Chapter PSC 185

PSC 185.33(19)(c) (c) The rate of interest to be paid shall be calculated in the same manner as provided for in s. PSC 185.36 (9) (b). Interest shall be paid from the date a refund is determined to be due until the date the overpayment is refunded. Interest shall be calculated on the net amount overpaid in each calendar year.

PSC 185.33(19)(d) (d) Nothing in this chapter shall prevent the commission or its staff from requiring the payment of interest on amounts returned to customers in those instances where the commission or its staff finds that such payment is necessary for a fair and equitable resolution of an individual complaint.

PSC 185.33 History History: Cr. Register, January, 1997, No. 493, eff. 2-1-97; CR 01-033: am. (10) (a) and (13) (b), renum. (18) (c) to be (18) (d), cr. (18) (c), Register October 2001 No. 550, eff. 11-1-01; correction in (19) (c) made under s. 13.93 (2m) (b) 7., Stats., Register October 2001 No. 550; CR 11-039: cr. (1m), renum. (2) to 185.22 (5) (b) Register July 2012 No. 679, eff. 8-1-12; CR 13-048: r. (18) Register July 2014 No. 703, eff. 8-1-14.

PSC 185.34 PSC 185.34 Adjustment of bills (ROM).

PSC 185.34(1) (1) Stopped rom. A stopped ROM is defined as one that has recorded zero consumption during the last meter reading period. The consumption that was measured by the base meter and not recorded by the remote register shall be backbilled as current consumption. The usage backbilled as current consumption shall not exceed the customer’s average usage per billing period based on the latest 12-months usage. Any amount greater than this usage shall be backbilled pursuant to sub. (2).

PSC 185.34(2) (2) Stopped and under-registering rom. Unrecorded ROM consumption (base meter reading less ROM reading) resulting from sub. (1) or an under-registering ROM shall be prorated from the date of the last base meter reading. Pursuant to s. 196.635, Stats., the utility may backbill for prorated amounts associated with the last 24 months.

PSC 185.34(3) (3) Over-registering rom. A ROM over registration (OM reading less base meter reading) shall be prorated from the date of the last base meter reading. The utility shall refund prorated amounts associated with the period since the meter was installed or last tested, not to exceed the last 6 years.

PSC 185.34 History History: Cr. Register, January, 1997, No. 493, eff. 2-1-97.

PSC 185.35 PSC 185.35 Adjustment of bills.

PSC 185.35(1) (1) Whenever a positive displacement meter is found upon test to have an average percent registration of more than 102 and whenever a compound or current type meter is found upon test to have an average percent registration of more than 103, a recalculation of bills for service shall be made for the period of inaccuracy assuming an inaccuracy equal to the average percent error in excess of 100.

PSC 185.35(2) (2) For the purposes of this rule, the average percent registration shall be the average percent registration for those normal test points which are within the normal test flow limits of the meter, except that the test point within the “change-over” range for compound meters shall be ignored. (For positive displacement meters the light flow test point would not be considered.)

PSC 185.35(3) (3) If the period of inaccuracy cannot be determined, it shall be assumed that the full amount of inaccuracy existed during the last half of the period since the meter was installed or last tested.

PSC 185.35(4) (4) Where a meter in service is found not to register or is found to have an average percent registration of less than 97, the utility may bill the customer for the amount the test indicates has been undercharged for the period of inaccuracy, which period shall not exceed the last 24 months the meter was in service unless otherwise authorized by the commission after investigation. No backbill shall be sanctioned if the customer has questioned the meter’s accuracy and the utility has failed within a reasonable time to check it.

PSC 185.35(5) (5) If the recalculated bills indicate that more than $5.00 is due an existing customer or $10.00 is due a person no longer a customer of the utility, the full amount of the calculated difference between the amount paid and the recalculated amount shall be refunded to the customer. The refund to an existing customer may be in cash or as credit on a bill. If a refund is due a person no longer a customer of the utility, a notice shall be mailed to the last known address and the utility shall, upon request made within 6 months, refund the amount due.

PSC 185.35(6) (6) Subject to the utility’s written rules setting forth the method of determining a reduced rate, if a leak unknown to the customer is found in an appliance or the plumbing, the utility is encouraged to estimate the water wasted and bill for it at a reduced rate not less than the utility’s cost. No such adjustment shall be made for water supplied after the customer has been notified and has had an opportunity to correct the condition.

PSC 185.35(7) (7) Where, because of some deficiency in the utility’s portion of the facilities and at the request of the utility, a customer permits a stream of water to flow to prevent freezing of the service or main, the utility shall adjust the bill for the excess consumption which results.

