Chapter PSC 185

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) 

PSC 185.37(1)(a) (a) In no circumstances shall the cumulative time before notice of disconnection be less than 20 days after the date of issuance of the bill. An account may be deemed delinquent for the purpose of disconnection after such period has elapsed.

PSC 185.37(1)(b) (b) At least 10 calendar days prior to disconnection, the utility shall give a written notice of disconnection upon a form approved by the commission and which conforms to the requirements of sub. (11) unless excepted elsewhere.

PSC 185.37(1)(c) (c) When a customer, either directly or through the commission, disputes a disconnection notice, the utility shall investigate any disputed issue and shall attempt to resolve that issue. During this investigation, utility service shall not be disconnected over this matter.

PSC 185.37(1)(d) (d) If a disputed issue cannot be resolved pursuant to s. PSC 185.39 (1), the utility shall inform the customer of the right to contact the commission.

PSC 185.37(1m) (1m) Prior to disconnecting a jointly-metered property containing more than one rental dwelling unit and where service is in the property owner’s or manager’s name, the utility shall first make an attempt to transfer the debt to the property owner’s or manager’s residence or office service. If a transfer is permitted under sub. (7) (a) the utility shall pursue available collection efforts at the owner’s or manager’s property prior to disconnecting the jointly-metered property.

PSC 185.37(2) (2) Utility service may be disconnected or refused for any of the following reasons:

PSC 185.37(2)(a) (a) Failure to pay a delinquent account or failure to comply with the terms of a deferred payment agreement (see s. PSC 185.38);

PSC 185.37(2)(am) (am) Delinquency in payment for service received by a previous account holder or customer at the premises to be served, if an account is transferred to a new account holder or customer and the previous account holder or customer continues to be an occupant of the dwelling unit to be served.

PSC 185.37(2)(b) (b) Failure to pay for an outstanding account balance with the utility owing at a previous address and for which there is no agreement or arrangement for payment and it is not in dispute but remains outstanding;

PSC 185.37(2)(c) (c) Failure to comply with deposit or guarantee arrangements as specified in s. PSC 185.36 or 185.361;

PSC 185.37(2)(d) (d) Diversion of service around the meter;

PSC 185.37(2)(e) (e) Refusal or failure to permit authorized utility personnel to read the meter at least once every 4 months where the utility bills monthly or bimonthly, or at least once every 9 months where the utility bills quarterly or less frequently than quarterly. The 4- or 9- month period begins with the date of the last meter reading;

PSC 185.37(2)(f) (f) Refusal or failure to permit authorized utility personnel access to the base meter;

PSC 185.37(2)(g) (g) Violation of the utility’s rules pertaining to the use of service in a manner which interferes with the service of others or to the operation of nonstandard equipment, if the customer has first been notified and provided with reasonable opportunity to remedy the situation;

PSC 185.37(2)(h) (h) Failure to comply with Wisconsin statutes, commission rules, or commission orders pertaining to utility service;

PSC 185.37(2)(i) (i) Failure to pay costs or fees incurred by and awarded to the utility by a court of law, for pursuit of collection of bills, or failure to pay extraordinary collection charges as allowed and specified in the utility’s tariffs filed with the commission;

PSC 185.37(2)(j) (j) Failure to comply with the utility’s rules or if the customer uses a device that unreasonably interferes with communications or signal services used for reading meters;