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Pennsylvania Code



Subchapter C. CREDIT AND DEPOSITS STANDARDS POLICY


PROCEDURES FOR APPLICANTS

Sec.


56.31.    Policy statement.
56.32.    Security and cash deposits.
56.33.    Third-party guarantors.
56.34.    Deposits for temporary service.
56.35.    Payment of outstanding balance.
56.36.    Written procedures.
56.37.    General rule.
56.38.    Payment period for deposits by applicants.

PROCEDURES FOR EXISTING CUSTOMERS


56.41.      General rule.
56.42.      Payment period for deposits by customers.
56.43.      [Reserved].

CASH DEPOSITS


56.51.      Amount of cash deposit.
56.52.      [Reserved].
56.53.      Deposit hold period and refund.
56.54.      [Reserved].
56.55.      [Reserved].
56.56.      Refund statement.
56.57.      Interest rate.
56.58.      Application of interest.
56.61—56.65.      [Reserved].

Cross References

   This subchapter cited in 52 Pa. Code §  56.1 (relating to statement of purpose and policy).

PROCEDURES FOR APPLICANTS


§ 56.31. Policy statement.

 An essential ingredient of the credit and deposit policies of each public utility shall be the equitable and nondiscriminatory application of those precepts to potential and actual customers throughout the service area without regard to the economic character of the area or any part thereof. Deposit policies must be based upon the credit risk of the individual applicant or customer rather than the credit history of the affected premises or the collective credit reputation or experience in the area in which the applicant or customer lives and without regard to race, age over 18 years of age, National origin, marital status, color, religious creed, ancestry, union membership, gender, sexual orientation, gender identity or expression, AIDS or HIV status, or disability.

Authority

   The provisions of this §  56.31 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 1301, 1401—1419, 1501 and 1509.

Source

   The provisions of this §  56.31 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358957) to (358958).

§ 56.32. Security and cash deposits.

 (a)  In addition to the right to collect a deposit under any Commission regulation or order, the public utility may require a cash deposit, payable during a 90-day period in accordance with §  56.38 (relating to payment period for deposits by applicants), in an amount that is equal to 1/6 of an applicant’s estimated annual bill at the time the public utility determines a deposit is required, based upon the following:

   (1)  An applicant who previously received public utility distribution services and was a customer of the public utility and whose service was terminated for any of the following reasons:

     (i)   Nonpayment of an undisputed delinquent account.

     (ii)   Failure to complete payment of a deposit, provide a guarantee or establish credit.

     (iii)   Failure to permit access to meters, service connections or other property of the public utility for the purpose of replacement, maintenance, repair or meter reading.

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

     (v)   Failure to comply with the material terms of a payment arrangement.

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

     (vii)   Tampering with meters, including bypassing a meter or removal of an AMR device or other public utility equipment.

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

   (2)  An applicant who is unable to establish creditworthiness to the satisfaction of the public utility through the use of a generally accepted credit scoring methodology, as provided in a Commission-approved tariff, and which employs standards for using the methodology that fall within the range of general industry practice. The credit scoring methodology utilized for this purpose must specifically assess the risk of public utility bill payment.

 (b)  Except for applicants who are subject to a deposit under subsection (a), a city natural gas distribution operation may require a deposit from the applicant as follows:

   (1)  When an applicant has household income above 300% of the Federal poverty level, a deposit of 1/6 of the applicant’s estimated annual bill shall be paid in full at the time the city natural gas distribution operation determines a deposit is required.

   (2)  When an applicant has household income no greater than 300% of the Federal poverty level, 1/12 of the applicant’s estimated annual bill shall be paid in full at the time the city natural gas distribution operation determines a deposit is required. Applicants who enroll into the customer assistance program made available by the city natural gas distribution operation are not subject to this paragraph.

   (3)  The Commission will permit a city natural gas distribution operation to refuse to provide service to an applicant when the applicant has a pending lien or civil judgment by the city natural gas distribution operation outstanding against the applicant or against property owned in whole or in part by the applicant unless the applicant enters into a payment arrangement for the payment of the amount associated with the lien or judgment that remains outstanding at the time of the application.

 (c)  Prior to providing public utility service, a public utility may require the applicant to provide the names of each adult occupant residing at the location and proof of their identity. For purposes of this section, valid identification consists of one government issued photo identification. If one government issued photo identification is not available, the public utility may require the applicant to present two alternative forms of identification, as long as one of the identifications includes a photo of the individual. In lieu of requiring identification, the public utility may ask, but may not require, the individual to provide the individual’s Social Security Number. Public utilities shall take all appropriate actions needed to ensure the privacy and confidentiality of identification information provided by their applicants and customers.