PSC 185.35(8) (8) A record shall be kept of the number of refunds and charges made because of inaccurate meters, misapplication of rates, and erroneous billing. A summary of the record for the previous calendar year shall, upon request, be submitted to the commission.

PSC 185.35 History History: Cr. Register, January, 1997, No. 493, eff. 2-1-97.

PSC 185.36 PSC 185.36 Deposits for residential service.

PSC 185.36(1) (1) New residential service.

PSC 185.36(1)(a) (a) A utility shall not require a deposit or other guarantee as a condition of new residential service unless a customer has an outstanding account balance with any Wisconsin gas, electric, water, or sewer utility which accrued within the last 6 years and for which there is no agreement or arrangement for payment being honored by the customer, and which at the time of the request for new service remains outstanding and not in dispute. (See s. PSC 185.39.)

PSC 185.36(1)(b) (b) A deposit under this section shall not be required if the customer provides the utility with information showing that the customer’s gross quarterly income is at or below 200% of federal income poverty guidelines.

PSC 185.36(1)(c) (c) A utility shall inform the customer of the customer’s right to enter into a deferred payment agreement for payment of the deposit amount and of the customer’s right to appeal any deposit request or amount required under this section to the commission.

PSC 185.36(2) (2) Existing residential service. A utility may require a deposit as a condition of residential service. When the utility requests a deposit of an existing residential customer, the customer shall be informed of the customer’s right to provide a cash deposit, a guarantee, or to establish a deferred payment agreement. The customer shall be given 30 days to provide the deposit, guarantee, or enter into a deferred payment agreement for the deposit amount. A deposit under this section shall not be required if the customer provides the utility with information showing that the customer’s gross quarterly income is at or below 200% of the federal income poverty guidelines. The utility may require a deposit if any of the following circumstances apply:

PSC 185.36(2)(a) (a) The utility has disconnected the customer’s service within the last 12-month period for violation of the utility’s filed rules or for nonpayment of a delinquent service account not currently in dispute;

PSC 185.36(2)(b) (b) Subsequent credit information indicates that the initial application for service was falsified or incomplete to the extent that a deposit would be required under this section.

PSC 185.36(3) (3) Guarantee terms and conditions.

PSC 185.36(3)(a) (a) A utility may accept, in lieu of a cash deposit for new or existing residential service, a contract signed by a guarantor satisfactory to the utility where payment of a specified sum not exceeding the cash deposit requirement is guaranteed, or where the guarantor accepts responsibility for payment of all future bills. If the guarantor accepts responsibility for payment of future bills, the utility shall notify the customer in writing of the agreement and of the customer’s right to refuse such an agreement. The term of the contract shall be for no longer than one year, but it shall automatically terminate after the residential customer has closed the account with the utility, or on the guarantor’s request upon a 30-day written notice to the utility.

PSC 185.36(3)(b) (b) Upon termination of a guarantee contract, or whenever the utility deems the guarantee insufficient as to amount of surety, a cash deposit or a new or additional guarantee may be required upon a 20-day written notice to the customer. The service of any customer who fails to comply with these requirements may be disconnected upon an 8-day written notice.

PSC 185.36(3)(c) (c) The utility shall mail the guarantor copies of all disconnect notices sent to the customer whose account has been guaranteed, unless the guarantor waives such notice in writing.

PSC 185.36(4) (4) Deferred payment. In lieu of cash deposit or guarantee, an applicant for new residential service who has an outstanding account balance accrued within the last 6 years with the same utility shall have the right to receive service from that utility under a deferred payment agreement, as defined in s. PSC 185.38 for the outstanding account. A customer who defaults on this deferred payment agreement may be required by the utility to furnish a deposit for the remaining balance.

PSC 185.36(5) (5) Written explanation. A utility shall provide a written explanation of why a deposit or guarantee is being required for a residential account. The explanation shall include notice of the customer’s right to appeal any deposit request or amount required under this section to the commission.

PSC 185.36(6) (6) Reasonableness of deposit. When requesting a deposit from a residential customer, the utility shall consider the customer’s ability to pay in determining the reasonableness of its request, including the following factors:

PSC 185.36(6)(a) (a) Size of the delinquent account;

PSC 185.36(6)(b) (b) Customer’s payment history;

PSC 185.36(6)(c) (c) Time that the debt has been outstanding;

PSC 185.36(6)(d) (d) Reasons why the debt has been outstanding;

PSC 185.36(6)(e) (e) Any other relevant factors concerning the circumstances of the customer, such as household size, income, and reasonable expenses.

PSC 185.36(7) (7) Amount of deposit. The maximum deposit for a new or existing residential account shall not exceed the highest estimated gross bill for any consecutive billing period (not to exceed 4 months) selected by the utility.

