810 R.I. Code R. 810-RICR-10-00-1.10

Current through November 7, 2024

Section 810-RICR-10-00-1.10 - Provisions of Residential Payment Plans

A. Maximum Terms

The maximum allowable residential payment plan terms that may be required by a gas, water or electric public utility are set out below. Nothing in these Rules and Regulations shall prevent a gas, water or electric public utility from setting up a standard residential payment plan or a payment plan for an individual residential customer with less stringent requirements.

B. Residential Payment Plans - In General

Each gas and electric public utility shall make available residential payment plans that allow a Protected Status Customer, a residential customer qualified for the financial hardship category, or a residential customer who does not qualify for financial hardship or the Protected Status Customer categories, to maintain or restore service in the event that such customer is Eligible for Termination, or such customer's service has been terminated. If a public utility has evidence that a residential customer is a Protected Status Customer or is qualified for the financial hardship category, subject to the terms as outlined below, such residential customer shall be allowed to enroll in one of the residential payment plans, subject to and in accordance with the requirements outlined in § 1.10(E)(1) of this Part below, hereinafter entitled "Protected Customer Payment Plans." If a public utility has evidence that a residential customer is not a Protected Status Customer or is not qualified for the financial hardship category, such customer shall be allowed to enroll in one of the residential payment plans as outlined in § 1.10(E)(2) of this Part below, hereinafter entitled "Standard Customer Payment Plans".

C. Enrollment

A residential customer shall become enrolled in a residential payment plan upon that customer's

1. agreeing to a Terms of Agreement for Residential Payment Plan (as set forth in § 1.11 of this Part) that is provided by the public utility, and

2. paying, or arranging for payment of, the initial payment, if any, required under such a Plan. Enrollment shall be available at any time during the year. Subject to the terms of the residential payment plans outlined in § 1.10 of this Part below, enrollment shall be available prior to a residential customer being Eligible for Termination, subsequent to a residential customer being Eligible for Termination, or subsequent to termination of utility service.

D. Disenrollment

1. Protected Customer Payment Plans and Standard Customer Payment Plans

A residential customer who has enrolled in a residential payment plan shall become disenrolled from that plan if that customer fails within a reasonable time to pay any proper utility bill rendered in accordance with tariffs on file with the Public Utilities Commission and/or the Terms of Agreement for Residential Payment Plan agreed to by the customer. For the purposes of this subsection, a "reasonable time" shall be at least forty (40) days after the mailing date of the bill, or ten (10) days after the payment is due, whichever is longer. Upon disenrollment, the public utility may proceed to terminate utility service in accord with the other provisions of these Rules and Regulations, namely, § 1.5 of this Part. Subsequent to disenrollment, in order to maintain or restore service, a residential customer must enroll in a residential payment plan, subject to the terms of the residential payment plans as outlined in § 1.10(E) of this Part below, or must pay 100% of the customer's unpaid balance.

a. If a customer becomes disenrolled from a payment plan that did not require a down payment to enroll, he or she must enroll in the next step of the payment plan, including making any required down payment, to avoid termination or to restore service. If a customer becomes disenrolled from a payment plan that required a down payment, but prior to termination, is able to provide a payment sufficient to bring his or her account current according to the terms of the payment plan in which the customer became disenrolled, that customer shall be re-enrolled and allowed to continue with the payment plan in which the customer was most recently enrolled. If a customer fails to bring his or her account current under this section within the period of time in which two payments are due on the customer's payment plan, such customer shall be required to make the initial down payment required under the plan from which the customer was disenrolled, and shall be required to re-negotiate a new residential payment plan in order to maintain service. A customer whose service is terminated shall not be allowed to re-enroll in the plan from which the customer was disenrolled.

2. Arrearage Forgiveness Payment Plan

A residential customer who has enrolled in an Arrearage Forgiveness Payment Plan shall become disenrolled from that plan if that customer fails to remain current with the required payments. Remaining current with payments shall mean that the customer:

a. misses no more than a total of three (3) payments in the thirty-six (36) month period covered by the agreement;

b. misses more than two (2) payments in any one calendar year, provided that such missed payments in a calendar year are not consecutive and that payments for the year are up-to-date by October 31st.