 (d)  A public utility is not required to provide service if the applicant fails to pay the full amount of the cash deposit within the time periods under §  56.38. If the applicant chooses to pay the deposit in installments, installment payments must be paid in full by the due date. Failure to pay an installment in full by the due date is grounds for termination of service as provided in §  56.81 (relating to authorized termination of service).

 (e)  Notwithstanding subsection (a), a public utility may not require a cash deposit from an applicant who is, based upon household income, confirmed to be eligible for a customer assistance program. An applicant is confirmed to be eligible for a customer assistance program by the public utility if the applicant provides income documents or other information attesting to his or her eligibility for state benefits based on household income eligibility requirements that are consistent with those of the public utility’s customer assistance programs.

Authority

   The provisions of this §  56.32 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1401—1419, 1501, 1504 and 1509.

Source

   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; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358958) to (358959).

Notes of Decisions

   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).

Cross References

   This section cited in 52 Pa. Code §  56.33 (relating to third-party guarantors); 52 Pa. Code §  56.38 (relating to payment period for deposits by applicants); 52 Pa. Code §  56.53 (relating to deposit hold period and refund); and 52 Pa. Code §  64.32 (relating to credit standards).

§ 56.33. Third-party guarantors.

 If an applicant does not establish credit under §  56.32 (relating to security and cash deposits), the public 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. This section does not preclude an applicant from furnishing a third-party guarantor in lieu of a cash deposit. The guaranty must be in writing and state the terms of the guaranty. The guarantor shall be responsible for all missed payments owed to the public utility. For the purposes of this section, the term ‘‘guarantor’’ means a third-party who has or can establish credit under §  56.32.

Authority

   The provisions of this §  56.33 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504—506, 1301, 1401—1419 and 1501.

Source

   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; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (263654).

Cross References

   This section cited in 52 Pa. Code §  56.36 (relating to written procedures).

§ 56.34. Deposits for temporary service.

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

Source

   The provisions of this §  56.34 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655.

§ 56.35. Payment of outstanding balance.

 (a)  A public utility may require, as a condition of the furnishing of residential service to an applicant, the payment of any outstanding residential account with the public utility which accrued within the past 4 years for which the applicant is legally responsible and for which the applicant was billed properly.

 (b)  A public 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, except as provided for in paragraphs (1) and (2).

   (1)  A public utility may require the payment of an outstanding balance or portion of an outstanding balance if the applicant resided at the property for which service is requested during the time the outstanding balance accrued and for the time the applicant resided there, not exceeding 4 years from the date of the service request. The 4-year limit does not apply if the balance includes amounts that the public utility was not aware of because of fraud or theft on the part of the applicant.

   (2)  A public utility may establish that an applicant previously resided at a property for which residential service is requested through the use of mortgage, deed or lease information, a commercially available consumer credit reporting service or other methods approved as valid by the Commission. Public utilities shall include in their tariffs filed with the Commission the methods, other than those specifically mentioned in this paragraph, used to determine the applicant’s liability for any outstanding balance.

   (3)  Any outstanding residential account with the public utility may be amortized in accordance with §  56.191 (relating to payment and timing).

 (c)  This section does not affect the creditor rights and remedies of a public utility otherwise permitted by law.

Authority

   The provisions of this §  56.35 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1401—1419, 1501—1504 and 1509.

Source

   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; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358960) to (358961).

Cross References

   This section cited in 52 Pa. Code §  56.36 (relating to written procedures); 52 Pa. Code §  56.83 (relating to unauthorized termination of service); and 52 Pa. Code §  56.142 (relating to time for filing an informal complaint).

§ 56.36. Written procedures.

 (a)  Public utilities shall include in their tariffs filed with the Commission their credit and application procedures along with a general description of their credit scoring methodology and standards.

 (b)  A public utility shall establish written procedures for determining the credit status of an applicant and for determining responsibility for unpaid balances in accordance with §  56.35 (relating to payment of outstanding balance). The written procedures must specify that there are separate procedures and standards for victims with a protection from abuse order or a court order issued by a court of competent jurisdiction in this Commonwealth which provides clear evidence of domestic violence. The procedures must also specify that any applicant that is confirmed to be eligible for a customer assistance program will not be required to pay a deposit. A public utility employee 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 public utility. A copy of these procedures shall be maintained on file in each of the business offices of the public utility and made available, upon request, for inspection by members of the public and the Commission and be included on the public utility’s web site.