PSC 185.36(8) (8) Refusal or disconnection of service. Residential service may be refused or disconnected for failure to pay a deposit request under the procedures in s. PSC 185.37.

PSC 185.36(9) (9) Interest.

PSC 185.36(9)(a) (a) Deposits for residential accounts shall bear interest payable from the date a deposit is made to the date it is applied to an account balance or is refunded.

PSC 185.36(9)(b) (b) The interest rate to be paid shall be subject to change annually on a calendar year basis. The commission shall determine the rate of interest to be paid on deposits held during the following calendar year and notify the utility of that rate by December 15 of each year. The rate shall be equal to the weekly average yield of one-year United States treasury securities adjusted for constant maturity for the week ending on or after December 1 made available by the federal reserve board, rounded to the nearest tenth of one percent.

PSC 185.36(9)(c) (c) The rate of interest set by the commission shall be payable on all deposits. The utility shall calculate the interest earned on each deposit at the time of refund and at the end of each calendar year. The interest rate in a calendar year shall apply to the amount of the deposit and to all interest accrued during the previous year, for the fraction of the calendar year that the deposit was held by the utility.

PSC 185.36(10) (10) Refund. The utility shall refund the deposit of a residential customer after 12 consecutive months of prompt payment.

PSC 185.36(11) (11) Review. The utility shall not continue to require a cash deposit for a residential account unless a deposit is permitted under the provisions of sub. (4) or (10).

PSC 185.36(12) (12) Method of refund. Any deposit or portion refunded to a residential customer shall be refunded by check unless both the customer and the utility agree to a credit on the regular billing, or unless sub. (13) or (14) applies.

PSC 185.36(13) (13) Refund at termination of service. On termination of residential service, the utility shall credit the deposit, with accrued interest, to the customer’s final bill and return the balance within 30 days of issuing the final bill.

PSC 185.36(14) (14) Arrearages. An arrearage owed by a residential customer may be deducted from the customer’s deposit under any of the following conditions:

PSC 185.36(14)(a) (a) Except as provided in par. (c), a deposit may be used by the utility only to satisfy an arrearage occurring after the deposit was made;

PSC 185.36(14)(b) (b) If the utility deducts an arrearage from a customer deposit, it may require the customer to bring the deposit up to its original amount. Failure of the customer to do so within 20 days of mailing a written request for payment is a ground for disconnection;

PSC 185.36(14)(c) (c) When a deposit is refunded to the customer, the utility may first deduct any arrearage owed by the customer, whether the arrearage arose prior to or after the date of the deposit.

PSC 185.36 History History: Cr. Register, January, 1997, No. 493, eff. 2-1-97.

PSC 185.361 PSC 185.361 Deposits for nonresidential service.

PSC 185.361(1) (1) New nonresidential service. If the credit of an applicant for nonresidential service has not been established satisfactorily to the utility, the utility may require the applicant to post deposit. The utility shall notify the applicant within 10 days of the request for service as to whether a deposit shall be required. The 10-day period shall begin from the date the applicant provides all information requested under s. PSC 185.305 (2) to the utility. If no request for a deposit is made within this period, no deposit shall be required, except under the provisions of sub. (2). If a request for a deposit is made, the applicant shall be given at least 30 days to provide payment, or guarantee, or to establish a deferred payment agreement.

PSC 185.361(2) (2) Existing nonresidential service. The utility may require an existing nonresidential customer to furnish a deposit if any of the following apply:

PSC 185.361(2)(a) (a) The customer has not made prompt payment of all bills within the last 24 months;

PSC 185.361(2)(b) (b) The utility has disconnected the customer’s service within the last 12-month period for violation of the utility’s filed rules or for nonpayment of a delinquent service account not currently in dispute;

PSC 185.361(2)(c) (c) Subsequent credit information indicates that the initial application for service was falsified or incomplete to the extent that a deposit would be required under this section;

PSC 185.361(2)(d) (d) When the utility requests a deposit of an existing customer, the customer shall have 30 days to provide the deposit, guarantee, or to establish a deferred payment agreement.

PSC 185.361(3) (3) Considerations for deposit. In determining whether an applicant for nonresidential service has satisfactorily established credit, the utility shall inform the applicant that it shall consider any or all of the following factors, provided by the applicant, before requiring a security deposit:

PSC 185.361(3)(a) (a) Credit information from a credit reporting service;

PSC 185.361(3)(b) (b) Letter of credit from a financial institution or another utility;

PSC 185.361(3)(c) (c) Applicant’s business characteristics, including type of business, estimated size of the utility bills, previous bill payment history, and applicant’s business experience;

PSC 185.361(3)(d) (d) Assets of the business;

PSC 185.361(3)(e) (e) The financial condition of the business, as indicated in a financial statement.

