Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 14 - Responsible Utility Customer Protection
Section 1404 - Cash deposits and household information requirements

(a) General rule.--In addition to the right to collect a deposit under any commission regulation or order, the commission shall not prohibit a public utility from requiring a cash deposit, payable during a 90-day period in accordance with commission regulations, in an amount that is equal to one-sixth of the applicant's estimated annual bill, at the time the public utility determines a deposit is required, from the following:
(1) An applicant who previously received utility distribution services and was a customer of the public utility and whose service was terminated for any of the following reasons:
(i) Nonpayment of an undisputed delinquent account.
(ii) Failure to complete payment of a deposit, provide a guarantee or establish credit.
(iii) Failure to permit access to meters, service connections or other property of the public utility for the purpose of replacement, maintenance, repair or meter reading.
(iv) Unauthorized use of the utility service delivered on or about the affected dwelling.
(v) Failure to comply with the material terms of a settlement or payment arrangement.
(vi) Fraud or material misrepresentation of identity for the purpose of obtaining utility service.
(vii) Tampering with meters, including, but not limited to, bypassing a meter or removal of an automatic meter reading device or other public utility equipment.
(viii) Violating tariff provisions on file with the commission so as to endanger the safety of a person or the integrity of the delivery system of the public utility.
(2) Any applicant or customer who is unable to establish creditworthiness to the satisfaction of the public utility through the use of a generally accepted credit scoring methodology, as provided in a commission-approved tariff, and which employs standards for using the methodology that fall within the range of general industry practice.
(3) A customer who fails to comply with a material term or condition of a settlement or payment arrangement.
(a.1) Cash deposit prohibition.--Notwithstanding subsection (a), no public utility may require a customer or applicant that is confirmed to be eligible for a customer assistance program to provide a cash deposit.
(b) Third-party guarantor.--Nothing in this section shall be construed to preclude an applicant from furnishing a third-party guarantor in lieu of a cash deposit. The guaranty shall be in writing and shall state the terms of the guaranty. The guarantor shall be responsible for all missed payments owed to the public utility.
(c) Deposit hold period.--
(1) A public utility may hold a deposit until a timely payment history is established.
(2) A timely payment history is established when a customer has paid in full and on time for twelve consecutive months.
(3) At the end of the deposit holding period as established in paragraph (1), the public utility shall deduct the outstanding balance from the deposit and return or credit any positive difference to the customer.
(4) If service is terminated before the end of the deposit holding period as established in paragraph (1), the public utility shall deduct the outstanding balance from the deposit and return any positive difference to the customer within 60 days of the termination.
(5) If a customer becomes delinquent before the end of the deposit holding period as established in paragraph (1), the public utility may deduct the outstanding balance from the deposit.
(6) The public utility shall accrue interest on the deposit until it is returned or credited.
(i) Interest shall be computed at the simple annual interest rate determined by the Secretary of Revenue for interest on the underpayment of tax under section 806 of the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code.
(ii) The interest rate in effect when deposit is required to be paid shall remain in effect until the later of:
(A) the date the deposit is refunded or credited; or
(B) December 31.
(iii) On January 1 of each year, the new interest rate for that year will apply to the deposit.
(d) Adult occupants.--Prior to providing utility service, a public utility may require the applicant to provide the names of each adult occupant residing at the location and proof of their identity.
(e) Failure to pay full amount of cash deposit.--A public utility shall not be required to provide service if the applicant or customer fails to pay the full amount of the cash deposit within the time period under subsection (a).
(f) City natural gas distribution operation; additional deposit rules for city natural gas distribution operations.--Except for applicants who are subject to a deposit under subsection (a), a city natural gas distribution operation may require a deposit from the applicant as follows:
(1) If an applicant has household income above 300% of the Federal poverty level, one-sixth of the applicant's estimated annual bill paid in full at the time the city natural gas distribution operation determines a deposit is required; or
(2) If an applicant has household income no greater than 300% of the Federal poverty level, one-twelfth of the applicant's estimated annual bill paid in full at the time the city natural gas distribution operation determines a deposit is required. Applicants who enroll into the Customer Assistance Program made available by the city natural gas distribution operation are not subject to this paragraph.
(g) Estimated annual bill.--When used in this section, an estimated annual bill shall be calculated on the basis of the annual bill to the dwelling at which service is being requested for the prior 12 months or, if unavailable, a similar dwelling in close proximity.
(h) Time for paying deposits upon reconnection.--Applicants and customers required to pay a deposit upon reconnection under subsection (a)(1) shall have up to 90 days to pay the deposit in accordance with commission regulations.
(Oct. 22, 2014, P.L.2545, No.155, eff. 60 days)

2014 Amendment. Act 155 amended subsecs. (a) intro. par., (1)(v), (2) and (3), (c)(1) and (6), (e) and (f) and added subsec. (a.1).