   (1)  Reasons for denial of credit. If credit is denied, the public utility shall inform the applicant in writing of the reasons for the denial within 3 business days of the denial. This information may be provided electronically to the applicant with the applicant’s consent. The written denial statement must include the provider of the credit score, information on the applicant’s ability to challenge the accuracy of the credit score and how to contact the credit score provider. If the public utility is requiring payment of an unpaid balance in accordance with §  56.35, the public utility shall specify in writing the amount of the unpaid balance, the dates during which the balance accrued and the location and customer name at which the balance accrued. The statement must inform the applicant of the right to furnish a third-party guarantor in accordance with §  56.33 (relating to third-party guarantors) and the right to contact the Commission. The statement must include information informing victims of domestic violence with a protection from abuse order, or a court order issued by a court of competent jurisdiction in this Commonwealth which provides clear evidence of domestic violence, that more lenient credit and liability standards may be available. The statement must also inform the applicant that if he or she is, based upon household income, confirmed to be eligible for a customer assistance program a deposit is not required. The public utility shall inform the applicant of the procedures and documentation necessary to qualify for an exemption from a security deposit requirement.

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

   (3)  Third-party requests for service. Requests from third parties to establish public utility service on behalf of an applicant will not be honored until the public utility has verified the legitimacy of the request. Verification may be accomplished by any means appropriate to confirm that the applicant consents to service being established or that the third party is authorized to act on the applicant’s behalf.

Authority

   The provisions of this §  56.36 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 1301, 1401—1419, 1501 and 1509.

Source

   The provisions of this §  56.36 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358961) to (358962).

§ 56.37. General rule.

 Once an applicant’s application for service is accepted by the public utility, the public utility shall make a bona fide attempt to provide service within 3 business days, provided that the applicant has met all regulatory requirements. A bona fide attempt to provide service within 7 business days is permissible if street or sidewalk digging is required. A longer time frame is permissible with the consent of the applicant. 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 public utility shall provide service pending completion of the investigation. If the public utility cannot provide service by the time frames specified in this section, the public utility shall inform the customer of this fact and provide a reasonable estimate of when service will be provided. These requirements do not apply to new service installations and service extensions that require the construction of facilities to provide the public utility service.

Authority

   The provisions of this §  56.37 amended under the Public Utility Code, 66 Pa.C.S. § §  1401—1419.

Source

   The provisions of this §  56.37 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246328).

§ 56.38. Payment period for deposits by applicants.

 (a)  The due date for payment of a deposit or any installment payment toward a deposit, other than an initial installment or a deposit required as a condition for the reconnection of service under §  56.41(2) (relating to general rule) may not be less than 21 days from the date of mailing or service on the applicant of notification of the amount due.

 (b)  An applicant required by a public utility to pay a deposit under §  56.32 (relating to security and cash deposits) or an applicant paying a deposit for the reconnection of service under §  56.41(2) may be required by the public utility to pay 50% prior to, and as a condition of, the reconnection of service with 25% billed 30 days after reconnection of service and 25% billed 60 days after the reconnection of service. The public utility shall inform the applicant of the option to pay the deposit in the installments described in this subsection. If the applicant chooses to pay the deposit in installments, installment payments must be paid in full by the due date. Failure to pay an installment by the due date is grounds for termination of service as provided in §  56.81 (relating to authorized termination of service). The applicant retains the option to pay the deposit amount in full before the due date regardless of any deposit installments previously paid.

Authority

   The provisions of this §  56.38 issued under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504; amended under the Public Utility Code, 66 Pa.C.S. § §  501, 1301, 1401—1419, 1501 and 1509.

Source

   The provisions of this §  56.38 adopted April 8, 1983, effective April 9, 1983, 13 Pa.B. 1250; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (358963).

Cross References

   This section cited in 52 Pa. Code §  56.32 (relating to security and cash deposits).

PROCEDURES FOR EXISTING CUSTOMERS


§ 56.41. General rule.

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

   (1)  Delinquent accounts. Whenever a customer 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 public utility shall give the customer 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 must 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 customer together with a bill for public utility service.