PSC 185.361(4) (4) Guarantee terms and conditions.

PSC 185.361(4)(a) (a) The utility may accept, in lieu of a cash deposit for new or existing nonresidential service, a contract signed by a guarantor satisfactory to the utility where payment of a specified sum not exceeding the cash deposit requirement is guaranteed. The term of such contract shall be for no longer than 2 years, but it shall automatically terminate after the customer has closed its account with the utility, or at the guarantor’s request, on a 30-day written notice to the utility.

PSC 185.361(4)(b) (b) On termination of a guarantee contract, or whenever the utility deems the amount of surety insufficient, a cash deposit or a new or additional guarantee may be required on a 20-day written notice to the customer. The service of a customer who fails to comply with these requirements may be disconnected on a 10-day written notice, subject to the establishment of a deferred payment agreement for the deposit.

PSC 185.361(4)(c) (c) The utility shall mail the guarantor copies of all disconnect notices sent to the customer whose account has been guaranteed, unless the guarantor waives such notice in writing.

PSC 185.361(5) (5) Written explanation.

PSC 185.361(5)(a) (a) A utility shall provide a written explanation of why a deposit or guarantee is being required for nonresidential service. The explanation shall include notice of the customer’s right to appeal any deposit request or amount required under this section to the commission.

PSC 185.361(5)(b) (b) The written explanation shall also inform the customer that if, after 12 months of utility service, the deposit amount is greater than necessary based on actual consumption, the customer may request refund of the difference between the 2 amounts.

PSC 185.361(6) (6) Refusal or interruption of service. Nonresidential service may be refused or disconnected for failure to pay a deposit request, subject to the s. PSC 185.37 pertaining to disconnection and refusal of service.

PSC 185.361(7) (7) Amount of deposit. The maximum deposit for a new account shall not exceed the highest estimated gross bill for any consecutive billing period selected by the utility (not to exceed 4 months). If after a 12-month period the deposit amount is shown to be greater than warranted based on actual consumption, the utility shall at the customer’s request refund the difference between the 2 amounts plus interest.

PSC 185.361(8) (8) Interest.

PSC 185.361(8)(a) (a) Deposits for nonresidential service shall bear interest from the date a deposit is made to the date it is applied to an account balance or refunded.

PSC 185.361(8)(b) (b) The interest rate to be paid shall be subject to change annually on a calendar basis. The commission shall determine the rate of interest to be paid on deposits held during the following calendar year and notify the utility of the rate by December 15 of each year. The rate shall be equal to the weekly average yield of one-year United States treasury securities adjusted for constant maturity for the week ending on or after December 1 made available by the federal reserve board, rounded to the nearest tenth of one percent.

PSC 185.361(8)(c) (c) The rate of interest set by the commission shall be payable on all deposits. The utility shall calculate the interest earned on each deposit at the time of the refund and at the end of each calendar year. The interest rate in a calendar year shall apply to the amount of the deposit and to all interest accrued during the previous year, for the fraction of the calendar year that the deposit was held by the utility.

PSC 185.361(9) (9) Time of refund. The deposit of a customer shall be refunded after 24 consecutive months of prompt payment.

PSC 185.361(10) (10) Method of refund. Any deposit or portion thereof refunded to a customer shall be refunded by check unless both the customer and the utility agree to a credit on the regular billing, or unless sub. (11) or (12) applies.

PSC 185.361(11) (11) Refund at termination of service. Upon termination of service, the deposit with accrued interest, shall be credited to the final bill, and the balance shall be returned within 30 days of issuing the final bill.

PSC 185.361(12) (12) Arrearages. An arrearage owed by a customer may be deducted from the customer’s deposit under the following conditions:

PSC 185.361(12)(a) (a) Except as provided in par. (c), a deposit may be used by the utility only to satisfy an arrearage occurring after the deposit was made;

PSC 185.361(12)(b) (b) If the utility deducts an arrearage from a customer deposit, it may require the customer to bring the deposit up to its original amount. Failure of the customer to do so within 20 days of mailing a written request for payment is a ground for disconnection;

PSC 185.361(12)(c) (c) When a deposit is refunded to the customer, the utility may first deduct any arrearage owed by the customer, whether the arrearage arose prior to or after the date of the deposit.

PSC 185.361 History History: Cr. Register, January, 1997, No. 493, eff. 2-1-97; CR 01-033: am. (4) (b), Register October 2001 No. 550, eff. 11-1-01; correction in (1) made under s. 13.92 (4) (b) 7., Stats., Register July 2014 No. 703.

PSC 185.37 PSC 185.37 Disconnection and refusal of service.

PSC 185.37(1) (1)