§ 56.1. Statement of purpose and policy.

 This chapter establishes and enforces uniform, fair and equitable residential utility service standards governing eligibility criteria, credit and deposit practices, and account billing, termination and customer complaint procedures. This chapter assures adequate provision of residential utility service, to restrict unreasonable termination of or refusal to provide that service and to provide functional alternatives to termination or refusal to provide that service. Every privilege conferred or duty required by this chapter imposes an obligation of good faith, honesty and fair dealing in its performance and enforcement. This chapter will be liberally construed to fulfill its purpose and policy and to insure justice for all concerned.

   The provisions of this §  56.1 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

   Retail Services

 The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:

   Account balance—The amount of current service which has been properly billed in addition to any accrued arrearages.

   Applicant—A person who applies for residential utility service. The term does not include a person who, within 60 days after termination or discontinuance of service, seeks to transfer service within the service territory of the same utility or to reinstate service at the same address.

   Billing month—A period of not less than 26 and not more than 35 days except in the following circumstances:

     (i) An initial bill for a new ratepayer may be less than 26 days or greater than 35 days. However, if an initial bill exceeds 60 days the ratepayer shall be given the opportunity to amortize the amount over a period equal to the period covered by the initial bill without penalty.

     (ii) A final bill due to discontinuance may be less than 26 days or greater than 35 days but may never exceed 42 days. In cases involving termination, a final bill may be less than 26 days.

     (iii) In addition, bills for less than 26 days or more than 35 days shall be permitted if they result from a rebilling initiated by the company or customer dispute to correct a billing problem.

   Billing period—In the case of public utilities supplying gas, electric and steam heating service, the billing period shall conform to the definition of a billing month; in the case of water and wastewater service, a billing period may be monthly, bimonthly or quarterly as provided in the tariff of the utility. Ratepayers shall be permitted to receive bills monthly and shall be notified of their rights thereto.

   Cycle billing—A system of billing employed by a utility which results in the normal rendition of bills for utility service to a group or portion of ratepayers on different or specified days of one billing period.

   Delinquent account—Charges for utility service which have not been paid in full by the due date stated on the bill or otherwise agreed upon; provided that an account may not be deemed delinquent if: prior to the due date, a payment or settlement agreement with the utility has been entered into by the ratepayer, a timely filed notice of dispute is pending before the utility, or, under time limits provided in this chapter, an informal or formal complaint is timely filed with and is pending before the Commission.

   Discontinuation of service—The cessation of service with the consent of the ratepayer and otherwise in accordance with §  56.72 (relating to discontinuation of service).

   Dispute—A grievance of an applicant, ratepayer or occupant about a utility’s application of a provision covered by this chapter, including subjects such as credit determinations, deposit requirements, the accuracy of meter readings or bill amounts or the proper party to be charged. If, at the conclusion of an initial contact or, when applicable, a follow-up response, the applicant, ratepayer or occupant indicates satisfaction with the resulting resolution or explanation, the contact will not be considered a dispute.

   Dwelling—A house, apartment, mobile home or single meter multiunit structure being supplied with residential service.

   Emergency—An unforeseen combination of circumstances requiring temporary discontinuance of service in order to effect repairs or maintenance or to eliminate an imminent threat to life, health, safety or property.

   Initial inquiry—A concern or question of an applicant, ratepayer or occupant about a utility’s application of a provision covered by this chapter, including subjects such as credit determinations, deposit requirements, the accuracy of meter readings or bill amounts or the proper party to be charged. If a utility, with the consent of the applicant, ratepayer or occupant, offers to review pertinent records and call back the applicant, ratepayer or occupant within 3 business days with a response, the contact will be considered an initial inquiry pending a determination of satisfaction by the applicant, ratepayer or occupant with the company’s response. If the company cannot reach the customer to convey the information obtained through a review of company records, a letter shall be sent which summarizes the information and informs the customer to contact the company within 5 business days if the customer disagrees with the company position, or has additional questions or concerns about the matter.

   Notice or termination notice—A written statement which, in conspicuous print, clearly and fully includes the following information when applicable:

     (i) The reason for the proposed termination.

     (ii) An itemized statement of accounts currently due, including any required deposit.

     (iii) A statement that a specific reconnection fee will be required to have service restored after it has been terminated if a reconnection fee is a part of the tariff of the utility on file with the Commission.

     (iv) The date on or after which service will be terminated unless: payment in full is received, the grounds for termination are otherwise eliminated, a settlement or payment agreement is entered or a dispute is filed with the utility or the Commission.

     (v) A statement that the ratepayer should immediately contact the utility to attempt to resolve the matter, including the address and telephone number where questions may be filed and payment and settlement agreements entered into with the utility.

     (vi) The following statement: ‘‘If, AFTER discussing your problem with the Utility you remain dissatisfied, you may file an informal complaint with the Public Utility Commission. TO AVOID TERMINATION OF SERVICE PENDING RESOLUTION OF A DISPUTE THIS INFORMAL COMPLAINT MUST BE FILED BEFORE THE PROPOSED DATE FOR TERMINATION OF YOUR SERVICE. You may file an informal complaint by telephoning the Public Utility Commission at 1 (800) 692-7380 or by writing to the following address Public Utility Commission, Box 3265, Harrisburg, Pennsylvania 17120.’’

     (vii) A serious illness notice substantially in compliance with the form as set forth in Appendix A (relating to medical emergency notice) except that, for the purpose of §  56.96 (relating to post-termination notice), the notice shall substantially comply with the form as set forth in Appendix B (relating to medical emergency notice).

   Occupant—A person who resides in the premises to which utility service is provided.

   Payment agreement—A mutually satisfactory written agreement whereby a ratepayer or applicant who admits liability for billed service is permitted to amortize or pay the unpaid balance of the account in one or more payments over a reasonable period of time.

   Person—An individual, partnership, corporation, association, including any lessee, assignee, trustee, receiver, executor, administrator and other successors in interest.

   Physician—An individual licensed under the laws of the Commonwealth to engage in the practice of medicine and surgery in all of its branches within the scope of the Medical Practice Act of 1974 (63 P. S. § §  421.1—421.18) relating to medicine and surgery as amended, or in the practice of osteopathy or osteopathic surgery within the scope of the Osteopathic Medical Practice Act (63 P. S. § §  271.1—271.18).

   Premises or affected premises—Unless otherwise indicated, the residence of the occupant.

   Ratepayer—A person in whose name a residential service account is listed and who is primarily responsible for payment of bills rendered for the service. For the purposes of establishing credit, this term includes a transfer of service from a residence or dwelling within the service area of the utility or a reinstitution of service at the same location within 60 days following termination or discontinuance of service.

   Remote reading device—A device which by electrical impulse or otherwise transmits readings from a meter, excluding devices that permit direct interrogation of the meter, usually located within a residence, to a more accessible location outside of a residence.

   Residential service—Utility service supplied to a dwelling, including service provided to a commercial establishment if concurrent service is provided to a residential dwelling attached thereto. Utility service provided to a hotel or motel is not considered residential service.

