N.Y. Comp. Codes R. & Regs. tit. 16, § 13.5 – Deferred payment agreements.

(1) A utility shall provide a written notice offering a deferred payment agreement in accordance with this section to an eligible customer at the following times:
1. (i) not less than five calendar days before the date of a scheduled termination of service for nonpayment of arrears, as indicated on a final termination notice, or eight calendar days if mailed, provided the customer has been a customer for at least six months and the arrears on which the outstanding termination notice is based exceed two months' average billing; and
2. (ii) when it renders a backbill, which exceeds the cost of twice the customer's average monthly usage or $100, whichever is greater; provided, however, that a utility shall not be required to offer an agreement when the customer knew, or reasonably should have known, that the original billing was incorrect.
(2) If a utility and a customer agree to terms of a deferred payment agreement in a telephone conversation, the utility shall send the customer two fully completed copies of the agreement, signed by the utility, for the customer to sign and return.
(b) Eligibility.
(1) Any customer is eligible for a deferred payment agreement except the following:
1. (i) a customer who owes any amounts under a prior deferred payment agreement;
2. (ii) a customer who failed to make timely payments under a prior deferred payment agreement in effect during the previous 12 months;
3. (iii) a customer that is a publicly held company, or a subsidiary thereof;
4. (iv) a seasonal, short-term or temporary customer;
5. (v) an electric customer who, during the previous 12 months, had a combined average monthly billed demand for all its accounts with the utility in excess of 20 kw, or who registered any single demand on any account in excess of 40 kw;
6. (vi) a gas customer who during the previous 12 months had a combined total consumption for all its accounts with the utility in excess of 4,000 therms;
7. (vii) a steam customer who during the previous 12 months had a combined total consumption for all its accounts with the utility in excess of 1,000 Mlbs;
8. (viii) a customer of any two or more services (gas, electric and steam) who is ineligible under subparagraph (v), (vi) or (vii) of this paragraph; or
9. (ix) a customer who the utility can demonstrate has the resources to pay the bill, provided that the utility notifies the customer of its reasons and of the customer's right to contest this determination through the commission's complaint procedures.
(2) The commission or its authorized designee may order a utility to offer a deferred payment agreement in accordance with this section to a customer whom it finds this section intended to protect, when an agreement is necessary for a fair and equitable resolution of an individual complaint.
(c) Contents of offer.
(1) Every offer of a deferred payment agreement shall inform the customer of the availability of a deferred payment agreement for eligible customers, set forth generally the minimum terms to which such customer is entitled, explain that more generous terms may be possible, and specify the telephone number and the times to call in order to discuss agreement.
(2) An offer pursuant to subparagraph (a)(1)(i) of this section shall also state the date by which the customer must contact the utility in order to avoid termination, and explain that the utility has the right to a larger down payment if the deferred payment agreement is not entered into until after a field visit to physically terminate service has been made.
(d) Terms of agreement.
(1) A deferred payment agreement shall obligate the customer to make timely payments of all current charges.
(2) A deferred payment agreement offered pursuant to subparagraph (a)(1)(i) of this section may require the customer:
1. (i) to make a down payment of up to 30 percent of the arrears on which an outstanding termination notice is based, or the cost of twice the customer's average monthly usage, whichever is greater, plus the full amount of any charges billed after the issuance of the termination notice which are in arrears at the time the agreement is entered into; or
2. (ii) in the event a field visit to physically terminate service has been made, to make a down payment of up to 50 percent of the arrears on which an outstanding termination notice is based, or the cost of four times the customer's average monthly usage, whichever is greater, plus the full amount of any charges billed after the issuance of the termination notice which are in arrears at the time the agreement is entered into; and
3. (iii) to pay the balance in monthly installments of up to the cost of the customer's average monthly usage or one sixth of the balance, whichever is greater; and
4. (iv) to pay late payment charges during the period of the agreement; and
5. (v) to pay a security deposit in three installments, 50 percent down and two monthly payments of the balance, if previously requested in accordance with section 13.7 of this Part.
(3) A deferred payment agreement offered pursuant to subparagraph (a)(1)(ii) of this section, may require the customer to pay the outstanding charges in monthly installments of up to the cost of one half of the customer's average monthly usage, or one twenty-fourth of such charges, whichever is greater.
(4) A deferred payment agreement may provide for a greater or lesser down payment, a longer or shorter period of time, and payment on any schedule, if mutually agreed upon by the parties.
(e) Form of agreement.
A deferred payment agreement form shall:
(1) set forth in general the terms of the agreement;
(2) indicate the due date for each installment, and the exact dollar amount of each installment, separately itemized to show the arrears payment and the security deposit payment, as applicable;
(3) indicate whether the agreement is subject to late payment charges, and if so, either set forth the exact dollar amount of the late payment charge to be paid with each installment or, if late payment charges are to be billed on the customer's regular cycle bill, a late payment charge disclosure statement. The disclosure statement shall include the late payment charge rate, on both a monthly and an annualized basis, how it is calculated, how and when the late payment charge will be billed, what the total cost of late payment charges on the agreement will be if the agreement if fully complied with, and a notice that the total late payment charges may be greater or less than the disclosed cost if the customer makes payments either early or late;
(4) state the date by which the copy signed by the customer, and any applicable down payment, must be received by the utility in order to become enforceable; provided, however, that such date may not be less than six business days after it is sent;
(5) inform the customer of the utility's policy if the agreement is not signed and returned as required;
(6) state that if the customer fails to comply with an agreement, the utility may send an immediate termination notice; and
(7) state that the customer may obtain the assistance of the commission to assure that the agreement is in conformance with this section.
(f) Broken agreements.
(1) The first time a customer fails to make timely payment in accordance with a deferred payment agreement, the utility shall give the customer a reasonable opportunity to keep the agreement in force by paying any amounts due under the agreement.
(2) Except as provided in paragraph (1) of this subdivision, if a customer fails to comply with the terms of a deferred payment agreement, the utility may demand full payment of the total outstanding charges and send a final termination notice in accordance with section 13.3(b)(3)(ii) of this Part.
(g) Utilities shall comply with this section no later than March 18, 1988.

(a) Utility's obligations.