid to 
1.14 	the utility on behalf of a customer and includes, but is not limited to, funds from public 
1.15 	assistance, a charitable organization, or a fuel fund.
1.16 	(c) "Customer" means a residential customer of a public utility who is in arrears 
1.17 	and is not a LIHEAP customer.
1.18 	(d) "LIHEAP customer" means a residential customer of a public utility who is in 
1.19 	arrears and in receipt of benefits from the Low-Income Home Energy Assistance Program.
1.20 	(e) "Monthly payment" means a customer payment and includes payments from any 
1.21 	assistance source.
1.22 	(f) "Mutually agreeable payment plan" means a payment plan for LIHEAP 
1.23 	customers that:
1.24 	(1) is mutually assented to by both parties;
2.1 	(2) is based on the amount of the arrears and ability to pay, considering household 
2.2 	income and financial circumstances; and 
2.3 	(3) extends for a period of between six and 12 months.
2.4 	(g) "Personally communicated" means communicated in person or in a telephone 
2.5 	conversation.
2.6 	(h) "Utility" means a public utility, as defined in section 216B.02, subdivision 4.
2.7 		Subd. 3.Arrears management program; LIHEAP customers. On or after April 
2.8 	16 and before June 1 each year, a utility must offer to enroll a LIHEAP customer in an 
2.9 	arrears management program that:
2.10 	(1) includes a mutually agreeable payment plan;
2.11 	(2) provides that for each monthly payment made by a customer, the utility shall 
2.12 	match the payment until arrears are retired or the utility contribution reaches $500, 
2.13 	whichever comes first;
2.14 	(3) prohibits disconnection of service unless:
2.15 	(i) the utility has personally communicated an offer to the LIHEAP customer to 
2.16 	enroll in the program; and
2.17 	(ii) the LIHEAP customer has either declined or not responded to the offer; and 
2.18 	(4) permits a utility to remove a LIHEAP customer from the program upon 
2.19 	the failure to make two consecutive monthly payments, provided that, after the first 
2.20 	missed payment, the utility has personally communicated to the LIHEAP customer the 
2.21 	consequences of missing the next payment.
2.22 		Subd. 4.Arrears management program; nonLIHEAP customers. On or after 
2.23 	April 16 and before June 1 each year, a utility must offer to enroll a customer in an arrears 
2.24 	management program that:
2.25 	(1) requires the customer to submit a down payment of 20 percent of the past due 
2.26 	balance;
2.27 	(2) is structured so that the customer pays the remaining debt over a period of not 
2.28 	less than four nor more than six months, but in no event later than the billing cycle 
2.29 	beginning November 1;
2.30 	(3) prohibits disconnection of service unless:
2.31 	(i) the utility has made an offer to the customer to enroll; or
2.32 	(ii) an enrolled customer fails to comply with the terms of the program; and
2.33 	(4) permits a utility to remove a customer from the program upon the failure to 
2.34 	make a monthly payment.
2.35 		Subd. 5.Notice of arrears management program. A utility must notify its 
2.36 	customers of the availability of the arrears management program. Notification must be 
3.1 	included on past due bills and disconnection notices, must be given to all customers who 
3.2 	contact the utility about past due bills, and may include, but is not limited to, bill inserts, 
3.3 	bill messages, Web site postings, and prerecorded telephone messages.
3.4 		Subd. 6.Cost recovery. The commission shall allow recovery of the actual and 
3.5 	administrative cost of the arrears management program. Administrative costs may not 
3.6 	exceed five percent of the total program cost.
3.7 		Subd. 7.Annual report. A utility must file an annual report with the commission 
3.8 	that details:
3.9 	(1) the number of customers initially enrolled;
3.10 	(2) the number of customers making all required payments;
3.11 	(3) the number of customers terminated from the program;
3.12 	(4) the outreach methods used to notify customers of the availability of the program;
3.13 	(5) the method of applying arrears forgiveness;
3.14 	(6) the average amount of customer arrears;
3.15 	(7) the total amount of arrears forgiven; and
3.16 	(8) the total program costs minus the amount of arrears forgiven.
3.17 		Subd. 8.Customer obligation. Nothing in this section relieves a customer of the 
3.18 	obligation to pay current utility bills in full.
3.19 		Subd. 9.Continuing arrearage and budget billing programs. Nothing in this 
3.20 	section prevents a utility from combining arrearage forgiveness and budget billing 
3.21 	programs.