   Settlement agreements—A mutually satisfactory settlement of a claim or dispute, reduced to writing and signed by the parties or their representatives. The settlement agreement offered by a utility shall state, immediately preceding the space provided for the name of the ratepayer and in boldface print at least two point sizes larger than any other used thereon: ‘‘If you are not satisfied with this agreement, do not sign it. You may file an informal complaint before the Public Utility Commission without making yourself subject to retaliation by the Utility. If you do sign this agreement, you may give up your right to a hearing before the Commission on any matter involved in this dispute except the utility’s failure to follow the terms of this agreement.’’

   Termination of service—Cessation of service, whether temporary or permanent, without the consent of the ratepayer.

   Unauthorized use of utility service—Unreasonable interference or diversion of service, including meter tampering (any act which affects the proper registration of service through a meter), by-passing (unmetered service that flows through a device connected between a service line and customer-owned facilities), and unauthorized service restoral.

   Utility—A public utility or a municipality, subject to Commission jurisdiction, which provides electric, gas, steam heat, wastewater or water service.

   The provisions of this §  56.2 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 504—505, 1301 and 1501.

   The provisions of this §  56.2 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended September 22, 1978, effective September 23, 1978, 8 Pa.B. 2632; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended February 28, 1986, effective March 1, 1986, 16 Pa. B. 597; amended February 13, 1998, effective February 14, 1998, 28 Pa.B. 801; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (244812) to (244813) and (241281) to (241283).

   The utility did not improperly require customers to talk to the utility before filing a complaint with the Pennsylvania Public Utility Commission, where the regulations require the public utilities to attempt to resolve a dispute with a customer before any informal or formal complaint is filed with the Pennsylvania Public Utility Commission, and where the language used by the utility in its billing statement complied with 52 Pa. Code §  56.2. Aronson v. Pennsylvania Public Utility Commission, 740 A.2d 1208 (Pa. Cmwlth. 1999); appeal denied 751 A.2d 193 (Pa. 2000).

   This section cited in 52 Pa. Code §  55.115 (relating to coordination with other regulations); 52 Pa. Code §  56.91 (relating to general notice provisions); 52 Pa. Code §  75.12 (relating to definitions); 52 Pa. Code §  56.140 (relating to follow-up response to inquiry); and 52 Pa. Code §  56.164 (relating to termination pending resolution of the dispute).

Subchapter B. BILLING AND PAYMENT STANDARDS

BILLING

Sec.

§ 56.11. Billing frequency.

 A utility shall render a bill once every billing period to every residential ratepayer in accordance with approved rate schedules.

   The provisions of this §  56.11 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

 Except as provided in this section, a utility shall render bills based on actual meter readings by utility company personnel.

   (1)  Inapplicability to seasonally billed ratepayers. This section does not apply to ratepayers billed on a seasonal basis under terms included in the tariff of the utility.

   (2)  Estimates for bills rendered on a monthly basis. If a utility bills on a monthly basis, it may estimate usage of service every other billing month, so long as the utility provides a ratepayer with the opportunity to read the meter and report the quantity of usage in lieu of the estimated bill. The resulting bills shall be based on the information provided, except for an account where it is apparent that the information is erroneous.

     (i)   Upon the request of the ratepayer, the utility shall, at least annually, provide preaddressed postcards on which the ratepayer may note the reading. The utility shall provide additional preaddressed postcards on request.

     (ii)   The utility may establish due dates by which the postcards shall be received for a bill to be based upon the meter reading of the ratepayer or occupant. If the reading of a ratepayer is not received by that due date, the utility may estimate the quantity of usage.

   (3)  Estimates permitted under exigent circumstances. A utility may estimate the bill of a ratepayer if extreme weather conditions, emergencies, equipment failure, work stoppages or other circumstances prevent actual meter reading.

   (4)  Estimates when utility personnel are unable to gain access. A utility may estimate the bill of a ratepayer if utility personnel are unable to gain access to obtain an actual meter reading, as long as the following apply:

     (i)   The utility has undertaken reasonable alternative measures to obtain a meter reading, including, but not limited to, the provision of preaddressed postcards upon which the ratepayer may note the reading or the telephone reporting of the reading.

     (ii)   The utility, at least every 6 months, or every four billing periods for utilities permitted to bill for periods in excess of 1 month, obtains an actual meter reading or ratepayer supplied reading to verify the accuracy of the estimated readings.

     (iii)   The utility, at least once every 12 months, obtains an actual meter reading to verify the accuracy of the readings, either estimated or ratepayer read.

   (5)  Remote reading devices for water, gas and electric utilities. A utility may render a bill on the basis of readings from a remote reading device under the following conditions:

     (i)   When a gas, electric or water utility uses readings from a remote reading device to render bills, the utility shall obtain an actual meter reading at least once every 5 years to verify the accuracy of the remote reading device. If the ratepayer of record at the dwelling changes during the 5-year period between actual meter readings, the utility shall make a bona fide attempt to schedule an appointment with the departing ratepayer and, if necessary, the new occupant, to secure an actual meter reading.

     (ii)   When the actual meter reading establishes that the customer was underbilled due to an error in the registration of the remote reading device, the utility may render a bill for the uncollected amount. If the rebilling exceeds the otherwise normal estimated bill by at least 50% and at least $50, the utility shall comply with §  56.14 (relating to previously unbilled utility service).

     (iii)   When the actual meter reading establishes that the customer was overbilled due to an error in the readings of the remote reading device, the utility shall credit or refund to the customer the amount overbilled plus interest calculated under §  56.181(3) (relating to duties of parties; disputing party’s duty to pay undisputed portion of bills; utility’s duty to pay interest whenever overpayment found).

     (iv)   Nothing in this section may be construed to limit the authority of electric, gas or water utilities to gain access to a residence for the purpose of checking or reading a meter.

   (6)  Limitation of liability. If a water company has estimated bills and if the ratepayer or occupant during that period has consumed an amount of water in excess of normal seasonal usage because of a verified leak that could not reasonably have been detected or other unknown loss of water, the ratepayer is not liable for more than 150% of the average amount of water consumed for the corresponding period during the previous year. This section does not apply when the water utility was unable to gain access and has complied with paragraph (4).

   (7)  Equal monthly billing. A gas, electric and steam heating utility shall provide its residential ratepayers with an optional billing procedure which averages estimated utility service costs over a 10-month, 11-month or 12-month period to eliminate, to the extent possible, seasonal fluctuations in utility bills. The utility shall review accounts at least three times during the optional billing period.

   (8)  Notice. The utility shall inform existing ratepayers of their rights under this section and under 66 Pa.C.S. §  1509 (relating to billing procedures).

   The provisions of this §  56.12 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 504—506, 1301 and 1501.

   The provisions of this §  56.12 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended February 28, 1986, effective March 1, 1986, 16 Pa.B. 597; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (241284) and (205725) to (205726).

   Service

   Failure by a condominium to pay sales taxes for electricity and steam is not one of the enumerated reasons to permit a utility company to terminate service. Philadelphia Electric Company v. Department of Revenue, 538 A.2d 607 (Pa. Cmwlth. 1988).

   Sales Tax

   By requiring public utilities to prepay sales taxes for its nonresidential customers and then write off as a bad debt any such taxes it cannot collect from the customer, the Legislature did not violate equal protection. Philadelphia Electric Company v. Department of Revenue, 538 A.2d 607 (Pa. Cmwlth. 1988).

