N.Y. Comp. Codes R. & Regs. tit. 16, § 14.10 – Deferred payment agreements.

(1) A utility must provide a written offer of a payment agreement, in accordance with this section, to an eligible customer or applicant at the following times:
1. (i) not less than five calendar days before the date of the scheduled termination of service for nonpayment of arrears, as indicated on a final termination notice, or eight calendar days if mailed;
2. (ii) when payment of outstanding charges is a requirement for acceptance of an application for service, in accordance with section 14.3 of this Part; and
3. (iii) when it renders a backbill which is more than $100; provided, however, that a utility is not required to offer an agreement under this subparagraph where the customer's culpable conduct caused or contributed to the underbilling.
(2) If payment of outstanding charges is a requirement for reconnection, in accordance with section 14.9 of this Part, the utility must offer the customer a payment agreement in accordance with this section. The utility must also inform the customer that he or she may opt to have the agreement include any applicable reconnection charge and/or legal fee, specifying the amount of such charge.
(3) A utility must negotiate in good faith with a customer or applicant in order to arrange a payment agreement that the customer or applicant is able to pay, considering his or her financial circumstances.
1. (i) 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.
2. (ii) A payment agreement must provide for installments as low as $10 per month and no downpayment, when the customer or applicant demonstrates financial need for such terms, but need not provide for monthly installments of less than $10.
3. (iii) A payment agreement may provide for any size or no downpayment and installments on any schedule over any period of time, and cover any outstanding charges, if mutually agreed to by the parties.
(4) 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.
(5) A utility must develop written 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 utility personnel, which procedures must be filed with the Consumer Services Division.
(6) The commission or its 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.
(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 is a seasonal, short-term or temporary customer;
2. (ii) the customer has broken an existing payment agreement; or
3. (iii) the commission or its designee determines that the customer or applicant has the resources available to pay the bill.
(2) If the utility believes that a customer or applicant has the resources available to pay the bill in full or where the utility and customer are unable to agree on a payment agreement covering amounts that exceed the cost of twice the customer's average yearly usage, either party may seek a determination from the commission or its designee, in accordance with the following procedures:
1. (i) the utility must immediately notify the customer or applicant and the commission or its designee of its position;
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 make a determination without undue delay; and
4. (iv) until such a determination is made by the commission or its designee, the utility must postpone any termination activity, and restore service or provide service if so directed by the commission or its designee, as long as the customer or applicant pays current bills and terms of a payment agreement established by the commission or its designee.
  (c) Contents of offer.
  Every offer of a payment agreement must:
(1) inform the customer or applicant of the availability of a payment agreement for eligible customers;
(2) set forth generally the minimum terms to which such customer or applicant is entitled;
(3) explain that alternate terms may be possible;
(4) state the date by which the customer must contact the utility in order to avoid termination, if applicable;
(5) specify the utility's telephone number and the times to call in order to discuss an agreement; and
(6) state that if further assistance is needed, the customer or applicant should call the commission at a specified telephone number.
(d) Terms of agreement.
(1) A payment agreement must require the customer or applicant to pay all current bills on time.
(2) Unless otherwise agreed to by the utility and the customer, a utility is required to offer a payment agreement that covers amounts up to the cost of twice the customer's average annual usage. The downpayment may include any amount owed in excess of twice the customer's average annual usage. If the customer and utility are unable to agree upon a payment agreement under these circumstances, either party may seek a determination from the commission or its designee in accordance with paragraph (b)(2) of this section.
(3) A payment agreement offered for nonpayment of arrears, upon application for service, or upon request for reconnection, under subparagraph (a)(1)(i) or (ii) of this section, may require the customer or applicant:
1. (i) to make a downpayment of up to 20 percent of the amount covered by the agreement, or the cost of one month's average usage, whichever is greater; and
2. (ii) to pay the balance in monthly installments up to the cost of one month's average usage or one-tenth of the balance, whichever is greater.
(4) A payment agreement offered for backbilling, under subparagraph (a)(1)(iii) of this section, may require the customer to pay the outstanding charges in three or more monthly installments of up to the cost of one month's average usage or one twenty-fourth of such charges, whichever is greater.
(5) The cost of one month's average usage must be calculated by averaging the customer's cost of service over the prior year, if available.
(e) Form of agreement.
The payment agreement must, in clear and understandable language and format, contain the following information:
(1) the total amount due, the required downpayment, if any, and the exact dollar amount and due date of each installment;
(2) the date by which the copy signed by the customer, and any applicable downpayment, must be received by the utility in order to become enforceable; provided, however, that such date may not be less than eight calendar days after it is sent;
(3) the utility's policy if the agreement is not signed and returned as required;
(4) that if the customer or applicant fails to comply with the terms of the payment agreement, the utility will take steps to terminate service; and
(5) that if the customer or applicant later can demonstrate 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.
(f) Broken agreements.
(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 before the day when a final termination notice will be sent, stating 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 notice may be issued; and
2. (ii) if the customer can demonstrate that he or she is unable to pay the terms of the payment agreement due to a significant change in his or her financial circumstances, because of conditions beyond his or her control, the customer should immediately contact the utility at a specified telephone number to arrange a new payment agreement.
(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 notice in accordance with section 14.4 of this Part.

(a) Utility's obligations.