2010 Pennsylvania Code
Title 66 - PUBLIC UTILITIES
Chapter 14 - Responsible Utility Customer Protection
1404 - Cash deposits and household information requirements.

     § 1404.  Cash deposits and household information requirements.
        (a)  General rule.--In addition to the right to collect a
     deposit under any commission regulation or order, the commission
     shall not prohibit a public utility, prior to or as a condition
     of providing utility service, from requiring a cash deposit in
     an amount that is equal to one-sixth of the applicant's
     estimated annual bill, at the time the public utility determines
     a deposit is required, from the following:
            (1)  An applicant who previously received 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 utility service
            delivered on or about the affected dwelling.
                (v)  Failure to comply with the material terms of a
            settlement or payment agreement.
                (vi)  Fraud or material misrepresentation of identity
            for the purpose of obtaining utility service.
                (vii)  Tampering with meters, including, but not
            limited to, bypassing a meter or removal of an automatic
            meter reading 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)  Any applicant or customer who is unable to establish
        creditworthiness to the satisfaction of the public utility
        through the use of a generally accepted credit scoring
        methodology which employs standards for using the methodology
        that fall within the range of general industry practice.
            (3)  A customer who fails to comply with a material term
        or condition of a settlement or payment agreement.
        (b)  Third-party guarantor.--Nothing in this section shall be
     construed to preclude an applicant from furnishing a third-party
     guarantor in lieu of a cash deposit. The guaranty shall be in
     writing and shall state the terms of the guaranty. The guarantor
     shall be responsible for all missed payments owed to the public
     utility.
        (c)  Deposit hold period.--
            (1)  A public utility may hold a deposit until a timely
        payment history is established or for a maximum period of 24
        months.
            (2)  A timely payment history is established when a
        customer has paid in full and on time for twelve consecutive
        months.
            (3)  At the end of the deposit holding period as
        established in paragraph (1), the public utility shall deduct
        the outstanding balance from the deposit and return or credit
        any positive difference to the customer.
            (4)  If service is terminated before the end of the
        deposit holding period as established in paragraph (1), 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.
            (5)  If a customer becomes delinquent before the end of
        the deposit holding period as established in paragraph (1),
        the public utility may deduct the outstanding balance from
        the deposit.
            (6)  The public utility shall accrue on the deposit until
        it is returned or credited the legal rate of interest
        pursuant to section 202 of the act of January 30, 1974
        (P.L.13, No.6), referred to as the Loan Interest and
        Protection Law, and return such interest with the deposit.
        (d)  Adult occupants.--Prior to providing 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.
        (e)  Failure to pay full amount of cash deposit.--A public
     utility shall not be required to provide service if the
     applicant fails to pay the full amount of the cash deposit.
        (f)  City natural gas distribution operation; additional
     deposit rules for city natural gas distribution operations.--
     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)  If an applicant has household income above 300% of
        the Federal poverty level, one-sixth of the applicant's
        estimated annual bill paid in full at the time the city
        natural gas distribution operation determines a deposit is
        required; or
            (2)  If an applicant has household income no greater than
        300% of the Federal poverty level, one-twelfth of the
        applicant's estimated annual bill 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.
        (g)  Estimated annual bill.--When used in this section, 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.
        (h)  Time for paying deposits upon reconnection.--Applicants
     required to pay a deposit upon reconnection under subsection
     (a)(1) shall have up to 90 days to pay the deposit in accordance
     with commission regulations.