AN ACT Relating to residential utility service; adding a new section to chapter 24.03 RCW; adding a new section to chapter 24.06 RCW; adding a new section to chapter 35.21 RCW; adding a new section to chapter 54.16 RCW; adding a new section to chapter 80.28 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. Residential customers of all investor-owned electric and gas companies are protected against improper termination of service by detailed regulations issued under Title 80 RCW. Residential customers of public utility districts, municipal electric utilities, and electric cooperatives have no such uniform protection. Such customers have a significant property interest in continued electric service as owners of the organizations providing service. No rational basis exists for those customers to receive lesser protection against wrongful termination of electric service than similarly situated customers of investor-owned utilities. Electric and natural gas service is essential to the well-being of many citizens. Termination of electric or natural gas service may endanger health.

The legislature therefore finds that it would serve the public interest to afford protection against improper termination of residential electric and natural gas service to customers of public utility districts, municipal electric utilities, and electric cooperatives. To assure equal protection in the future, protection against improper termination of electric or natural gas service is applicable to customers of both consumer-owned and investor-owned utilities.

NEW SECTION. Sec. 2. A new section is added to chapter 54.16 RCW to read as follows:

(1) "Utility," as used in this section, means any public utility district that provides electric service to residential customers.

(2) Service may be discontinued by a utility for any of the following reasons:

(a) For the nonpayment of bills;

(b) When customer's wiring or equipment does not meet the utility's standards, or fails to comply with other applicable codes and regulations;

(d) If the premises are vacated by a customer;

(e) For nonpayment of any proper charges;

(f) For refusal to grant reasonable access to premises;

(g) For fraudulently obtaining or using service; or

(h) For failure to keep any agreed upon payment plan.

(3) Except in case of danger to life or property, fraudulent use, impairment of service, or violation of law, no utility shall discontinue service unless the following conditions are met:

(a) Each utility shall provide written notice of disconnection served on the customer either by mail or, at its option, by personal delivery of the notice to the customer's address. If such written notice of disconnection is for nonpayment during the winter period, the utility shall advise the customer of the payment plan which is available under RCW 54.16.285, payment arrangements, and responsibilities. If a mailed notice is elected, service shall not be disconnected prior to the eighth business day following mailing of the notice. If personal delivery is elected, disconnection shall not be permitted prior to 5 p.m. of the first business day following delivery. Delivered notice is effective if handed to a person of apparent competence in the residence or, if a business account, a person employed at the place of business of the service customer. If no person is available to receive notice, notice is served if attached to the primary door of the residence unit or business office at which service is provided. If service is not discontinued within ten working days of the first day on which disconnection may be effected, a new notice shall be required before the service can be discontinued.

(b) (i) Before effecting disconnection of service, a utility shall make a good faith, bona fide effort to reach the customer in person or by telephone to advise the customer of the pending disconnection and the reasons therefor.

(ii) When the service address is different from the billing address, the utility shall in all instances prior to effecting discontinuance of service upon its own initiative provide notice to the service address unless the utility has verified that the customer of record and the service user are the same party. Discontinuance of service shall not occur earlier than five business days after provision of notice to the service address.

(iii) When a customer of record orders termination of service at a service address, and the utility through its representative discovers that the actual service user at the service address has no prior notice of such termination, the utility shall delay termination for at least one complete business day following provision of actual notice to the service user.

(iv) All notices of delinquency or pending disconnection shall detail procedures pertinent to the situation and provide notice of means by which the customer can make contact with the utility to resolve any differences.

(c) Except in case of danger to life or property, no disconnection shall be accomplished on Saturdays, Sundays, legal holidays, or on any other day on which the utility cannot reestablish service on the same or following day.

(d) When a utility employee is dispatched to disconnect service, that person shall be required to accept payment of a delinquent account at the service address if tendered in cash.

(e) Where service is provided through a master meter, or where the utility has reasonable grounds to believe service is to other than the customer of record, the utility shall undertake all reasonable efforts to inform occupants of the service address of the impending disconnection.

(f) Service may not be disconnected while a customer is pursuing any remedy or appeal, provided any amounts not in dispute are paid when due.

(g) (i) When a utility has, or has had, cause to disconnect utility service, the utility shall postpone termination of service or will reinstate service to a residential customer for thirty days from the date of receipt of a certificate by a licensed physician which states that termination of electric service will aggravate an existing medical condition or create a medical emergency for the customer, a member of the customer's family, or other permanent resident of the premises where service is rendered. When service is reinstated, payment of a reconnection charge or a deposit shall not be required prior to such reinstatement of service.

(ii) This certificate of medical emergency must be in writing and show clearly the name of the person whose medical emergency would be adversely affected by termination, the nature of the medical emergency, and the name, title, and signature of the person certifying the medical emergency. If a notice of disconnection has been issued and the customer notifies the utility that a medical emergency exists, the customer shall be allowed five business days from when the utility is so notified to provide the utility with a certificate of medical emergency. If this five-day period extends beyond the time set for discontinuance of service, the utility shall extend the time of discontinuance until the end of the five-day period. If service has been discontinued and the customer requests reconnection of service due to a medical emergency, the utility shall reconnect service and the customer shall be allowed five business days to provide the utility with a certificate of medical emergency. If the utility does not receive a certificate of medical emergency within the time limits set in this section, the utility may discontinue service following an additional twenty-four-hour notice to the premises.