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

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

     (ii)   Except in the case of adjustments to budget billing plans, a public 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 public utility service) under the following conditions:

       (A)   The public utility has complied with §  56.14. Compliance with a payment arrangement by the customer discharges the delinquency and a notification or request for deposit may 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 customer makes payment in full after the bill is delinquent but before a notification of intent to request a deposit is given to the customer, a notification or request for deposit may not thereafter be issued based on the make-up bill.

   (2)  Condition to the reconnection of service. A public utility may require a deposit as a condition to reconnection of service following a termination in accordance with §  56.191 (relating to payment and timing).

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

   (4)  Cash deposit prohibition. Notwithstanding paragraphs (1)—(3), a public utility may not require a customer that, based upon household income, is confirmed to be eligible for a customer assistance program to provide a cash deposit. A customer is confirmed to be eligible for a customer assistance program by the public utility when the customer provides income documents or other information that he or she is eligible for state benefits based upon household income eligibility requirements that are consistent with those of the public utility’s customer assistance programs.

Authority

   The provisions of this §  56.41 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1401—1419, 1501, 1504 and 1509.

Source

   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; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358963) to (358965).

Cross References

   This section cited in 52 Pa. Code §  56.38 (relating to payment period for deposits by applicants); 52 Pa. Code §  56.42 (relating to payment period for deposits by customers); 52 Pa. Code §  56.53 (relating to deposit hold period and refund); and 52 Pa. Code §  56.83 (relating to unauthorized termination of service).

§ 56.42. Payment period for deposits by customers.

 (a)  Due date. The due date for payment of a deposit, other than a deposit required as a condition for the reconnection of service under §  56.41(2) (relating to general rule), may not be less than 21 days from the date of mailing or service on the customer of notification of the amount due.

 (b)  Delinquent account. A customer paying a deposit under §  56.41(1) may elect to pay a required deposit in three installments: 50% billed upon the determination by the public utility that the deposit is required, 25% billed 30 days after the determination and 25% billed 60 days after the determination. The public utility shall inform the customer of the option to pay the deposit in the installments described in this subsection. If the customer chooses to pay the deposit in installments, installment payments must be paid in full by the due date. Failure to pay an installment by the due date is grounds for termination of service as provided in §  56.81 (relating to authorized termination of service). The customer retains the option to pay the deposit amount in full before the due date regardless of any deposit installments previously paid.

 (c)  Reconnection of service. A customer paying a deposit for the reconnection of service under §  56.41(2) may be required to pay 50% prior to, and as a condition of, the reconnection of service with 25% billed 30 days after reconnection of service and 25% billed 60 days after the reconnection of service. The public utility shall inform the customer of the option to pay the deposit in the installments described in this subsection. If the customer chooses to pay the deposit in installments, installment payments must be paid in full by the due date. Failure to pay an installment by the due date is grounds for termination of service as provided in §  56.81. The customer retains the option to pay the deposit amount in full before the due date regardless of any deposit installments previously paid.

 (d)  Failure to comply with a payment arrangement. A customer paying a deposit under §  56.41(3) may be required by the public utility to pay the deposit in three installments: 50% billed upon the determination by the public utility that the deposit is required; 25% billed 30 days after the determination; and 25% billed 60 days after the determination. The public utility shall inform the customer of the option to pay the deposit in the installments described in this subsection. If the customer chooses to pay the deposit in installments, installment payments must be paid in full by the due date. Failure to pay an installment by the due date is grounds for termination of service as provided in §  56.81. The customer retains the option to pay the deposit amount in full before the due date regardless of any deposit installments previously paid.

Authority

   The provisions of this §  56.42 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1304, 1401—1419, 1501, 1504 and 1509.

Source

   The provisions of this §  56.42 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 September 16, 1988, effective June 30, 1979, 18 Pa.B. 4245; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (358965).

§ 56.43. [Reserved].


Source

   The provisions of this §  56.43 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; reserved October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246330).

CASH DEPOSITS


§ 56.51. Amount of cash deposit.

 (a)  Applicants. A public utility may require a cash deposit equal to 1/6 of the applicant’s estimated annual bill calculated on the basis of the annual bill to the dwelling at which service is being requested for the prior 12 months or, if unavailable, a similar dwelling in close proximity.

 (b)  City natural gas operation. A city natural gas distribution operation may require a cash deposit from an applicant with a household income no greater than 300% of the Federal poverty level in an amount not in excess of 1/12 of the applicant’s estimated annual bill. A city natural gas operation may require a cash deposit from an applicant with a household income level above 300% of the Federal poverty level in the amount of 1/6 of the applicant’s estimated annual bill. An estimated annual bill shall be calculated on the basis of the annual bill to the dwelling at which service is being requested for the prior 12 months or, if unavailable, a similar dwelling in close proximity.

