Press Release

PUC Allows Consumers One Commission-Approved Payment Arrangement Under Chapter 14

Published on 10/27/2005

Filed under: Electric Gas Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission today took action to allow consumers to establish one payment arrangement through the Commission, regardless of any previous payment arrangements the consumer may have made with the utility.

“Today, the Commission is acting on input received from advocates, utilities and state officials and fulfilling our traditional and fundamental role as final arbiter of utility consumers’ rights,” said PUC Chairman Wendell F. Holland. “In implementing this law, we are working hard to protect the health and safety of residents.”

The action amends the First Implementation Order for Chapter 14 of the Public Utility Code. The PUC can establish one payment arrangement with a consumer regardless of any previous payment arrangements made between the customer and the utility company, according to the amended order. Consumers are directed to first contact the utility to resolve their problem before filing a complaint.

The Commission-established payment arrangement must adhere to the set payback periods based on income level established under Chapter 14. The law does not allow the PUC to establish a payment arrangement if you fail to pay your monthly Customer Assistance Program (CAP) payment.

The Commission amended the order by a vote of 3-2. The Commission’s previous order addressed issues dealing with the implementation and enforcement of Chapter 14 including language that consumers could establish one payment either with a utility or through the Commission. The Commission voted to reconsider that portion of the First Implementation Order in August, asking for public comment on the issue.

In voting against amending the order, Commissioners Kim Pizzingrilli and Terrance J. Fitzpatrick cited the lack of distinction in the legislation between payment agreements reached between a utility and the customer or one established by the Commission, adding that a legislative amendment was needed.

Chapter 14 was passed by the General Assembly as Senate Bill 677 and signed into law as Act 201 of 2004.  Chapter 14 seeks to eliminate the opportunities for customers capable of paying to avoid paying their utility bills, and to provide utilities with the means to reduce their uncollectible accounts.  The new law changed the way regulated electric, water and major natural gas utilities handles cash deposits; reconnection of service; termination of service; payment arrangements; and the filing of termination complaints by residential customers. 

As part of a Second Implementation Order passed Sept. 9, 2005, the PUC directed electric, natural gas and water utilities to coordinate with the PUC, consumer advocates and community-based organizations to educate Pennsylvanians about changes in the law dealing with utility shut-offs.

The message is:   “Prepare Now” for higher energy costs this winter.  Learn about changes in the law related to utility shut-offs and know your rights.  Save money by learning how to conserve energy.  Budget billing and special programs can help you manage your bill.  Heat your home safely.  “Prepare Now,” before cold weather arrives.  Visit http://www.puc.state.pa.us/utilitychoice/preparenow/preparenow_index.aspx or call the PUC at 1-888-PUC-FACT.

The Pennsylvania Public Utility Commission ensures safe, reliable and reasonably priced electric, natural gas, water, telephone and transportation service for Pennsylvania consumers, by regulating public utilities and by serving as responsible stewards of competition.

For recent news releases, or more information about the PUC, visit our Internet homepage at www.puc.state.pa.us.

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Docket No.      M-00041802F0002

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