1. (a)

   1. (1) This section applies to:

      1. (A) Any residential customer; and
      2. (B) Small commercial customers whose average bill for the most recent twelve (12) months is two hundred dollars ($200) or less.
   2. (2) As used in this section, the term “customer” shall mean only such customers as so defined in this paragraph.

2. (b) Customer information.

   1. (1) When a customer informs the utility that he or she is having difficulty paying a bill, the utility shall explain that delayed payment agreements are available both by telephone and in person through the utility’s business offices.
   2. (2) The utility shall then inform the customer of his or her rights and obligations under this section.

3. (c) Extension agreement.

   1. (1) If a utility has met all of the requirements of subsection (b) of this section and a customer requests a payment extension of less than thirty (30) calendar days from the payment due date, the utility may offer to enter an extension agreement instead of a delayed payment agreement.
   2. (2) All extensions shall be documented.
   3. (3) The utility shall inform the customer of the utility’s right under 23 CAR § 455-604(b) to suspend service without advance written notice if the customer fails to keep the terms of the extension agreement.

4. (d) Availability of delayed payment agreement.

   1. (1) A utility shall offer and enter into a delayed payment agreement with a qualifying customer if the customer agrees to pay:

      1. (A) The down payment and all installments by the due dates; and
      2. (B) All bills from that utility coming due during the period of the agreement in full by each bill’s respective due date.
   2. (2) A utility may not limit the number of delayed payment agreements a customer may enter into if the customer qualifies under all other conditions of this section.

5. (e) Qualifying.

   1. (1)

      1. (A)

6. (i) A utility does not have to enter into a delayed payment agreement if the customer has failed to keep the terms of a delayed payment agreement in the last twelve (12) months.

   1. (ii) This includes failure to pay the agreed-upon down payment within three (3) business days.

      1. (B) Exception. This subdivision (e)(1) does not apply when a utility corrects an underbilling (see 23 CAR § 455-519(d)).
   2. (2) A utility does not have to enter into a delayed payment agreement after the last day to pay, as printed on the most recent shut-off notice, has passed except when 23 CAR § 455-616 or 23 CAR § 455-617 apply.
   3. (3) A utility does not have to enter into a second delayed payment agreement if the customer currently is bound by a delayed payment agreement.
   4. (4) If a customer has engaged in unauthorized use of service or has tampered with utility equipment in the last twenty-four (24) months, the utility does not have to enter into a delayed payment agreement.
   5. (5) If a customer has misrepresented a fact relevant to the conditions under which he or she obtained or continued utility service in the last twenty-four (24) months, the utility does not have to enter into a delayed payment agreement.

   6. (6)

      1. (A) The utility may require some form of identification of the customer or the person making the agreement.
      2. (B) If the information is not provided or is not acceptable evidence of identity, the utility may refuse to enter into a delayed payment agreement.

7. (f) Delayed payment agreements arranged by telephone.

   1. (1) Delayed payment agreements arranged by telephone shall meet all requirements of this section.

   2. (2)

      1. (A) The utility may require some form of identification that can be provided by telephone to verify the customer’s identity.
      2. (B) If the information is not provided or is incorrect, the utility may refuse to enter into a delayed payment agreement by telephone.
   3. (3) The utility must receive the down payment by the close of business on the third business day after the date the agreement was requested.
   4. (4) A utility shall document all delayed payment agreements arranged by telephone, including any failure to pay the down payment within three (3) business days.

8. (g) Delayed payment agreement procedure.

   1. (1) All delayed payment agreements shall be in writing and must include relevant portions of this section, specifically subdivisions (d)(1) and (e)(3) of this section and subsections (h) – (l) of this section.

   2. (2)

      1. (A) When a utility arranges a delayed payment agreement by telephone, the utility shall send or give the customer a copy of the delayed payment agreement within five (5) business days of receiving the customer’s down payment.
      2. (B) A utility may require the customer to sign the agreement and return it to the utility within ten (10) calendar days of the making of the agreement, but the customer’s signature is not necessary for validity and enforcement of the documented agreement under this section.

9. (h) Minimum standards for delayed payment agreements.

   1. (1)

      1. (A) The utility must receive a reasonable portion of the overdue bill as a down payment by the close of business on the third business day after arranging an agreement.
      2. (B) The utility may not require more than one-quarter (1/4) of the overdue bill as the down payment in order to enter into a delayed payment agreement.

   2. (2)

      1. (A) A utility shall allow the customer to make equal installment payments for at least three (3) months from the date of the down payment.
      2. (B) The down payment shall not be considered an installment payment.
   3. (3) Exceptions. Subdivisions (h)(1) and (2) of this section do not apply when a utility corrects an underbilling (see 23 CAR § 455-519(d)).

   4. (4) In offering terms for an agreement, a utility may take into account the:

      1. (A) Customer’s ability to pay;
      2. (B) Size of the unpaid account;
      3. (C) Customer’s payment history with the utility; and

      4. (D) Reason payment is late.

         1. (i) Renegotiating the delayed payment agreement.
   5. (1) If a customer can substantiate a change in ability to pay resulting from a serious medical condition or the loss of a major source of income, the utility must document its good faith effort to renegotiate a delayed payment agreement one (1) time during the period of the agreement.
   6. (2) The customer loses this right if any term of the delayed payment agreement is not kept.
   7. (3) A renegotiated agreement is not a new delayed payment agreement.
10. (j) Finance charge on delayed payment agreements. A utility may charge interest on delayed payment agreement installments.

11. (k) Suspension of service. A utility may suspend service without prior written notice, subject to the conditions of 23 CAR § 455-604(b), if a customer does not keep the terms of a delayed payment agreement or extension agreement.

    1. (l) Right to complain. A customer does not give up any right to complain to the Arkansas Public Service Commission by:
    2. (1) Signing a delayed payment agreement; or
    3. (2) Entering an extension agreement.

Codification Notes: This section was promulgated as Rule 6.13 of the General Service Rules prior to codification in the Code of Arkansas Rules.