1. (1) A distribution utility must make reasonable efforts to contact eligible customers or applicants by phone, mail or in person for the purpose of offering a deferred payment agreement and negotiating terms tailored to the customer's financial circumstances, prior to making the written offer of a deferred payment agreement required under paragraph (4) of this subdivision. Consistent with provisions of its agreement to supply commodity, if applicable, and provided such provisions are consistent with other requirements of the Public Service Law, a utility must make reasonable efforts to contact eligible customers or applicants for the purpose of offering a deferred payment agreement and negotiating terms tailored to the customer's financial circumstances, prior to making the written offer of a deferred payment agreement required under paragraph (4) of this subdivision. A deferred payment agreement or payment agreement (also referred to as the agreement in this section) is a written agreement for the payment of outstanding charges over a specific period of time, signed by both the utility and the customer or applicant.

   1. (i) A utility must negotiate in good faith with any customer or applicant with whom it has contact so as to achieve an agreement that is fair and equitable considering the customer's financial circumstances.
   2. (ii) A utility may require that a customer or applicant complete a form showing assets, income and expenses, and provide reasonable substantiation of the information on that form, provided that all such information shall be treated as confidential.
   3. (iii) A payment agreement must provide for installments as low as $10 per month and no down payment, when the customer or applicant demonstrates financial need for such terms, but need not provide for monthly installments of less than $10.
   4. (iv) A payment agreement may provide for any size or no down payment, and installments on any schedule over any period of time if mutually agreed to by the parties.
2. (2) At the time a utility notifies a customer of his or her right to an installment payment plan under section 11.13(f) or 11.14(a) or (c) of this Part, the utility must also make reasonable efforts to negotiate terms tailored to the customer's financial circumstances, in accordance with paragraph (1) of this subdivision.
3. (3) A utility may postpone a scheduled termination, disconnection or suspension of service up to 10 calendar days after the date stated in the final notice of termination, disconnection or suspension for the purpose of negotiating payment agreement terms, provided that the customer is clearly advised of such postponement.

4. (4) A utility must make a written offer of a payment agreement by providing two copies of the payment agreement form setting forth the specific terms for payment and signed by the utility to an eligible customer or applicant at the following times:

   1. (i) not less than seven calendar days (10 days, if mailed) before the earliest date on which termination, disconnection or suspension may occur, which is either the date stated in a final notice of termination, disconnection or suspension or a date, up to 10 days thereafter, to which the utility has postponed the termination, disconnection or suspension of service while negotiating a payment agreement pursuant to paragraph (3) of this subdivision;
   2. (ii) when payment of outstanding charges is a requirement for acceptance of an application for service, in accordance with section 11.3 of this Part;
   3. (iii) when payment of outstanding charges is required in accordance with section 11.9(a) and/or (b) of this Part; and
   4. (iv) as required after a broken payment agreement in accordance with paragraph (e)(3) of this section.
5. (5) A utility must renegotiate and amend a payment agreement if the customer or applicant demonstrates that his or her financial circumstances have changed significantly because of conditions beyond his or her control.
6. (6) A utility must develop written payment agreement procedures and forms for evaluating the financial need of a customer or applicant, for assuring the confidential handling of such information, for arriving at fair and equitable payment terms and for training its personnel, which procedures shall be filed with the Office of Consumer Services.

7. (7) The commission or its authorized designee may order a utility to offer a payment agreement in accordance with this section where the parties have been unable to reach agreement or where an agreement is necessary for the fair and equitable resolution of a complaint.

   (b) Eligibility.

8. (1) A customer or applicant is eligible for a payment agreement and must be offered one in accordance with subdivision (a) of this section, unless:

   1. (i) the customer has broken an existing payment agreement, except as provided in paragraph (e)(3) of this section; or
   2. (ii) the commission or its designee determines that the customer or applicant has the resources available to pay the bill.

9. (2) If the utility believes that a customer or applicant is not eligible for a payment agreement because he or she has the resources to pay the bill, it may seek a determination from the commission or its designee, in accordance with the following procedures:

   1. (i) the utility must notify the customer or applicant and the commission or its designee in writing of the reason for its belief;
   2. (ii) the utility must give the customer or applicant written notice summarizing the procedures under this paragraph in clear and understandable language;
   3. (iii) the commission or its designee will forthwith make a determination as to whether the customer or applicant has the resources available to pay the bill;

   4. (iv) until such a determination is made by the commission or its designee, the utility must postpone any termination, disconnection or suspension activity, restore service or provide service, as applicable, as long as the customer or applicant pays current bills, and a down payment and monthly installments consistent with subparagraph (c)(2)(ii) of this section, or such other amounts established by the commission or its designee.

      (c) Terms of agreement.