(h) Any customer may designate a third party to receive notice of termination or other matters affecting the provision of service. The utility shall offer all customers the opportunity to make such designation. When the utility discovers that a customer appears to be unable to comprehend the impact of a termination of service, the utility shall consider an appropriate social agency to be the third party. In either case, the utility shall not effect termination until five business days after provision of notice to the third party. Utilities shall discover which social agencies are appropriate and willing to receive such notice, and the name or title of the person able to deal with the termination situation.

(4) Payment of any delinquent amounts to a designated payment agency of the utility shall constitute payment to the utility, if the customer informs the utility of such payment and the utility verifies such payment.

(5) Service shall be restored when the causes of discontinuance have been removed and when payment of all proper charges due from the customer, including any proper deposit, has been made.

(6) A utility may make a charge for restoring service when service has been discontinued for nonpayment of bills.

(7) Residential customers shall be notified that the utility, upon contact by a customer whose account is delinquent or who desires to avoid a delinquency, will make extended payment arrangements appropriate for both the customer and the utility. If the customer fails to propose payment terms acceptable to the utility, the utility shall advise a customer of the payment plan set forth in RCW 54.16.285, if appropriate.

(8) (a) A utility shall not refuse or discontinue service on account of the unpaid bill of a prior tenant.

(b) A utility may not permanently deny service because of a customer's prior obligation to the utility.

(9) (a) An applicant for residential service may establish credit by demonstrating to the utility any one of the following factors:

(i) Prior service with the utility in question during the previous twelve months for at least six consecutive months during which service was rendered and was not disconnected for failure to pay, and no more than one delinquency notice was served upon the customer;

(ii) Prior service with a utility of the same type as that sought with a satisfactory payment record as demonstrated in (a)(i) of this subsection: PROVIDED, That the reference may be quickly and easily checked, and the necessary information is provided;

(iii) Full-time, consecutive employment during the entire twelve months next previous to the application for service, with no more than two employers, current employment, or a regular source of income;

(iv) Ownership of a significant legal interest in the premises to be served;

(v) Furnishing of a satisfactory guarantor to secure payment of bills for service requested in a specified amount not to exceed the amount of cash deposit which may be required;

(vi) Demonstration that applicant is a satisfactory risk by appropriate means including, but not limited to, presentation at a listed business office of two major credit cards, or other credit references, which may be quickly and easily checked by the utility.

(b) A deposit may be required where the applicant has failed to establish a satisfactory credit history as outlined in (a) of this subsection.

(c) In instances where a deposit may be required by the utility, the deposit shall not exceed two-twelfths of estimated annual billings for utilities billing monthly or bimonthly.

(d) When a customer of whom a deposit is required transfers his service to a new location within the same utility's service area, the deposit, less any outstanding balance, shall be transferrable and applicable to the new service location.

(e) Interest on deposits held shall accrue at the rate established according to law as interest upon judgments in superior courts of the state of Washington as of January 1 of each year. Interest shall be computed from the time of deposit to the time of termination of service and shall be compounded annually.

(f) When a customer or applicant for service of whom a deposit is required is unable to pay the entire amount of the deposit in advance of connection or continuation of service, the customer or applicant shall be allowed to pay fifty percent of the deposit amount prior to service, with the remaining amount payable in equal amounts on the utility's ordinary billing cycle during the first two months of service. A customer or applicant who is unable to meet this deposit requirement shall have the opportunity to receive service under (g) of this subsection.

(g) A customer or applicant for service of whom a deposit is required, but who is unable to make a deposit, shall be allowed, as an alternative to the making of a deposit, to prepay any installation charges and reasonably estimated regular service charges or budget billings at periods corresponding to the utility's regular billing period for the length of time during which a deposit would ordinarily have been required. The customer shall then be billed in a normal fashion.

(h) Deposits plus accrued interest shall be refunded where the customer has for twelve consecutive months paid for service when due in a prompt and satisfactory manner. Upon termination of service, the utility shall return to the customer the amount then on deposit plus accrued interest, less any amounts due the utility by the customer for service rendered.

NEW SECTION. Sec. 3. A new section is added to chapter 35.21 RCW to read as follows:

(1) "Utility," as used in this section, means any municipal electric utility that provides electric service to residential customers.

(2) Service may be discontinued by a utility for any of the following reasons:

(a) For the nonpayment of bills;

(b) When customer's wiring or equipment does not meet the utility's standards, or fails to comply with other applicable codes and regulations;

(d) If the premises are vacated by a customer;

(e) For nonpayment of any proper charges;

(f) For refusal to grant reasonable access to premises;

(g) For fraudulently obtaining or using service; or

(h) For failure to keep any agreed upon payment plan.

(3) Except in case of danger to life or property, fraudulent use, impairment of service, or violation of law, no utility shall discontinue service unless the following conditions are met:

(a) Each utility shall provide written notice of disconnection served on the customer either by mail or, at its option, by personal delivery of the notice to the customer's address. If such written notice of disconnection is for nonpayment during the winter period, the utility shall advise the customer of the payment plan which is available under RCW 35.21.300, payment arrangements, and responsibilities. If a mailed notice is elected, service shall not be disconnected prior to the eighth business day following mailing of the notice. If personal delivery is elected, disconnection shall not be permitted prior to 5 p.m. of the first business day following delivery. Delivered notice is effective if handed to a person of apparent competence in the residence or, if a business account, a person employed at the place of business of the service customer. If no person is available to receive notice, notice is served if attached to the primary door of the residence unit or business office at which service is provided. If service is not discontinued within ten working days of the first day on which disconnection may be effected, a new notice shall be required before the service can be discontinued.