 Charges for other than basic service—that is, merchandise, appliances and special services, including merchandise and appliance installation, sales, rental and repair costs; meter testing fees; line extension costs; special construction charges, and other nonrecurring charges, except as provided in this chapter—shall appear on a separate bill.

   When a utility renders a make-up bill for previously unbilled utility service resulting from utility billing error, meter failure, leakage that could not reasonably have been detected or loss of service, or four or more consecutive estimated bills and the make-up bill exceeds the otherwise normal estimated bill by at least 50% and at least $50:

   (1)  The utility shall review the bill with the ratepayer and make a reasonable attempt to enter into a payment agreement.

   (2)  The period of the payment agreement may, at the option of the ratepayer, extend at least as long as:

     (i)   The period during which the excess amount accrued.

     (ii)   Necessary so that the quantity of service billed in any one billing period is not greater than the normal estimated quantity for that period plus 50%.

   The provisions of this §  56.14 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.14 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (205726) to (205727).

 A bill rendered by a utility for metered residential utility service shall state clearly the following information:

   (1)  The beginning and ending dates of the billing period.

   (2)  If applicable, the beginning and ending meter readings for the billing period. If a bill is estimated, it shall contain a clear and conspicuous marking of the word ‘‘Estimated.’’

   (3)  The due date on or before which payment shall be made or the account will be delinquent.

   (4)  The amount due for service rendered during the current billing period, specifying the charge for basic service, the energy or fuel adjustment charge, State tax adjustment surcharge if other than zero, State sales tax if applicable and other similar charges. The bills should also indicate that a State gross receipts tax is being charged and a reasonable estimate of the charge. A Class A utility shall include a statement of the dollar amount of total State taxes included in the current billing period charge. For the purpose of this paragraph, a Class A utility shall also include a Class A telephone utility as defined under §  63.31 (relating to classification of public utilities).

   (5)  Amounts due for reconnection charges.

   (6)  Amounts due for security deposits.

   (7)  The total amount of payments and other credits made to the account during the current billing period.

   (8)  The amount of late payment charges, designated as such, which have accrued to the account of the ratepayer for failure to pay bills by the due date of the bill and which are authorized under §  56.22 (relating to accrual of late payment charges).

   (9)  The total amount due.

   (10)  A clear and conspicuous marking of estimates.

   (11)  A statement directing the ratepayer to ‘‘register any question or complaint about the bill prior to the due date,’’ with the address and telephone number where the ratepayer may initiate the inquiry or complaint with the utility.

   (12)  A statement that a rate schedule, an explanation of how to verify the accuracy of a bill and an explanation of the various charges, if applicable, is available for inspection in the local business office of the utility.

   (13)  A designation of the applicable rate schedule as denoted in the officially filed tariff of the utility.

   The provisions of this §  56.15 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 1301, 1302, 1504 and 1509.

   The provisions of this §  56.15 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended January 8, 1988, effective January 9, 1988, 18 Pa.B. 185. Immediately preceding text appears at serial pages (82128) to (82129).

 (a)  A ratepayer who is about to vacate premises supplied with utility service or who wishes to have service discontinued shall give at least 7 days notice to the utility and a nonratepayer occupant, specifying the date on which it is desired that service be discontinued. In the absence of a notice, the ratepayer shall be responsible for services rendered.

 (b)  In the event of discontinuance or termination of service at a residence or dwelling in accordance with this chapter, a utility may transfer an unpaid balance to a new residential service account of the same ratepayer.

 (c)  If a termination notice has been issued in accordance with §  56.91 (relating to general notice provisions) and subsequent to the mailing or delivery of a notice, a ratepayer requests a transfer of service to a new location, the termination process as set forth in § §  56.91—56.99 may continue at the new location.

   (1)  In the event that notifications set forth under §  56.91 and §  56.95 (relating to deferred termination when no prior contact) have been rendered and service has not been terminated due to a denial of access to the premises, the utility may deny service at a new location when a service transfer is requested.

   (2)  Nothing in this section shall be construed to limit the right of a ratepayer to dispute a bill within the meaning of § §  56.141—56.143.

 (d)  In the event of a termination of service to a residential ratepayer, a utility may transfer to the account of a third-party guarantor any portion of the unpaid balance which is equivalent to the cash deposit requirement of the ratepayer.

   The provisions of this §  56.16 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

 Payments may be required in advance of furnishing any of the following services:

   (1)  Seasonal service.

   (2)  The construction of facilities and furnishing of special equipment.

   (3)  Gas and electric rendered through prepayment meters provided:

     (i)   The ratepayer is nonlow income; for purposes of this section, nonlow income is defined as an individual who has an annual household gross income greater than 150% of the Federal poverty income guidelines, and has a delinquency for which the individual is requesting a payment agreement but offering terms that the utility, after consideration of the factors at §  56.97(b) (relating to procedures upon ratepayer or occupant contact prior to termination), finds unacceptable.

     (ii)   The service is being rendered to an individually-metered residential dwelling, and the ratepayer and occupants are the only individuals affected by the installation of a prepayment meter.

     (iii)   The ratepayer and utility enter into a settlement agreement which includes, but is not limited to, the following terms:

       (A)   The ratepayer voluntarily agrees to the installation of a prepayment meter.

       (B)   The ratepayer agrees to purchase prepayment cards to maintain service until the total balance is retired and the utility agrees to make new cards available to the ratepayer within 5 days of receipt of prepayment.

       (C)   The utility agrees to furnish the ratepayer an emergency backup card for additional usage of at least 5 days.

       (D)   The ratepayer agrees that failure to renew the card by making prepayment for additional service constitutes a request for discontinuance under §  56.72(1) (relating to discontinuation of service), except during a medical emergency, and that discontinuance will occur when the additional usage on the emergency backup card runs out.

     (iv)   During the first 2 years of use of prepayment meters, the utility thoroughly and objectively evaluates the use of prepayment meters in accordance with the following:

       (A)   Content. The evaluation should include both process and impact components. Process evaluation should focus on whether the use of pre-payment meters conforms to the program design and should assess the degree to which the program operates efficiently. The impact evaluation should focus on the degree to which the program achieves the continuation of utility service to participants at reasonable cost levels. The evaluation should include an analysis of the costs and benefits of traditional collections or alternative collections versus the costs and benefits of handling nonlow income positive ability to pay customers through prepayment metering. This analysis should include comparisons of customer payment behavior, energy consumption, administrative costs and actual collection costs.

       (B)   Time frame. The process evaluation should be undertaken during the middle of the first year; the impact evaluation at least by the end of the second year.

     (v)   The utility develops a written plan for a prepayment meter program, consistent with the criteria established in this section, and submits the plan to the Commission at least 30 days in advance of the effective date of the program.

   (4)  Temporary service for short-term use, including installation and removal, with credit for reasonable salvage.

   The provisions of this §  56.17 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1304, 1501, 1504 and 2911.

   The provisions of this §  56.17 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended January 13, 1995, effective April 14, 1995, 25 Pa.B. 145. Immediately preceding text appears at serial page (169480).

