Office of the Revisor of Statutes

History:

17 SR 1279; 33 SR 215

Published Electronically:

October 9, 2008

7820.3800 ELECTRIC UTILITY BILLING ERRORS.

Subpart 1.

Errors warranting remedy.

When a customer has been overcharged or undercharged as a result of incorrect reading of the meter, incorrect application of rate schedule, incorrect connection of the meter, application of an incorrect multiplier or constant or other similar reasons, the amount of the overcharge shall be refunded to the customer or the amount of the undercharge may be billed to the customer as detailed in subparts 2 through 4.

Subp. 2.

Remedy for overcharge.

When a utility has overcharged a customer, the utility shall calculate the difference between the amount collected for service rendered and the amount the utility should have collected for service rendered, plus interest, for the period beginning three years before the date of discovery. Interest must be calculated as prescribed by Minnesota Statutes, section 325E.02, paragraph (b). If the recalculated bills indicate that more than $1 is due an existing customer or $2 is due a person no longer a customer of the utility, the full amount of the calculated difference between the amount paid and the recalculated amount shall be refunded to the customer. The refund to an existing customer may be in cash or credit on a bill. Credits shall be shown separately and identified. If a refund is due a person no longer a customer of the utility, the utility shall mail to the customer's last known address either the refund or a notice that the customer has three months in which to request a refund from the utility.

Subp. 3.

Remedy for undercharge.

When a utility has undercharged a customer, the utility shall calculate the difference between the amount collected for service rendered and the amount the utility should have collected for service rendered, for the period beginning one year before the date of discovery. If the recalculated bills indicate that the amount due the utility exceeds $10, the utility may bill the customer for the amount due. But a utility must not bill for any undercharge incurred after the date of a customer inquiry or complaint if the utility failed to begin investigating the matter within a reasonable time and the inquiry or complaint ultimately resulted in the discovery of the undercharge. The first billing rendered shall be separated from the regular bill and the charges explained in detail.

Subp. 4.

Exception if error date known.

If the date the error occurred can be fixed with reasonable certainty, the remedy shall be calculated on the basis of payments for service rendered after that date, but in no event for a period beginning more than three years before the discovery of an overcharge or one year before the discovery of an undercharge.

Statutory Authority:

History:

33 SR 215

Published Electronically:

October 9, 2008

ADJUSTMENT OF GAS BILLS

7820.3900 INACCURATE NATURAL GAS METERS.

Subpart 1.

Meter too fast or too slow.

Whenever any meter is found upon test to have an average error of more than two percent fast, the utility shall refund to the customer the overcharge. Whenever any meter is found upon test to have an average error of more than two percent slow, the utility may charge for the gas consumed but not included in bills previously rendered. The refund or charge for both the fast and slow meter shall be based on the corrected meter reading for a period equal to one-half the time elapsed since the last previous test, but not to exceed six months, unless it can be established that the error was due to some cause, the date of which can be fixed with reasonable certainty, in which case the refund or charge shall be computed from that date, but in no event for a period longer than one year. The average error for a meter tested shall be defined as one-half the algebraic sum of the error at full-rated flow plus the error at check flow.

Subp. 2.

Meter fails to register or registers intermittently.

When the average error cannot be determined by test because the meter is not found to register or is found to register intermittently, the utility may charge for an estimated amount of gas used, which shall be calculated by averaging the amounts registered over corresponding periods in previous years or in the absence of such information, over similar periods of known accurate measurement preceding or subsequent thereto, but in no event shall such charge be for a period longer than one year.

Subp. 3.

Recalculation of bill.

Subp. 4.

Failure to check faulty meter.

Statutory Authority:

History:

17 SR 1279; 33 SR 215

Published Electronically:

October 9, 2008

7820.4000 NATURAL GAS UTILITY BILLING ERRORS.

Subpart 1.

Errors warranting remedy.

Subp. 2.

Remedy for overcharge.

