H 753 — An act relating to utility service disconnections and ratepayer protections

BILL AS PASSED BY THE HOUSE H.753 Page 1 of 26 H.753 AnIntroduced actby relatingRepresentatives toTorre utilityof serviceMoretown disconnections and ratepayerMorrow protectionsof ItWeston isReferred herebyto enactedCommittee byon theDate: General Assembly of the State of Vermont:

Subject:

Utilities;

residential ratepayers;

involuntary service disconnections;

consumer protections Statement of purpose of bill as introduced:

This bill proposes to require the Public Utility Commission to adopt by rule enhanced residential ratepayer protections with respect to involuntary utility service disconnections.

An act relating to utility service disconnections and ratepayer protections It is hereby enacted by the General Assembly of the State of Vermont:

30 V.S.A.

§ 209(b) is amended to read:

(b) Required rules.

(1) Notwithstanding the provisions of section 218 of this chapter, the Public Utility Commission shall, under 3 V.S.A.

chapter 25, adopt rules applicable to companies subject to this chapter that:

BILL AS PASSED BY THE HOUSE H.753 Page 2 of 6 (1)(A) regulate or prescribe terms and conditions of extension of utility service to customers or applicants for service including:

(A)(i) the conditions under which a deposit may be required, if any;

(B)(ii) the extension of service lines;

(C)(iii) the terms of payment of any required deposit;

and (D)(iv) the return of any deposit;

(2)(B) regulate or prescribe the grounds upon which the companies may disconnect or refuse to reconnect service to customers;

and (3)(C) regulate and prescribe reasonable procedures used by companies in disconnecting or reconnecting services and billing customers.

(2) The Public Utility Commission shall amend Rule 3.300, which governs the disconnection of residential gas, electric, and water service, to further specify that:

(A) a certificate from a physician or other licensed health care provider certifying that a ratepayer or resident within the ratepayer’s household would suffer an immediate and serious health hazard by the disconnection of gas, electric, or water service, or by failure to reconnect such service, shall prevent disconnection or require reconnection, as applicable, and shall remain in effect for the time period specified in the certification unless the Commission rules otherwise;

and BILL AS PASSED BY THE HOUSE H.753 Page 3 of 6 (B) no gas, electric, or water utility may involuntarily disconnect service to any residential ratepayer during periods of extreme heat, as defined by the Commission.

(3) The Public Utility Commission shall adopt a rule requiring each gas, electric, and water utility to establish a strategic and realistic plan for achieving the lowest prudently feasible number of monthly and annual involuntary residential service disconnections in the utility’s service territory and to include such plan in a new or revised Service Quality and Reliability Plan, which the utility shall submit to the Commission for approval.

Sec.

3.

30 V.S.A.

§ 218d(a) is amended to read:

(a) Notwithstanding section 218 and sections 225–227 of this title, upon petition of an electric or natural gas company, upon request of the Department of Public Service, or on its own initiative, the Public Utility Commission may, after opportunity for hearing, approve alternative forms of regulation for an electric or natural gas company;

provided, however, in the case of a municipal plant or department formed under local charter or chapter 79 of this title or an electric cooperative formed under chapter 81 of this title, any alternative forms of regulation approved by the Commission shall also be approved by a majority of the voters of a municipality or cooperative voting upon the question at a duly warned annual or special meeting held for that purpose.

BILL AS PASSED BY THE HOUSE H.753 Page 4 of 6 Before doing so, the Commission shall find that the proposed form of alternative regulation will:

(1) establish a system of regulation in which such companies have clear incentives to provide least cost energy service to their customers;

(2) provide just and reasonable rates for service to all classes of customers;

(3) deliver safe and reliable service;

(4) offer incentives for innovations and improved performance that advance state State energy policy such as increasing reliance on Vermont-based renewable energy and decreasing the extent to which the financial success of distribution utilities between rate cases is linked to increased sales to end use customers and may be threatened by decreases in those sales;

(5) promote improved quality of service, reliability, and service choices, including a reduction in the number of monthly and annual involuntary disconnections to the lowest prudently feasible number in a company’s service territory;

(6) encourage innovation in the provision of service;

(7) establish a reasonably balanced system of risks and rewards that encourages the company to operate as efficiently as possible using sound management practices;

and BILL AS PASSED BY THE HOUSE H.753 Page 5 of 6 (8) provide a reasonable opportunity, under sound and economical management, to earn a fair rate of return, provided such opportunity must be consistent with flexible design of alternative regulation and with the inclusion of effective financial incentives in such alternatives.

Sec.