E. Terms of Residential Payment Plans

Each residential payment plan to which a utility customer is a party shall fall within a Step in either the Protected Customer Payment Plans or the Standard Customer Payment Plans. Absent a showing of special circumstances, as determined by the Division of Public Utilities and Carriers, a residential customer shall not be allowed to descend the Steps in the residential payment plans outlined below unless such a residential customer has paid 100% of his or her unpaid balance, in which case such customer shall be entitled to additional residential payment plans as outlined below. A residential customer's step will increase to Step 3 upon disenrollment from a Step 1 or Step 2 payment plan or upon termination of service. A residential customer's step will only increase above a Step 3 upon termination of service. (e.g., If a residential customer is disenrolled from a Step 3 Protected Customer Payment Plan, and his or her service is terminated, such customer must enroll in a Step 4 Protected Customer Payment Plan in order to restore service).

1. Protected Customer Payment Plans

A residential customer who qualifies for the financial hardship category or is a Protected Status Customer shall be allowed to enroll in one of the Protected Customer Payment Plans as outlined in this subsection. If such a customer pays 100% of his or her unpaid balance, such customer shall be entitled to additional residential payment plans, starting again at Step 1, as outlined below.

a. Prior to Termination of Utility Service

(1) A residential customer who qualifies for the financial hardship category or is a Protected Status Customer shall be allowed to enroll in a Step 1A Protected Customer Payment Plan, prior to being Eligible for Termination, or subsequent to being Eligible for Termination but prior to termination of utility service, so long as the customer has not defaulted from a previous Step 1A Protected Status Customer Payment Plan or a Step 1C Protected Status Customer Payment Plan in the past, unless the customer has paid 100% of his or her unpaid balance subsequent to defaulting on the prior payment plan. Upon enrollment, the customer must agree to pay either 1/12 of that customer's unpaid balance plus the current usage for each month during enrollment or 1/12 of that customer's unpaid balance plus 1/12 of the estimated prospective annual usage per month, whichever produces a lower monthly payment.

(2) The customer shall be entitled to move from a Step 1A Protected Customer Payment Plan to a Step 2 Protected Customer Payment Plan, a one-time payment plan re-negotiation, if the customer renegotiates his or her payment plan prior service termination. In addition, prior to termination of service, a LIHEAP recipient will have the opportunity to renegotiate his or her payment plan at the time when he or she receives a promissory note from the LIHEAP program or the utility receives the LIHEAP grant, whichever occurs first. Provided, however, that if the LIHEAP customer has already been enrolled in a Step 2 Protected Customer Payment Plan, the customer will only be allowed to enter into a payment plan wherein he or she agrees to pay 1/12 of his or her unpaid balance plus 1/12 of the estimated prospective annual usage per month.

b. After Termination of Utility Service

(1) A residential customer who qualifies for the financial hardship category or is a Protected Status Customer shall be allowed to enroll in a Step 1B Protected Customer Payment Plan after his or her service has been terminated, provided the customer was not previously disenrolled from a Step 1A payment plan prior to termination. In order to restore service, the customer must make an initial down payment of 25% of the customer's unpaid balance and agree to pay either 1/12 of the unpaid balance plus the current usage for each month during enrollment or 1/12 of the unpaid balance plus 1/12 of the customer's estimated prospective annual usage per month, whichever produces a lower monthly payment.

(2) The customer shall be entitled to move from a Step 1B Protected Customer Payment Plan to a Step 2 Protected Customer Payment Plan, a one-time payment plan re-negotiation, if the customer renegotiates his or her payment plan prior to service termination. In addition, prior to termination of service, a LIHEAP recipient will have the opportunity to renegotiate his or her payment plan at the time when he or she receives a promissory note from the LIHEAP program or the utility receives the LIHEAP grant, whichever occurs first. Provided, however, that if the LIHEAP customer has already been enrolled in a Step 2 Protected Customer Payment Plan, the customer will only be allowed to enter into a payment plan wherein he or she agrees to pay 1/12 of his or her unpaid balance plus 1/12 of the estimated prospective annual usage per month.

c. Six-Month Option

(1) A residential customer who qualifies for the financial hardship category or is a Protected Status Customer shall be allowed to enroll in a Step 1C Protected Customer Payment Plan designed to recover the customer's unpaid balance over a six-month term. To enroll in a six-month payment plan prior to termination of service, the customer shall be required to pay 1/6 of his or her unpaid balance plus the current usage for each month during enrollment. To enroll in a six-month payment plan following termination of service, the customer shall be required to make an initial down payment of 25% of the customer's unpaid balance and agree to pay 1/6 of the customer's unpaid balance plus the current usage for each month during enrollment. Successful completion of a six-month payment plan shall entitle the customer to enroll in any residential payment plan, including another six-month payment plan, appropriate for that customer.