When a utility has overcharged a customer, the utility shall calculate the difference between the amount collected for service rendered and the amount the utility should have collected for service rendered, plus interest, for the period beginning three years before the date of discovery. Interest must be calculated as prescribed by Minnesota Statutes, section 325E.02, paragraph (b). If the recalculated bills indicate that more than $1 is due an existing customer or $2 is due a person no longer a customer of the utility, the full amount of the calculated difference between the amount paid and the recalculated amount shall be refunded to the customer. The refund to an existing customer may be in cash or as credit on a bill. Credits shall be shown separately and identified. If a refund is due a person no longer a customer of the utility, the utility shall mail to the customer's last known address either the refund or a notice that the customer has three months in which to request a refund from the utility.

Subp. 3.

Remedy for undercharge.

Subp. 4.

Exception if error date known.

Statutory Authority:

History:

33 SR 215

Published Electronically:

October 9, 2008

DEPOSIT AND GUARANTEE REQUIREMENTS; TECHNICAL TERMS

7820.4100 TERMS DEFINED BY COMMISSION TECHNICAL STANDARDS.

For the purposes of this chapter the following terms will be those as defined in the technical standards, Public Utilities Commission: average error, creeps and/or creeping, improper voltage, 100 percent accuracy, test, working test standard.

Statutory Authority:

MS s 216B.08; 216B.09

Published Electronically:

October 9, 2008

7820.4200 GUARANTEE OF PAYMENT.

The utility shall not require deposit or guarantee of any customer or applicant for service who has established good credit. Deposit or guarantee of payment requirements as prescribed by the utility must be based upon standards which bear a reasonable relationship to the assurance of payment.

Statutory Authority:

Published Electronically:

October 9, 2008

7820.4300 NEW SERVICE.

"New service" means service extended to or requested by any customer who has not received service as a customer for the preceding six months. A utility shall not require a cash deposit or other guarantee of payment as a condition of obtaining new service unless a customer has an unsatisfactory credit or service standing with the utility due to any of the following:

A.

the customer or applicant has outstanding a prior utility service account with the utility which at the time of request for service remains unpaid and not in dispute;

B.

the service of a customer or applicant has previously been disconnected for any permissible reason which is not in dispute; or

C.

the credit history as provided in this chapter demonstrates that payment cannot be assured. The determination of an adequate credit history must be determined by objective criteria which shall be filed with the commission in the utility's tariff. Such criteria must bear a reasonable relationship to the assurance of payment.

Statutory Authority:

Published Electronically:

October 9, 2008

7820.4400 EXISTING SERVICE.

"Existing service" means service presently being extended to a customer or which has been extended to a customer within the past six months. A utility shall not require a cash deposit or other guarantee of payment as condition of continuing existing service unless a customer has an unsatisfactory credit or service standing with the utility due to either of the following:

A.

the service of the customer has been disconnected or has been liable for disconnect for nonpayment of a bill which is not in dispute; or

B.

the service of a customer has been disconnected or has been liable for disconnect for any permissible reason which is not in dispute.

Statutory Authority:

Published Electronically:

October 9, 2008

7820.4500 WHEN PAYMENT GUARANTEE PERMISSIBLE.

Subpart 1.

Deposit.

When required, a customer may assure payment by submitting a deposit. A deposit shall not exceed an estimated two months' gross bill or existing two months' bill where applicable. All deposits shall be in addition to payment of an outstanding bill or a part of such bill as has been resolved to the satisfaction of the utility except where such bill has been discharged in bankruptcy. Interest shall be paid on deposits in excess of $20 at the rate of six percent per year compounded annually. Interest on deposits shall be payable from the date of deposit to the date of refund or disconnection. The utility may, at its option, pay the interest at intervals it chooses but at least annually, by direct payment, or as a credit on bills. The deposit shall be refunded to the customer after 12 consecutive months of prompt payment of all utility bills. The utility may, at its option, refund the deposit by direct payment or as a credit on the bill. With notice any deposit of a customer may be applied by the utility to a bill when the bill has been determined by the utility to be delinquent. Upon termination of service, the deposit with accrued interest shall be credited to the final bill and the balance shall be returned within 45 days to the customer.