PAYMENTS

§ 56.21. Payment.

 The due date for payment of a bill may be no less than 20 days from the date of transmittal; that is, the date of mailing or physical delivery by the utility to the ratepayer.

   (1)  Extension of due date to next business day. If the last day for payment falls on a Saturday, Sunday, bank holiday or other day when the offices of the utility which regularly receive payments are not open to the general public, the due date shall be extended to the next business day.

   (2)  Date of payment by mail. For a remittance by mail, one or more of the following applies:

     (i)   Payment shall be deemed to have been made on the date of the postmark.

     (ii)   The utility may not impose a late payment charge unless payment is received more than 5 days after the due date.

   (3)  Branch offices or authorized payment agents. The effective date of payment to a branch office or authorized payment agent, unless payment is made by mail under paragraph (2), is the date of actual receipt of payment at that location.

   (4)  Multiple notifications. When a utility advises a ratepayer by multiple notices or contacts, which contain different due dates, the date on or before which payment is due shall be the last date contained in any of the notices.

   The provisions of this §  56.21 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.21 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; corrected March 27, 1992, effective June 30, 1990, 22 Pa.B. 1426. Immediately preceding text appears at serial pages (144888) to (144889).

   Equal Protection

   By requiring public utilities to prepay sales taxes for its nonresidential customers and then write off as a bad debt any such taxes it cannot collect from the customer, the Legislature did not violate equal protection. Philadelphia Electric Company v. Department of Revenue, 538 A.2d 607 (Pa. Cmwlth. 1988).

 (a)  Every utility subject to this chapter is prohibited from levying or assessing a late charge or penalty on any overdue utility bill, as defined in §  56.21 (relating to payment), in an amount which exceeds 1.5% interest per month on the full unpaid and overdue balance of the bill. These charges are to be calculated on the overdue portions of the bill only. The interest rate, when annualized, may not exceed 18% simple interest per annum.

 (b)  An additional charge or fixed fee designed to recover the cost of a subsequent rebilling may not be charged by a regulated utility.

 (c)  Late payment charges may not be imposed on disputed estimated bills, unless the estimated bill was required because utility personnel were willfully denied access to the affected premises to obtain an actual meter reading.

   The provisions of this §  56.22 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.22 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (37333) to (37334).

   Conflict with Statute

   Since 42 Pa.C.S. §  8101 (relating to interest on judgments) limits postjudgment interest to 6% per year unless otherwise provided by another statute, it supersedes the regulation that provides for 18% interest per year on amounts owed to a public utility. Equitable Gas Co. v. Wade, 812 A.2d 715 (Pa. Super. 2002).

   Late Payment Charges

   In its monthly billing statements, the utility clearly instructed its customers to pay either the account balance or the optional payment amount by a certain date to avoid a specified late payment charge calculated at a certain monthly percentage rate, and thus the billing statements contained all of the information required by the regulations and the tariff approved by the Pennsylvania Public Utility Commission; moreover, the Pennsylvania Public Utility Commission had approved the specific language used in the monthly billing statements under the detailed ‘‘plain language’’ guidelines set forth in 52 Pa. Code §  69.251. Aronson v. Pennsylvania Public Utility Commission, 740 A.2d 1208 (Pa. Cmwlth. 1999); appeal denied 751 A.2d 193 (Pa. 2000).

 Payments received by a utility without written instructions that they be applied to merchandise, appliances, special services, meter testing fees or other nonbasic charges and which are insufficient to pay the balance due for the items plus amounts billed for utility service shall first be applied to the residential utility service.

   The provisions of this §  56.23 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

 In the absence of written instructions, a disputed bill or an amortization agreement, payments received by a utility which are insufficient to pay a balance due both for prior service and for service billed during the current billing period shall first be applied to the balance due for prior service.

   The provisions of this §  56.24 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

Subchapter C. CREDIT AND DEPOSITS STANDARDS POLICY

PROCEDURES FOR NEW APPLICANTS

Sec.

§ 56.31. Policy statement.

 An essential ingredient of the credit and deposit policies of each utility shall be the equitable and nondiscriminatory application of those precepts to potential and actual ratepayers throughout the service area without regard to the economic character of the area or any part thereof. Deposit policies shall be based upon the credit risk of the individual applicant or ratepayer rather than the credit history of the affected premises or the collective credit reputation or experience in the area in which he lives and without regard to race, sex, age over 18, national origin or marital status.

 A utility shall provide residential service without requiring a deposit when the applicant satisfies one of the following requirements:

   (1)  Prior utility payment history. The applicant has been a recipient of utility service of a similar type within a period of 24 consecutive months preceding the date of the application and was primarily responsible for payment for such service, so long as:

     (i)   The average periodic bill for the service was equal to at least 50% of that estimated for new service.

     (ii)   The service of the applicant was not terminated for nonpayment during the last 12 consecutive months of that prior service.

     (iii)   The applicant does not have an unpaid balance from that prior service.

   (2)  Ownership of real property. The applicant owns or has entered into an agreement to purchase real property located in the area served by the utility or is renting his place of residence under a lease of one year or longer in duration, unless the applicant has an otherwise unsatisfactory credit history as an utility customer within 2 years prior to the application for service.

   (3)  Credit information. The applicant provides information demonstrating that he is not an unsatisfactory credit risk.

     (i)   The absence of prior credit history does not, of itself, indicate an unsatisfactory risk.

     (ii)   The utility may request and consider information including but not limited to: the name of the employer of the applicant, place and length of employment, residences during the previous 5 years, letters of reference, credit cards and any significant source of income other than from employment.

   The provisions of this §  56.32 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.32 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (37336) to (37337).

   Security Deposit

   A utility may not require a security deposit from a consumer based solely upon its determination that she has no prior credit history. No sanction will be imposed against the utility when the consumer is not entirely without fault in the utility’s determination that a security deposit is necessary. West Penn Power Co. v. Pennsylvania Public Utility Commission, 521 A.2d 75 (Pa. Cmwlth. 1987).

 If an applicant does not establish his credit under §  56.32 (relating to credit standards), the utility shall provide residential service when one of the following requirements is satisfied:

   (1)  Cash deposit. The applicant posts a cash deposit.

   (2)  Third-party guarantor. The applicant furnishes a written guarantee from a responsible ratepayer which, for the purposes of this section, shall mean a ratepayer who has or can establish credit, under §  56.32, to secure payment in an amount equal to that required for cash deposits.

     (i)   A guarantee shall be in writing and shall state the terms of the guarantee.

     (ii)   The guarantor shall be discharged when the applicant has met the terms and conditions which apply under § §  56.52—56.57.

   The provisions of this §  56.33 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504—506, 1301 and 1501.

   The provisions of this §  56.33 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (241285) to (241286).

 Deposits for applicants for temporary service may be required in accordance with §  53.82(1) (relating to deposits).

 A utility may require, as a condition of the furnishing of residential service to an applicant, the payment of any outstanding residential account with the utility which accrued within the past 4 years for which the applicant is legally responsible and for which the applicant was billed properly. However, any such outstanding residential account with the utility may be amortized over a reasonable period of time. Factors to be taken into account include but are not limited to the size of the unpaid balance, the ability of the applicant to pay, the payment history of the applicant, and the length of time over which the bill accumulated. A utility may not require, as a condition of the furnishing of residential service, payment for residential service previously furnished under an account in the name of a person other than the applicant unless a court, district justice or administrative agency has determined that the applicant is legally obligated to pay for the service previously furnished. Examples of situations include a separated spouse or a cotenant. This section does not affect the creditor rights and remedies of a utility otherwise permitted by law.

   The provisions of this §  56.35 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504 and 1501—1504.

   The provisions of this §  56.35 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended September 10, 1982, effective September 11, 1982, 12 Pa.B. 3093; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (37337) and (73189).

 A utility shall establish written procedures for determining the credit status of an applicant. A utility employe processing applications or determining the credit status of applicants shall be supplied with or have ready access to a copy of the written procedures of the utility. A copy of these procedures shall be maintained on file in each of the business offices of the utility and made available, upon request, for inspection by members of the public and the Commission.

   (1)  Reasons for denial of credit. If credit is denied, the utility shall inform the ratepayer or applicant in writing of the reasons for the denial.

   (2)  Informing applicants of procedures. Utility personnel shall fully explain the credit and deposit procedures of the utility to each ratepayer or applicant for service.

 If the investigation and determination of credit status is expected to take or in fact takes longer than 3 business days commencing the date after the application is made, the utility shall provide service pending completion of the investigation.

 An applicant may elect to pay any required deposits in three installments: 50% payable upon the determination by the utility that the deposit is required, 25% payable 30 days after the determination, and 25% payable 60 days after the determination.

   The provisions of this §  56.38 issued under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.38 adopted April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250.

PROCEDURES FOR EXISTING RATEPAYERS

§ 56.41. General rule.

 A utility may require an existing ratepayer to post a deposit to reestablish credit under the following circumstances:

   (1)  Delinquent accounts. Whenever a ratepayer has been delinquent in the payment of any two consecutive bills or three or more bills within the preceding 12 months.

     (i)   Prior to requesting a deposit under this section, the utility shall give the ratepayer written notification of its intent to request a cash deposit if current and future bills continue to be paid after the due date.

       (A)   Notification shall clearly indicate that a deposit is not required at this time but that if bills continue to be paid after the due date a deposit will be required.

       (B)   Notification may be mailed or delivered to the ratepayer together with a bill for utility service.

       (C)   Notification shall set forth the address and phone number of the utility office where complaints or questions may be registered.

       (D)   A subsequent request for deposit shall clearly indicate that a ratepayer should register any question or complaint about that matter prior to the date the deposit is due in order to avoid having service terminated pending resolution of a dispute. The request shall also include the address and telephone number of the utility office where questions or complaints may be registered.

     (ii)   Except in the case of adjustments to equal monthly billing plans, a utility may issue a notification or subsequent request for a deposit based, in whole or in part, on a delinquent account arising out of a make-up bill as defined in §  56.14 (relating to previously unbilled utility services), under the following conditions:

       (A)   The utility has complied with the requirements of §  56.14. Compliance with a payment agreement or settlement agreement by the ratepayer discharges the delinquency, and a notification or request for deposit shall not thereafter be issued based on the make-up bill.

       (B)   If a make-up bill exceeds the otherwise normal estimated bill by at least 50% and if the ratepayer makes payment in full after the bill is delinquent but before a notification of intent to request a deposit is given to the ratepayer, such a notification or request for deposit shall not thereafter be issued based on the make-up bill.

   (2)  Condition to the reconnection of service. A utility may require a deposit as a condition to reconnection of service following a termination.

   (3)  Failure to comply with settlement or payment agreement. A utility may require a deposit, whether or not service has been terminated, when a ratepayer fails to comply with a material term or condition of a settlement or payment agreement.

   The provisions of this §  56.41 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.41 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (73190) to (73191) and (37340).

   The due date for payment of a deposit other than a deposit required as a condition for the reconnection of service under §  56.41(b) (relating to general rule) may not be less than 21 days from the date of mailing or service on the ratepayer of notification of the amount due. A ratepayer may elect to pay a required deposit in three installments: 50% payable upon the determination by the utility that the deposit is required, 25% payable 30 days after the determination and 25% payable 60 days after the determination.

   The provisions of this §  56.42 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1304, 1501 and 1504.

 Whenever a ratepayer is required to make a deposit, the requirement may be satisfied either by posting a cash deposit or becoming a member in good standing of a composite group.

   The provisions of this §  56.43 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

CASH DEPOSITS

§ 56.51. Amount of cash deposit.

 (a)  Applicants. A utility may not require a cash deposit from an applicant in excess of the average estimated bill of the applicant for a period equal to one billing period plus 1 additional month’s service, not to exceed 4 months in the case of water and sewage utilities and 2 months in the case of gas, electric and steam heat utilities, with a minimum deposit of $5.

 (b)  Existing ratepayers. For an existing ratepayer, the cash deposit may not exceed the estimated charges for service based on the prior consumption of that ratepayer for the class of service involved for a period equal to one average billing period plus 1 average month, not to exceed 4 months in the case of water and sewage utilities and 2 months in the case of gas, electric and steam heat utilities, with a minimum of $5.

 (c)  Adjustment of deposits. The amount of a cash deposit may be adjusted at the request of the ratepayer or the utility whenever the character or degree of the usage of the ratepayer has materially changed or when it is clearly established that the character or degree of service will materially change in the immediate future.

   The provisions of this §  56.52 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; reserved April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial page (37341).

 A cash deposit shall be refunded under the following conditions:

   (1)  Termination or discontinuance of service. Upon termination or discontinuance of service, the utility shall promptly apply the deposit of the ratepayer, including accrued interest, to any outstanding balance for utility service and refund or apply to the ratepayer’s account, the remainder to the ratepayer. A transfer of service from one location to another within a service area may not be deemed discontinuance within the meaning of this chapter.

   (2)  Credit established. When a ratepayer establishes credit under §  56.32 (relating to credit standards), the utility shall refund or apply to the ratepayer’s account, any cash deposit plus accrued interest.

   (3)  Third-party guarantor. When a ratepayer substitutes a third-party guarantor in accordance with §  56.33(3) (relating to composite group; cash deposits; third-party guarantor), the utility shall refund any cash deposit, plus accrued interest, up to the limits of the guarantee.

   (4)  Prompt payment of bills. After a ratepayer has paid bills for service for 12-consecutive months without having service terminated and without having paid his bill subsequent to the due date or other permissible period as stated in this chapter on more than two occasions, the utility shall refund any cash deposit, plus accrued interest, so long as the customer currently is not delinquent.

   (5)  Optional refund. At the option of the utility, a cash deposit, including accrued interest, may be refunded in whole or in part, at any time earlier than the time stated in this section.

   The provisions of this §  56.53 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 504—506, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.53 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (205740) to (205741).

 The ratepayer may elect to have a deposit applied to reduce bills for utility service or to receive a cash refund.

   The provisions of this §  56.54 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.54 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (37342) to (37343).

 If a ratepayer is not entitled to refund under §  56.53 (relating to refund of deposit), the utility shall review the account of the ratepayer each succeeding billing period and shall make appropriate disposition of the deposit in accordance with §  56.53 and §  56.54 (relating to application of deposit to bills).

   The provisions of this §  56.55 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.55 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (37343).

 If a cash deposit is applied or refunded, the utility shall mail or deliver to the ratepayer a written statement showing the amount of the original deposit plus accrued interest, the application of the deposit to a bill which had previously accrued, the amount of unpaid bills liquidated by the deposit and the remaining balance.

   The provisions of this §  56.56 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.56 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial page (37343).

 Interest at the rate of the average of 1-year Treasury Bills for September, October and November of the previous year is payable on deposits without deductions for taxes thereon unless otherwise required by law.

   The provisions of this §  56.57 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501, 1504 and 2911.

   The provisions of this §  56.57 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended January 13, 1995, effective April 14, 1995, 25 Pa.B. 145. Immediately preceding text appears at serial page (144901).

 Interest shall be paid annually to the ratepayer, or, at the option of either the utility or the ratepayer, shall be applied to service bills.

   The provisions of these § §  56.61—56.65 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; reserved July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (205743) to (205744) and (241289).

Subchapter D. INTERRUPTION AND DISCONTINUANCE
OF SERVICE

Sec.

§ 56.71. Interruption of service.

 A utility may temporarily interrupt service where necessary to effect repairs or maintenance; to eliminate an imminent threat to life, health, safety or substantial property damage; or for reasons of local, State or national emergency.

   (1)  Interruption with prior notice. Where the utility knows in advance of the circumstances requiring the service interruption, prior notice of the cause and expected duration of the interruption shall be given to ratepayers and occupants who may be affected.

   (2)  Interruption without prior notice. Where service is interrupted due to unforeseen circumstances, notice of the cause and expected duration of the interruption shall be given as soon as possible to ratepayers and occupants who may be affected.

   (3)  Notification procedures. Where ratepayers and occupants are to be notified under this section, the utility shall take reasonable steps, such as personal contact, phone contact and use of the mass media, to notify affected ratepayers and occupants of the cause and expected duration of the interruption.

   (4)  Permissible duration. Service may be interrupted for only the periods of time as are necessary to protect the health and safety of the public, to protect property or to remedy the situation which necessitated the interruption; and service shall be resumed as soon as possible thereafter.

   The provisions of this §  56.71 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.71 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (52630) to (52631).

 A utility may discontinue service without prior written notice under the following circumstances:

   (1)  Ratepayer’s residence. When a ratepayer requests a discontinuance at his residence, when the ratepayer and members of his household are the only occupants.

   (2)  Other premises or dwellings. Other premises or dwellings shall be as follows:

     (i)   When a ratepayer requests discontinuance at a dwelling other than his residence or at a single meter multifamily residence, whether or not his residence but, in either case, only under either of the following conditions:

       (A)   The ratepayer states in writing that the premises are unoccupied. The statement shall be on a form conspicuously bearing notice that information provided by the ratepayer will be relied upon by the Commission in administering a system of uniform service standards for public utilities and that any false statements are punishable criminally. When the ratepayer fails to provide a notice, or when the ratepayer has falsely stated the premises are unoccupied, the ratepayer shall be responsible for payment of utility bills until the utility terminates service.

       (B)   The occupants affected by the proposed cessation inform the utility orally or in writing of their consent to the discontinuation.

     (ii)   Where the conditions set forth in subparagraph (i) have not been met, the utility, at least 10 days prior to the proposed termination, shall conspicuously post notice of termination at the affected premises.

       (A)   When the premises is a multi-family residence, notice shall also be posted in common areas.

       (B)   Notices shall, at a minimum, state: the date on or after which termination will occur; the name and address of the utility; and the requirements necessary for the occupant to obtain utility service in the occupant’s name. Further termination provisions of this chapter except §  56.97 (relating to procedures upon ratepayer or occupant contact prior to termination) do not apply in these circumstances.

       (C)   This section does not apply when the ratepayer is a landlord. See § §  56.121—56.126 (Reserved).

   The provisions of this §  56.72 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.72 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (52631) and (40805).

   Notice of Discontinuation

   In an action in which landlords alleged that the utility’s disconnection of service without notification to them as owners of the property was negligent, unreasonable, and a violation of the Public Utility Commission’s regulations, the court held that this regulation, which permits a public utility to discontinue service without prior written notice when the ratepayer (in this case, the tenants) request discontinuance of service, was reasonable and not an arbitrary execution of the agency’s functions; this court would not rectify a landlord’s failure to protect himself contractually by creating a statutory duty out of whole cloth for public utilities to provide notice to nonratepaying landlords. Rohrbaugh v. Pennsylvania Public Utility Commission, 727 A.2d 1080 (Pa. 1999).

   This section cited in 52 Pa. Code §  56.2 (relating to definitions); 52 Pa. Code §  56.17 (relating to advance payments); and 52 Pa. Code §  56.93 (relating to personal contact).

Subchapter E. TERMINATION OF SERVICE

GROUNDS FOR TERMINATION

Sec.

§ 56.81. Authorized termination of service.

 Utility service to a dwelling may be terminated for one or more of the following reasons:

   (1)  Nonpayment of an undisputed delinquent account.

   (2)  Failure to post a deposit, provide a guarantee or establish credit.

   (3)  Unreasonable refusal to permit access to meters, service connections and other property of the utility for the purpose of maintenance, repair or meter reading.

   (4)  Unauthorized use of the utility service delivered on or about the affected dwelling.

   (5)  Failure to comply with the material terms of a settlement or payment agreement.

   (6)  Fraud or material misrepresentation of identity for the purpose of obtaining utility service.

   (7)  Tampering with meters or other utility equipment.

   (8)  Violating tariff provisions on file with the Commission so as to endanger the safety of a person or the integrity of the energy delivery system of the utility.

   The provisions of this §  56.81 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.81 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial pages (40806) and (52632).

 Except in emergencies—which include unauthorized use of utility service—service shall not be terminated, for nonpayment of charges or for any other reason, during the following periods:

   (1)  On Friday, Saturday, or Sunday.

   (2)  On a bank holiday or on the day preceding a bank holiday.

   (3)  On a holiday observed by the utility or on the day preceding such holiday. A holiday observed by a utility shall mean any day on which the business office of the utility is closed to observe a legal holiday, to attend utility meetings or functions, or for any other reason.

   (4)  On a holiday observed by the Commission or on the day preceding such holiday.

   The provisions of this §  56.82 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.82 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial page (52632).

 Unless expressly and specifically authorized by the Commission, service may not be terminated nor will a termination notice be sent for any of the following reasons:

   (1)  Nonpayment for concurrent service of the same class received at a separate dwelling.

   (2)  Nonpayment for a different class of service received at the same or a different location. Service may be terminated, however, when, under the tariff of the utility, a change in classification is necessitated upon the completion of construction work previously billed at a different rate applicable during construction.

   (3)  Nonpayment, in whole or in part: for leased or purchased merchandise, appliances or special services including but not limited to merchandise and appliance installation fees, rental and repair costs; of meter testing fees; of special construction charges; and of other nonrecurring charges that are not essential to delivery or metering of service, except as provided in this chapter.