(2) The customer shall be entitled to move from a Step 1C Protected Customer Payment Plan to a Step 2 Protected Customer Payment Plan, a one-time payment plan re-negotiation, if the customer renegotiates his or her payment plan prior service termination. In addition, prior to termination of service, a LIHEAP recipient will have the opportunity to renegotiate his or her payment plan at the time when he or she receives a promissory note from the LIHEAP program or the utility receives the LIHEAP grant, whichever occurs first. Provided, however, that if the LIHEAP customer has already been enrolled in a Step 2 Protected Customer Payment Plan, the customer will only be allowed to enter into a payment plan wherein he or she agrees to pay 1/12 of his or her unpaid balance plus 1/12 of the estimated prospective annual usage per month.

(3) A residential customer who is disenrolled from Step 1A, 1B, 1C or Step 2 of a Protected Customer Payment Plan and whose service is terminated must enroll in a Protected Customer Payment Plan at Step 3 in order to restore service. A residential customer who has not enrolled in a Step 1A, 1B or Step 2 Protected Customer Payment Plan and whose service is terminated must enroll in a Protected Customer Payment Plan at Step 3 in order to restore service. In order to restore service in either case, the customer must make an initial down payment of 25% of the customer's unpaid balance and agree to pay 1/12 of that customer's estimated prospective annual usage, plus 1/12 of the customer's unpaid balance per month.

(4) A residential customer who is disenrolled from a Step 3 Protected Customer Payment Plan and whose service is terminated must enroll in a Protected Customer Payment Plan at Step 4 in order to restore service. In order to restore service, the customer must make an initial down payment of 35% of the customer's unpaid balance and agree to pay 1/12 of that customer's estimated annual prospective usage plus 1/12 of the customer's unpaid balance per month. Prior to the termination of service, a customer who is disenrolled from a Step 3 Protected Customer Payment Plan would be allowed to enroll in a new Step 3 plan, provided the customer pays the required 25% down payment and agrees to pay 1/12 of that customer's estimated annual prospective usage plus 1/12 of the customer's unpaid balance per month.

(5) A residential customer who is disenrolled from a Step 4 Protected Customer Payment Plan and whose service is terminated must enroll in a Protected Customer Payment Plan at Step 5 in order to restore service. In order to restore service, the customer must make an initial down payment of 50% of the customer's unpaid balance and agree to pay 1/12 of that customer's estimated prospective annual usage plus 1/12 of the customer's unpaid balance per month. Prior to the termination of service, a customer who is disenrolled from a Step 4 Protected Customer Payment Plan would be allowed to enroll in a new Step 4 plan, provided the customer pays the required 35% down payment and agrees to pay 1/12 of that customer's estimated annual prospective usage plus 1/12 of the customer's unpaid balance per month.

(6) After a residential customer becomes disenrolled from a Step 5 Protected Customer Payment Plan or from any subsequent reasonable payment plan described herein, and following termination of service, the customer and company may establish a reasonable payment plan with a negotiated down payment of at least 50%. When establishing a reasonable payment plan, the company shall consider the income schedule of the customer, if offered by the customer, the customer's payment history, the size of the unpaid balance and current bill, the amount of time and reason for the delinquency and whether the delinquency was caused by unforeseen circumstances.

(7) The calculation of the total monthly payment under any Protected Customer Payment Plan shall be made after taking into account the customer's estimated annual payment from the public energy assistance programs, i.e., a written promise made to a utility on behalf of the customer.

d. The terms of each Step of the Protected Customer Payment Plans are as follows:

Step 1A Protected Customer Payment Plan Pre - termination	No down payment required Must pay each month for twelve months the sum of (1/12 of the unpaid balance plus the balance due for current usage) or (1/12 of the unpaid balance plus 1/12 of the prospective usage after reducing the amount due by any public energy assistance funds received or promised). Not available after disenrollment from a previous Step 1A, Step 1B, Step 1C or Step 2 Protected Customer Payment Plan.
Step 1B Protected Customer Payment Plan Post - Termination	Initial down payment of 25% required Must pay each month for twelve months the sum of (1/12 of the unpaid balance plus the balance due for current usage) or (1/12 of the unpaid balance plus 1/12 of the prospective usage after reducing the amount due by any public energy assistance funds received or promised). Not available to a customer who has become disenrolled from a Step 1A Payment Plan.
Step 1C Protected Customer Payment Plan Six Month Option	Pre -Termination No down payment required Must pay each month for 6 months the sum of (1/6 of the unpaid balance plus the amount due for current usage). Not available to a customer who has become disenrolled from a Step 1A Payment Plan. Post-Termination 25% down payment required Must pay each month for 6 months the sum of (1/6 of the unpaid balance plus the amount due for current usage).
Step 2 Protected Customer Payment Plan Pre-termination Re-negotiation	No down payment required Must pay each month for twelve months the sum of (1/12 of the unpaid balance plus the balance due for current usage) or (1/12 of the unpaid balance plus 1/12 of the prospective usage after reducing the amount due by any public energy assistance funds received or promised). LIHEAP recipients may renegotiate one additional time upon receipt of a LIHEAP promissory note or at the time when the utility receives the LIHEAP grant, whichever is first. Customer must pay each month for twelve months the sum of (1/12 of the unpaid balance plus 1/12 of the prospective use after reducing the amount due by the amount of the LIHEAP grant/promise). Only available prior to termination of service.
Step 3 Protected Customer Payment Plan	Initial down payment of 25% of the customer's unpaid balance required. Must pay each month for twelve months the sum of (1/12 of the estimated prospective average annual utility cost less the estimated annual payment from the public energy assistance programs) + (1/12 of the customer's unpaid balance).
Step 4 Protected Customer Payment Plan	Initial down payment of 35% of the customer's unpaid balance required. Must pay each month for twelve months the sum of (1/12 of the estimated prospective average annual utility cost less the estimated annual payment from the public energy assistance programs) + (1/12 of the customer's unpaid balance).
Step 5 Protected Customer Payment Plan	Initial down payment of 50% of the customer's unpaid balance required. Must pay each month for twelve months the sum of (1/12 of the estimated prospective average annual utility cost less the estimated annual payment from the public energy assistance programs) + (1/12 of the customer's unpaid balance).
Reasonable Payment Plan Based on Individual Case-By- Case Analysis	Customer and company may establish a reasonable payment plan with a negotiated down payment of at least 50%. When establishing a reasonable payment plan, the company shall consider the income schedule of the customer, if offered by the customer, the customer's payment history, the size of the unpaid balance and current bill, the amount of time and reason for the outstanding bill and whether the delinquency was caused by unforeseen circumstances.

2. Arrearage Forgiveness Payment Plan

A very low income customer who is terminated from gas and/or electric service or has received a notice of termination from the gas or electric company or has received a decision by the Division of Public Utilities and Carriers as being scheduled for actual shut-off of service on a date specified, shall be eligible one time to have electric and/or gas utility service restored providing the following conditions are met:

a. the customer pays twenty-five percent (25%) of the customer's unpaid balance;

b. the customer agrees to pay one thirty-sixth (1/36) of one half (1/2) of the customer's remaining balance per month for thirty-six (36) months;

c. the customer agrees to remain current with payments for current usage; and

d. the customer has shown, to the satisfaction of the division, that the customer is reasonably capable of meeting the payment schedule provided for by the provisions of §§ 1.10(E)(2)(a) and (b) of this Part. The restoration of service provided for by this subsection shall be a one-time right; failure to comply with the payment provisions set forth in this subsection shall be grounds for the customer to be dropped from the repayment program established by this subsection, and the balance due on the unpaid balance shall be due in full and shall be payable in accordance with these Regulations. A customer who completes the schedule of payments pursuant to this subsection shall have the balance of any arrearage forgiven, and the customer's obligation to the gas and/or electric company for such balance shall be deemed to be fully satisfied. The amount of the arrearage so forgiven shall be treated as bad debt for purposes of cost recovery by the gas or the electric company.

e. A customer terminated from service under the provisions of § 1.10(E)(2) of this Part shall be eligible for restoration of service in accordance with the applicable provisions of § 1.10(E)(1)(c) of this Part (Six Month Option).

3. Standard Customer Payment Plans

A residential customer who does not qualify for the financial hardship category and is not a Protected Status Customer shall be allowed to enroll in a Standard Customer Payment Plan as outlined in this subsection. Such a customer shall be limited to a maximum of three (3) residential payment plans in the Standard Customer Payment Plans before such customer may be required to pay up to 100% of his or her unpaid balance to restore service. If such a customer pays 100% of his or her unpaid balance, such customer shall be entitled to three (3) additional residential payment plans, as outlined in this subsection.

a. Prior to Termination of Utility Service

(1) A residential customer who does not qualify for the financial hardship category and is not a Protected Status Customer shall be allowed to enroll in a Step 1A Standard Customer Payment Plan prior to termination of utility service so long as the customer has not defaulted from a previous Step 1A Standard Customer Payment Plan or a Step 1B Standard Customer Payment Plan in the past, unless the customer has paid 100% of his or her unpaid balance subsequent to becoming disenrolled from the prior payment plan. Upon enrollment, the customer must agree to pay for twelve months, 1/12 of that customer's estimated prospective annual usage plus, for each of the first six months of the plan, 1/6 of the customer's unpaid balance.