A utility shall not require a deposit of any customer without explaining in writing why that deposit or guarantee is being required and under what conditions, if any, the deposit will be diminished upon return. Each utility shall issue a receipt of deposit to each customer from whom a deposit is received and shall provide means whereby a depositor may establish claim if the receipt is unavailable.

Subp. 2.

Guarantee of payment.

The utility may accept, in lieu of a deposit, a contract signed by a guarantor satisfactory to the utility whereby payment of a specified sum not exceeding the deposit requirement is guaranteed. The term of such contract shall be for no longer than 12 months, but shall automatically terminate after the customer has closed and paid the customer's account with the utility, or at the guarantor's request upon 60 days' written notice to the utility. Upon termination of a guarantee contract or whenever the utility deems same insufficient as to amount or surety, a cash deposit or a new or additional guarantee may be required for good cause upon reasonable written notice to the customer. The service of any customer who fails to comply with these requirements may be disconnected upon notice as prescribed in part 7820.2400. The utility shall mail the guarantor copies of all disconnect notices sent to the customer whose account the grantor has guaranteed unless the guarantor waives such notice in writing.

Statutory Authority:

History:

17 SR 1279

Published Electronically:

October 9, 2008

7820.4600 GOOD CREDIT.

The utility may determine whether a customer has established good credit with the utility, except as herein restricted: A customer, who within the last 12 months has not had service disconnected for nonpayment of a bill and has not been liable for disconnect for nonpayment of a bill which is not in dispute, shall be deemed to have established good credit.

Statutory Authority:

History:

17 SR 1279

Published Electronically:

October 9, 2008

7820.4700 WHEN DEPOSIT OR PAYMENT GUARANTEE IMPERMISSIBLE.

A utility shall not require a deposit or a guarantee of payment based upon income, home ownership, residential location, employment tenure, nature of occupation, race, color, creed, sex, marital status, age, national origin, or any other criterion which does not bear a reasonable relationship to the assurance of payment of which is not authorized by this chapter. No utility shall use any credit reports other than those reflecting the purchase of utility services to determine the adequacy of a customer's credit history without the permission in writing of a customer. Any credit history so used shall be mailed to the customer in order to provide the customer an opportunity to review the data. Refusal of a customer to permit use of a credit rating or credit service other than that of a utility shall not affect the determination of the utility as to that customer's credit history.

Statutory Authority:

Published Electronically:

October 9, 2008

PUBLIC ACCESS TO INFORMATION

7820.4800 INFORMATION AVAILABLE TO CUSTOMERS AND PUBLIC.

The utility shall retain customer billing, complaint, payment, and deposit records for the length of time necessary to permit the utility to comply with the commission's rules; provided the utility shall retain these records for not less than three years. A customer's own billing, complaint, payment, and deposit records shall be available to that customer.

Each utility shall have available for existing customers and applicants for service such information as is needed to obtain and maintain adequate, timely, and efficient service.

Each utility shall furnish additional information as the customer may reasonably request.

Statutory Authority:

MS s 216B.08; 216B.09

Published Electronically:

October 9, 2008

7820.4900 EMERGENCY INFORMATION.

Each utility, for every municipality in which it serves, shall provide in the respective telephone directories a telephone listing by which the utility can be notified during a 24-hour day of any utility service deficiency or emergency which may exist.

Statutory Authority:

MS s 216B.08; 216B.09

Published Electronically:

October 9, 2008

DELINQUENCY CHARGES

7820.5100 DEFINITIONS.

Subpart 1.

Scope.

The terms used in parts 7820.5100 to 7820.5600 have the meanings given them in this part.

Subp. 2.

Delinquent amount.

"Delinquent amount" means the portion of a customer's account representing charges for utility service or services past due. In the case of a residential customer on either a budget billing plan or a payment schedule, "delinquent amount" means the lesser of the outstanding account balance or the outstanding scheduled payments.

