(a) Any failure to submeter in compliance with this Part or Part 92 or 93 of this Title, as referenced herein, may result in commission action that:

1. (1) rescinds, suspends, limits or stays the submeterer’s authorization to submeter electricity, or its authority to render bills to and collect payments from submetered residents;
2. (2) terminates electric service to the submetered premises or orders rebilling, or billing refunds; or

3. (3) results in a penalty action under the Public Service Law or in other commission enforcement proceedings.

   Any such actions shall be taken in accordance with the Public Service Law and commission procedures.

(b) In addition, or in the alternative, a failure to submeter in compliance with this Part or Part 92 or 93 of this Title as referenced herein, may result in up to a 40 percent reduction of the rate cap. Prior to establishing a reduced rate cap, the Department of Public Service shall:

1. (1) provide to the submeterer a notice of alleged violation stating with specificity the violations(s) of regulations, commission orders, statute(s) or tariff(s) found after department investigation as well as the department’s proposed rate cap;
2. (2) require that the submeterer provide a copy of the notice of alleged violation to residents along with information on how residents may provide comments within 10 days to the Department of Public Service regarding such notice;
3. (3) allow the submeterer 15 days from the date of the notice of alleged violation to respond to such notice;
4. (4) allow the submeterer 20 days from the date of such response or 30 days from the notice of alleged violation to cure the failures identified therein; and
5. (5) send to the submeterer a notice of rate cap reduction stating the basis for the rate cap reduction, the level of rate cap reduction and, the date(s) upon which the rate cap reduction shall be in effect. The rate cap reduction shall be in effect no less than 20 days after the notice of rate cap reduction.