10. (1) A payment agreement shall obligate the customer to make timely payments of all current charges.

11. (2) A payment agreement shall either contain:

    1. (i) the specific terms for payment of the amount covered by the agreement mutually agreed upon by the utility and the customer or applicant after negotiation pursuant to paragraph (a)(1) of this section; or
    2. (ii) a down payment up to 15 percent of the amount covered by the payment agreement or the cost of one half of one month's average usage, whichever is greater; unless such amount is less than the cost of one half of one month's average usage, in which case the down payment may be up to 50 percent of such amount; and monthly installments up to the cost of one half of one month's average usage or one tenth of the balance, whichever is greater.

12. (3) The cost of one month's average usage shall be calculated by averaging the cost of service over the prior 12 months.

    (d) Form of agreement.

    A payment agreement form shall in clear and understandable language and format contain the following information:

13. (1) that the utility is required to offer a payment agreement that the customer or applicant is able to pay, considering his or her financial circumstances, and that the agreement should not be signed if the customer or applicant is unable to pay its terms;
14. (2) that if the customer or applicant demonstrates financial need, alternate terms will be available, a down payment may not be required and installments may be as low as $10 per month above current bills;
15. (3) that assistance to pay utility bills may be available to recipients of public assistance or supplemental security income from a local social services office;
16. (4) that if the customer or applicant is unable to pay the terms of the agreement, or if for any other reason the customer or applicant wishes to discuss the agreement, the customer or applicant should call the utility at a specified telephone number and that if any further assistance is needed, the customer or applicant should call the commission at a specified telephone number;
17. (5) that by signing and returning the form together with any required down payment to the utility within the required time period, the customer or applicant will be entering into a payment agreement, and by doing so, will avoid termination, disconnection or suspension of service;
18. (6) the date by which the copy signed by the customer, and any applicable down payment, must be received by the utility in order to avoid termination, disconnection or suspension of service, if applicable; provided, however, that such date may not be less than six business days after the agreement is sent by the utility;
19. (7) the utility's policy if the agreement is not signed and returned as required;
20. (8) the total amount due, the required down payment, if any, and the exact dollar amount and due date of each installment;
21. (9) that if the customer or applicant fails to comply with the terms of the payment agreement, the utility will take steps to terminate, disconnect or suspend service;
22. (10) that the customer or applicant has a right to immediate enrollment on a levelized payment plan. This notice must be placed close to the signature line, include a conspicuous check-box option, and give a specified telephone number to call the utility for more information. A brief explanation of the levelized payment plan, consistent with section 11.11 of this Part, must accompany the agreement; and

23. (11) that if the customer or applicant later can demonstrate that his or her financial circumstances have changed significantly because of conditions beyond his or her control, the utility must amend the terms of the agreement to reflect such changes.

    (e) Broken agreements.

24. (1) If a customer fails to make timely payment in accordance with a payment agreement, the utility must send a reminder notice at least eight calendar days prior to the day when a final notice of termination, disconnection or suspension will be sent, stating in conspicuous bold type that:

    1. (i) the customer must meet the terms of the existing payment agreement by making the necessary payment within 20 calendar days of the date payment was due or a final termination, disconnection or suspension notice may be issued;
    2. (ii) if the customer can demonstrate that he or she is unable to make payment under the terms of the payment agreement because his or her financial circumstances have changed significantly because of conditions beyond his or her control, the customer should immediately contact the utility at a specified telephone number because a new payment agreement may be available.

25. (2) If by the 20th calendar day after payment was due, the utility has neither received payment nor negotiated a new payment agreement, the utility may demand full payment of the total outstanding charges and send a final termination, disconnection or suspension notice in accordance with section 11.4(a) and/or (b) of this Part stating in conspicuous bold type:

    1. (i) if the customer can demonstrate that he or she is unable to make payment under the terms of the payment agreement because his or her financial circumstances have changed significantly because of conditions beyond his or her control, the customer should immediately contact the utility at a specified telephone number because a new payment agreement may be available;
    2. (ii) that assistance to maintain utility service may be available from a local social services office;
    3. (iii) that before the social services office will provide assistance, the customer generally must provide the utility with information showing assets, income and expenses to evaluate whether the customer is entitled to a new payment agreement; and
    4. (iv) either the address and telephone number of the appropriate social services office, or the local social services information number.
26. (3) Any final termination, disconnection or suspension notice sent because the customer has broken an agreement negotiated pursuant to paragraph (a)(1) of this section and which required payment over a shorter period than the subparagraph (c)(2)(ii) of this section standard agreement for that customer would allow, must also be accompanied by a written offer of a new agreement to pay the outstanding balance in monthly installments calculated in accordance with subparagraph (c)(2)(ii) of this section.

(a) Utility obligations.