 (c)  Existing customers. For an existing customer, the cash deposit may not exceed the estimated charges for service based on the prior consumption of that customer 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 utilities and 2 months in the case of gas and electric utilities.

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

Authority

   The provisions of this §  56.51 amended under the Public Utility Code, 66 Pa.C.S. § §  1401—1419.

Source

   The provisions of this §  56.51 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246330).

§ 56.52. [Reserved].


Source

   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).

§ 56.53. Deposit hold period and refund.

 (a)  A public utility may hold a deposit until a timely payment history is established.

 (b)  A timely payment history is established when a customer has paid in full and on time for any 12 consecutive months.

 (c)  At the end of the deposit holding period as established in subsection (a), the public utility shall deduct the outstanding balance from the deposit and return or credit any positive difference to the customer. At the option of the public 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.

 (d)  If service is terminated before the end of the deposit holding period as established in subsection (a), the public utility shall deduct the outstanding balance from the deposit and return any positive difference to the customer within 60 days of the termination.

 (e)  If a customer becomes delinquent before the end of the deposit holding period as established in subsection (a), the public utility may deduct the outstanding balance from the deposit.

 (f)  A public utility shall refund a deposit, along with any applicable interest, within 60 days upon determining that the customer or applicant from whom a deposit was collected is not subject to a deposit under §  56.32(e) (relating to security and cash deposits) or §  56.41(4) (relating to general rule).

Authority

   The provisions of this §  56.53 amended under the Public Utility Code, 66 Pa.C.S. § §  501, 504—506, 1301, 1305, 1401—1419, 1501, 1504 and 1509.

Source

   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; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial page (358967).

Cross References

   This section cited in 52 Pa. Code §  56.55 (relating to periodic review).

§ 56.54. [Reserved].


Authority

   The provisions of this §  56.54 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504; reserved under the Public Utility Code, 66 Pa.C.S. § §  1401—1419.

Source

   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; reserved October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246332).

Cross References

   This section cited in 52 Pa. Code §  56.55 (relating to periodic review).

§ 56.55. [Reserved].


Authority

   The provisions of this §  56.55 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1501 and 1504; reserved under the Public Utility Code, 66 Pa.C.S. § §  1401—1419.

Source

   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; reserved October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (246332).

§ 56.56. Refund statement.

 If a cash deposit is applied or refunded, the public utility shall mail or deliver to the customer 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.

Authority

   The provisions of this §  56.56 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1401—1419, 1501 and 1504.

Source

   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; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial pages (246332) and (324549).

§ 56.57. Interest rate.

 The public utility shall accrue interest on the deposit until it is returned or credited.

   (1)  Interest shall be computed at the simple annual interest rate determined by the Secretary of Revenue for interest on the underpayment of tax under section 806 of The Fiscal Code (72 P.S. §  806).

   (2)  The interest rate in effect when the deposit is required to be paid shall remain in effect until the date the deposit is refunded or credited, or December 31, whichever is later. A deposit initially accrues interest at the interest rate in effect at the time the deposit was required. This interest rate remains in effect until the end of the calendar year.

   (3)  On January 1 of each year, the new interest rate for that year will apply to the deposit. The new interest rate will be applied to the deposit for the calendar year starting January 1 until December 31 of that same year. Revised interest rates are calculated every subsequent January 1 and applied to the deposit until the deposit is refunded or applied to the account.

Authority

   The provisions of this §  56.57 amended under the Public Utility Code, 66 Pa.C.S. § §  331, 501, 504, 1301, 1305, 1401—1419, 1501, 1504, 1509 and 2911.

Source

   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; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473; amended May 31, 2019, effective June 1, 2019, 49 Pa.B. 2815. Immediately preceding text appears at serial pages (358968) to (358969).

§ 56.58. Application of interest.

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

Authority

   The provisions of this §  56.58 amended under the Public Utility Code, 66 Pa.C.S. § §  1401—1419.

Source

   The provisions of this §  56.58 adopted June 16, 1978, effective June 17, 1978, 8 Pa.B. 1655; amended October 7, 2011, effective October 8, 2011, 41 Pa.B. 5473. Immediately preceding text appears at serial page (324549).

§ § 56.61—56.65. [Reserved].


Source

   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).



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