Subp. 3.

Late payment charge.

"Late payment charge" means the allowable charge a utility may impose upon a delinquent amount.

Subp. 4.

Utility.

"Utility" means a public utility as defined in Minnesota Statutes, section 216B.02, as modified by Minnesota Statutes, sections 216B.025 and 216B.026.

Subp. 5.

Residential customer.

"Residential customer" means a customer of a utility whose principal use of gas or electricity is for household purposes such as lighting, cooking, water heating, and space heating in space occupied as living quarters. Utility service is normally supplied through a single meter to a single family dwelling unit, but apartments or other subdivided dwelling units may be classified as residential even though several individual units take service through the same meter.

Statutory Authority:

History:

8 SR 2335

Published Electronically:

October 9, 2008

7820.5200 BILLING TERMS.

A utility shall designate any late payment charge imposed on a customer as a late payment charge on that customer's bill. Other terms, including "penalties," "discounts," or "net-gross rate differentials," must not be used to indicate any charge which results from delinquent payment.

Statutory Authority:

History:

8 SR 2335

Published Electronically:

October 9, 2008

7820.5300 DETERMINATION OF DELINQUENCY.

Subpart 1.

Requirement.

A utility which chooses to impose a late payment charge on its customers shall use two measures for determining when a customer's bill is delinquent as follows in subparts 2 and 3.

Subp. 2.

Residential customer.

If a residential customer's bill payment is not received by the utility by the next scheduled billing date, which must be not less than 25 days from the current billing date, a late payment charge may be imposed. The current billing date must be no more than three working days before the date of mailing of the bill by the utility. The utility may print a due date on the bill which is not more than five days before the next scheduled billing date.

Subp. 3.

Nonresidential customer.

If a nonresidential customer's utility bill is not received by the utility within a grace period of not less than 15 days from the current billing date, a late payment charge may be imposed. The current billing date must be no more than three working days before the date of mailing of the bill by the utility.

Statutory Authority:

History:

8 SR 2335

Published Electronically:

October 9, 2008

7820.5400 REQUIREMENTS FOR IMPOSING LATE PAYMENT CHARGE.

Subpart 1.

Compliance.

Before a utility may impose a late payment charge, the utility shall comply with the requirements in subparts 2 to 5.

Subp. 2.

Tariffs.

The utility shall file and have approved by the commission tariffs providing for the late payment charge and specifying the terms and conditions of the late payment charge. The filing must include substantiating documents and exhibits supporting the finance fee and grace periods proposed.

Subp. 3.

Bill content.

The utility shall clearly indicate upon each bill the terms and conditions of the late payment charge, including the date after which the late payment charge is applied, the amount of the late payment charge after the charge is actually applied, and the monthly and the annual percentage rate of the late payment charge.

Subp. 4.

Uniformity.

The utility shall administer its late payment charge in a nondiscriminatory manner.

Subp. 5.

Implementation.

By August 7, 1984, the utility shall comply with the tariff, bill content, and uniformity requirements of subparts 2 to 4.

Statutory Authority:

History:

8 SR 2335

Published Electronically:

October 9, 2008

7820.5500 AMOUNT OF LATE PAYMENT CHARGE.

Subpart 1.

Calculation.

A late payment charge imposed by a utility must be calculated as follows in subparts 2 to 4.

Subp. 2.

Minimum delinquent amount.

The utility shall not assess a late payment charge until the delinquent amount exceeds $10.

Subp. 3.

Finance fee.

The utility may impose a finance fee no greater than 1-1/2 percent per monthly billing period on the delinquent amount.

Subp. 4.

Minimum finance fee.

The utility may impose a minimum finance fee no greater than $1.

Statutory Authority:

History:

8 SR 2335

Published Electronically:

October 9, 2008

7820.5600 CREDITING OF PAYMENTS.

The utility shall credit all payments received against the oldest outstanding account balance before the application of any late payment charge.

Statutory Authority: