Subchapter B. BILLING AND PAYMENT STANDARDS

§ 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.