1. (a) For a residential customer who demonstrates that economic hardship prevents payment in full of a delinquent bill, a utility may not refuse to restore or continue service unless the customer refuses to agree to or comply with a deferred payment plan meeting the requirements of this section.

2. (b) A deferred payment agreement between a utility and a residential customer must provide that service will continue if the customer meets all of the following conditions:

   1. (1) the customer agrees to pay one-third, or less at the option of the utility, of the outstanding bill at the time the parties enter into the deferred payment agreement;
   2. (2) the customer agrees to pay all future bills for utility service in accordance with the effective billing and collection tariffs of the utility; and
   3. (3) the customer agrees to pay the remaining outstanding balance in installments over a period not to exceed 12 months.
3. (c) The duration of a deferred payment agreement must be at least three months unless the customer agrees to a shorter period.
4. (d) A utility may include provisions for deferred payment agreements with non-residential customers in its tariff, or may negotiate them by special contract.

5. (e) In determining a reasonable deferred payment schedule, a utility and customer shall consider the following conditions, a list of which must be presented to the customer:

   1. (1) size of the delinquent account;
   2. (2) customer's ability to pay;
   3. (3) customer's payment history;
   4. (4) length of time the debt has been outstanding;
   5. (5) circumstances that resulted in the outstanding debt; and
   6. (6) any other relevant factors related to the circumstances of the customer.
6. (f) A deferred payment agreement must be in writing and must be signed by the customer and an authorized utility representative. A deferred payment agreement may include a finance charge as specified in the utility's effective tariff, but the charge may not exceed that allowed by AS 45.45.010(a).
7. (g) A utility shall offer comparable terms and conditions to customers with similar payment problems.
8. (h) If a customer fails to fulfill the terms of a deferred payment agreement, the utility may disconnect service under 3 AAC 52.450(d). The utility may offer a subsequent deferred payment agreement before disconnecting the customer's service.

(Eff. 1/1/87, Register 100)

Authority: AS 42.05.141, AS 42.05.151, AS 42.05.291