   (4)  Nonpayment of bills for delinquent accounts of the prior ratepayer at the same address.

   (5)  Nonpayment of a deposit which is based, in whole or in part, on a delinquent account arising out of a make-up bill as defined in §  56.14 (relating to previously unbilled utility service) and the ratepayer has complied with the requirements of §  56.41(1)(ii)(A) or (B) (relating to general rule).

   (6)  Noncompliance with a payment agreement prior to the due date of the bill which forms the basis of the agreement.

   (7)  Nonpayment of charges for utility service furnished more than 4 years prior to the date the bill is rendered.

   (8)  Nonpayment for residential service already furnished in the names of persons other than the ratepayer unless a court, district justice or administrative agency has determined that the ratepayer is legally obligated to pay for the service previously furnished. This paragraph does not affect the creditor rights and remedies of a utility otherwise permitted by law.

   (9)  Nonpayment of charges calculated on the basis of estimated billings, unless the estimated bill was required because utility personnel were unable to gain access to the affected premises to obtain an actual meter reading on two occasions and have made a reasonable effort to schedule a meter reading at a time convenient to the ratepayer or occupant, or a subsequent actual reading has been obtained as a verification of the estimate prior to the initiation of termination procedures.

   (10)  Nonpayment of delinquent accounts: which accrued over two billing periods or more, which remain unpaid in whole or in part for 6 months or less, and which amount to a total delinquency of less than $25.

   (11)  Nonpayment of delinquent accounts when the amount of the deposit presently held by the utility is within $25 of account balance.

   The provisions of this §  56.83 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.83 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B 1250. Immediately preceding text appears at serial pages (52632) to (52633).

   This section cited in 52 Pa. Code §  56.118 (relating to right of utility to petition the Commission); and 52 Pa. Code §  65.9 (relating to adjustment of bills for meter error).

NOTICE PROCEDURES PRIOR TO TERMINATION

§ 56.91. General notice provisions.

 Prior to a termination of service, the utility shall mail or deliver written notice to the ratepayer at least 10 days prior to the date of the proposed termination. In the event of any taking or acceptance of utility service without the knowledge or approval of the utility, other than unauthorized use of service as defined in §  56.2 (relating to definitions), the utility shall comply with § §  56.93—56.97, but need not otherwise provide notice 10 days prior to termination.

   The provisions of this §  56.91 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504—506, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.91 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial page (205752).

 A utility may not mail or deliver a notice of termination if a notice of dispute has been filed and is unresolved and if the subject matter of the dispute forms the grounds for the proposed termination. A notice mailed or delivered in contravention of this section is void.

   The provisions of this §  56.92 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

   Notice; Jurisdiction of Commission

   When the utility sent a termination notice more than 6 weeks before the petitioner filed his complaint with the Commission, the sending of the termination notice was not in violation of §  56.92. In addition, the sending of the termination notice did not invoke Commission jurisdiction. Gasparro v. Public Utility Commission, 814 A.2d 1282 (Pa. Cmwlth. 2003).

 Except when authorized by §  56.71, §  56.72 or §  56.98 (relating to interruption of service; discontinuation of service; and exception for terminations based on occurrences harmful to person or property), a utility may not interrupt, discontinue or terminate service without personally contacting the ratepayer or a responsible adult occupant at least 3 days prior to the interruption, discontinuance or termination, in addition to providing other notice as specified by the properly filed tariff of the utility or as required by this chapter or other Commission directive. For purposes of this section, ‘‘personal contact’’ means:

   (1)  Contacting the ratepayer or responsible adult occupant in person or by telephone.

   (2)  Contacting another person whom the ratepayer has designated to receive a copy of a notice of termination, other than a member or employe of the Commission.

   (3)  If the ratepayer has not made the designation noted in paragraph (2), contacting a community interest group or other entity, including a local police department, which previously shall have agreed to receive a copy of the notice of termination and to attempt to contact the ratepayer.

   (4)  If the ratepayer has not made the designation noted in paragraph (2) and if there is no community interest group or other entity which previously has agreed to receive a copy of the notice of termination, contacting the Commission in writing.

   The provisions of this §  56.93 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 504—506, 1301 and 1501.

   The provisions of this §  56.93 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (241291) to (241292).

 Immediately preceding the termination of service, a utility employe, who may be the utility employe designated to perform the termination, shall attempt to make personal contact with a responsible person at the residence of the ratepayer and shall attempt to make personal contact with a responsible person at the affected dwelling.

   (1)  Termination prohibited in certain cases. If evidence is presented which indicates that payment has been made, a serious illness or medical condition exists, or a dispute or complaint is properly pending or if the employe is authorized to receive payment and payment in full is tendered in any reasonable manner, then termination shall not occur. However, if the disputing party does not pay all undisputed portions of the bill, termination may occur.

   (2)  Methods of payment. Payment in any reasonable manner includes payment by personal check unless the ratepayer within the past year has tendered a check which has been returned for insufficient funds or for which payment has been stopped.

   The provisions of this §  56.94 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.94 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended September 14, 1984, effective September 15, 1984, 14 Pa.B. 3364. Immediately preceding text appears at serial pages (82153) to (82154).

 If a prior contact has not been made with a responsible adult either at the residence of the ratepayer, as required by §  56.94 (relating to procedures immediately prior to termination) or at the affected dwelling, the employe may not terminate service but shall conspicuously post a termination notice at the residence of the ratepayer and the affected dwelling, advising that service will be disconnected not less than 48 hours from the time and date of posting.

   The provisions of this §  56.95 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.95 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250. Immediately preceding text appears at serial page (40807).

 When service is actually terminated, notice or a written statement which contains the address and telephone number of the utility where the ratepayer or occupant may arrange to have service restored as well as a medical emergency notice substantially in the form which is attached to this chapter as Appendix B (relating to medical emergency notice) shall be conspicuously posted or delivered to a responsible person at the residence of the ratepayer and at the affected premises.

   The provisions of this §  56.96 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

 (a)  If, after the issuance of the initial termination notice and prior to the actual termination of service, a ratepayer or occupant contacts the utility concerning a proposed termination, an authorized utility employe shall fully explain:

   (1)  The reasons for the proposed termination.

   (2)  All available methods for avoiding a termination, including the following:

     (i)   Tendering payment in full or otherwise eliminating the grounds for termination.

     (ii)   Entering a settlement or payment agreement.

   (3)  The medical emergency procedures.

 (b)  The utility, through its employes, shall exercise good faith and fair judgment in attempting to enter a reasonable settlement or payment agreement or otherwise equitably to resolve the matter. Factors to be taken into account when attempting to enter into a reasonable settlement or payment agreement include the size of the unpaid balance, the ability of the ratepayer to pay, the payment history of the ratepayer and the length of time over which the bill accumulated. If a settlement or payment agreement is not established, the company shall further explain the following:

   (1)  The right of the ratepayer to file a dispute with the utility and, thereafter, an informal complaint with the Commission.

   (2)  The procedures for resolving disputes and informal complaints, including the address and telephone number of the Commission: Public Utility Commission, Box 3265, Harrisburg, Pennsylvania, 17105-3265, (800) 692-7380.