(2) The customer shall be entitled to move from a Step 1A Standard Customer Payment Plan to a Step 2 Standard Customer Payment Plan, a one-time payment plan re-negotiation, if the customer renegotiates his or her payment plan prior to service termination.

(3) A residential customer who does not qualify for the financial hardship category and is not a Protected Status Customer who becomes disenrolled from a previous Step 1A or Step 2 Standard Customer Payment Plan must enroll in a Standard Customer Payment Plan at Step 3 in order to establish another payment plan.

b. Six-Month Option

(1) Prior to termination of utility service, a residential customer who does not qualify for the financial hardship category and is not a Protected Status Customer shall be allowed to enroll in a Step 1B Standard Customer Payment Plan designed to recover the customer's unpaid balance over a six-month term so long as he or she has not become disenrolled from a previous Step 1A Standard Customer Payment Plan or a Step 1B Standard Customer Payment Plan in the past, unless the customer has paid 100% of his or her unpaid balance subsequent to defaulting on the prior payment plan. To enroll in a six-month payment plan prior to termination of utility service, the customer shall be required to pay 1/6 of his or her unpaid balance plus the current usage for each month during enrollment. Successful completion of a six-month payment plan shall entitle the customer to enroll in any residential payment plan, including another six-month payment plan, appropriate for that customer

(2) The customer shall be entitled to move from a Step 1B Standard Customer Payment Plan to a Step 2 Standard Customer Payment Plan, a one-time payment plan re-negotiation, if the customer renegotiates his or her payment plan prior to service termination.

(3) A residential customer who does not qualify for the financial hardship category and is not a Protected Status Customer who becomes disenrolled from a previous Step 1B or Step 2 Standard Customer Payment Plan must enroll in a Standard Customer Payment Plan at Step 3 in order to establish another payment plan.

c. After Termination of Utility Service

(1) In order to restore service after termination, a residential customer must enroll in a Step 3 Standard Customer Payment Plan or pay 100% of his or her unpaid balance. In order to enroll in a Step 3 Standard Customer Payment Plan and have service restored, the customer must make an initial down payment of 60% of the customer's unpaid balance and agree to pay for twelve months, 1/12 of that customer's estimated prospective annual usage plus, for each of the first three months of the plan, 1/3 of the customer's unpaid balance.

(2) A residential customer who is disenrolled from a Step 3 Standard Customer Payment Plan and whose service has been terminated, may be required to pay up to 100% of the customer's unpaid balance in order to have service restored. Prior to the termination of service, a customer who is disenrolled from a Step 3 Standard Customer Payment Plan would be allowed to enroll in a new Step 3 plan, provided the customer pays the required 60% down payment and agrees to pay 1/12 of that customer's estimated annual prospective usage plus 1/3 of the customer's unpaid balance per month for the first 3 months of the plan.

d. The terms of each Step of the Standard Customer Payment Plans are as follows:

Step 1A Standard Customer Payment Plan Pre-Termination	No down payment required. Must pay each month the sum of (1/12 of the estimated prospective annual utility cost) + (1/6 of the customer's unpaid balance for the first 6 months of the plan). Not available to customers after termination of service or after disenrollment from a previous Step 1A or Step 1B plan.
Step 1B Standard Customer Payment Plan Pre-Termination Six Month Option	No down payment required. Must pay each month the sum of (1/6 of the unpaid balance plus the amount due for current usage). Not available to customers after termination of service or after disenrollment from a previous Step 1A or Step 1B plan.
Step 2 Standard Customer Payment Plan Pre-Termination Re-negotiation	No down payment required. Must pay each month the sum of (1/12 of the estimated prospective average annual utility cost) + (1/6 of the customer's unpaid balance for the first 6 months of the plan). Not available to customers after termination of service.
Step 3 Standard Customer Payment Plan Post-Termination	Initial down payment of 60% of the customer's unpaid balance required. Must pay each month the sum of (1/12 of the estimated prospective annual utility cost) + (1/3 of the customer's unpaid balance for the first 3 months of the plan).
Step 4 Post-Termination 100% may be required	A customer may be required to pay up to 100% of the customer's unpaid balance to restore service.

F. Record Keeping

Each public utility shall maintain records of each residential customer's payment history, and each residential customer's enrollment in, and disenrollment from, utility's residential payment plans. Such records shall be used to determine the Step of the Protected Customer Payment Plans or the Standard Customer Payment Plans, if any, at which a residential customer is eligible to enroll. Such records may be maintained using the utility's billing system.

810 R.I. Code R. 810-RICR-10-00-1.10