   (3)  The duty of the ratepayer to pay any portion of a bill which the ratepayer does not honestly dispute.

   The provisions of this §  56.97 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504—506, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.97 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended September 22, 1978, effective September 23, 1978, 8 Pa.B. 2632; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial pages (205756) to (205757).

 Notwithstanding any other provision of this chapter, when a service termination is based on an occurrence which endangers the safety of any person or may prove harmful to the energy delivery system of the utility, the utility may terminate service without written notice so long as the utility honestly and reasonably believes grounds to exist. At the time of termination, the utility shall make a bona fide attempt to deliver a notice of termination to a responsible person at the affected premises and, in the case of a single meter, multiunit dwelling, shall conspicuously post the notice at the dwelling, including common areas when permissible.

   The provisions of this §  56.98 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501, 1504 and 2911.

   The provisions of this §  56.98 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended January 13, 1995, effective April 14, 1995, 25 Pa.B. 145. Immediately preceding text appears at serial page (172375).

 A utility may not threaten to terminate service when it has no present intent to terminate service or when actual termination is prohibited under this chapter; notice of the intent to terminate shall be used only as a warning that service will in fact be terminated in accordance with the procedures set forth by this chapter, unless the ratepayer or occupant remedies the situation which gave rise to the enforcement efforts of the utility.

   The provisions of this §  56.99 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

   A utility is not permitted to threaten to terminate service when it has no present intent to do so and it cannot use a termination notice as a device to collect a security deposit. West Penn Power Co. v. Pennsylvania Public Utility Commission, 521 A.2d 75 (Pa. Cmwlth. 1987).

 Notwithstanding another provision of this chapter, during the period of December 1 through March 31, utilities subject to this chapter shall conform to the provisions of this section. The covered utilities may not be permitted to terminate heat related service between December 1 and March 31 except as provided in this section or in §  56.98 (relating to exception for terminations based on occurrences harmful to person or property).

   (1)  The utility shall comply with § §  56.91—56.95 including personal contact, as defined in §  56.93(1) (relating to personal contact), at the premises if occupied.

   (2)  If at the conclusion of the notification process defined in § §  56.91—56.95, a reasonable agreement cannot be reached between the utility and the ratepayer, the utility shall register with the Commission, in writing, a request for permission to terminate service, accompanied by a utility report as defined in §  56.152 (relating to contents of the utility company report).

   (3)  If the ratepayer has filed an informal complaint or if the Commission has acted upon the utility’s written request, the matter shall proceed under § §  56.161—56.165. Nothing in this section may be construed to limit the right of a utility or ratepayer to appeal a decision by the mediation unit under 66 Pa.C.S. §  701 (relating to complaints) and § §  56.171—56.173 and 56.211.

   (4)  For premises where heat related service has been terminated prior to December 1 of each year, covered utilities shall, within 90 days prior to December 1, survey and attempt to make post-termination personal contact with the occupant or a responsible adult at the premises and in good faith attempt to reach an agreement regarding payment of any arrearages and restoration of service.

   (5)  Companies shall file a brief report outlining their pre-December 1 survey and personal contact results with the Bureau of Consumer Services on or before December 15 of each year.

   The provisions of this §  56.100 issued under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.100 adopted April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250.

   This section cited in 52 Pa. Code §  56.101 (relating to limited notice upon noncompliance with report or order).

NOTICE PROCEDURES AFTER DISPUTE FILED

§ 56.101. Limited notice upon noncompliance with report or order.

 (a)  Except during the winter period identified in §  56.100 (relating to winter termination procedures), the original grounds for terminations may be revived provided a 10-day termination notice was previously issued to the ratepayer. The original grounds for termination shall be revived and utilities may proceed with termination as provided in subsection (b) upon the failure to timely appeal from or comply with any of the following:

   (1)  A utility company report required by §  56.151 (relating to the general rule).

   (2)  An informal complaint report required by §  56.161 (relating to general rule; time for filing).

   (3)  An order from a formal complaint, under §  56.173 or §  56.174 (relating to formal complaint procedures other than appeals from mediation decisions of the Bureau of Consumer Services; and formal complaint procedures for appeals from mediation decisions of the Bureau of Consumer Services).

   (4)  A company negotiated payment or settlement agreement where a customer fails, at any time, during the first 120 days to maintain the agreement and this failure reflects payments of less than 50% of the overdue balance during this same time period.

 (b)  The utility may not be required to give further written notice so long as within 10 business days of the failure to appeal or comply with subsection (a):

   (1)  The ratepayer is personally contacted as described in §  56.93(1), (2) or (3) (relating to personal contact), at least 3 days prior to termination. If the utility is unable to make personal contact as described in §  56.93(1), (2) or (3), it shall proceed with the posting procedure described in §  56.95 (relating to deferred termination when no prior contact).

   (2)  At the time of termination, the utility serves personally on the ratepayer or posts conspicuously at the residence of the ratepayer and at the affected premises, including common areas where permissible, a post-termination notice complying with §  56.96 (relating to post-termination notice).

   The provisions of this §  56.101 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504—506, 1301, 1305, 1501 and 1504.

   The provisions of this §  56.101 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended July 17, 1998, effective August 17, 1998, 28 Pa.B. 3379. Immediately preceding text appears at serial page (205759).

EMERGENCY PROVISIONS

§ 56.111. General provision.

 A utility may not terminate, or refuse to restore, service to a premise when an occupant therein is certified by a physician to be seriously ill or affected with a medical condition which will be aggravated by a cessation of service or failure to restore service.

   The provisions of this §  56.111 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

   Landlord’s Failure to Pay

   Emergency provisions found at 52 Pa. Code § §  56.111—56.118 do apply to tenants where service is to be or has been terminated due to the landlord’s failure to pay his bill, and take precedence over the more general Landlord-Tenant provisions of 66 Pa.C.S. § §  1521—1533 (relating to discontinuance of service to lease premises) and the accompanying regulations at 52 Pa. Code § §  56.121—56.126. Tenant Action Group v. Pennsylvania Public Utility Commission, 514 A.2d 1003 (Pa. Cmwlth. 1986).

   Nonchronic Illness

   Emergency medical provisions, which provide for medical certifications to prevent termination of gas service, apply to long-term and short-term nonchronic illnesses. Jackson v. Pennsylvania Public Utility Commission, 522 A.2d 1187 (Pa. Cmwlth. 1987); appeal denied 536 A.2d 1335 (Pa. 1987).

 If, prior to termination of service, the utility employe is informed that an occupant is seriously ill or is affected with a medical condition which will be aggravated by a cessation of service and that a medical certification will be procured, termination may not occur for at least 3 days. Service may be terminated if no certification is produced within that 3-day period.

   The provisions of this §  56.112 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

   Nonchronic Illnesses

   Emergency medical provisions, which provide for medical certifications to prevent termination of gas service, apply to long-term and short-term nonchronic illnesses. Jackson v. Pennsylvania Public Utility Commission, 522 A.2d 1187 (Pa. Cmwlth. 1987); appeal denied 536 A.2d 1335 (Pa. 1987).

   This section cited in 52 Pa. Code §  56.114 (relating to length of postponement; renewals); and 52 Pa. Code §  56.115 (relating to restoration of service).