An Act to regulate the disconnection and reconnection of utility services by the Commonwealth Utilities Corporation; and for other purposes (P.L. 15-122)

2 I j Utilities Corporation's ("CUC") present schedule of electric charges and rates has resulted in 3 the disconnection of power of many residential consumers. The Legislature finds that many 4 , of CUC7s disconnection, reconnection, and security deposit practices has created M e r 5 hardships and undue burdens on residential consumers. For example, CUC has disconnected 6 consumers: (1) without the benefit of offsetting their security deposits, (2) before the I 7 disconnection date, (3) who are disputing their billing statement, and (4) who are recipients I 8 , : of utility assistance from the Department of Community and Cultural Affairs. Even more 9 , egregious is that CUC has disconnected all utility services (water, power, and sewer) of some 10 delinquent consumers even though a consumer is only delinquent in the payment of one 11 . i particular utility.

12 The Legislature further finds that the present reconnection fees charged by CUC to 13 their delinquent residential consumers may be unreasonable. The present reconnection fee of 14 $75.00 for power has been in place since 1996. There have been numerous technological 15 advances that should make reconnecting power to consumers very cost effective and ' 16 economical. The reconnection fees charged by CUC should not be greater than the actual 17 cost of reconnecting customers. PUBLIC LAW NO. 15-122

1 During these difficult times, the Legislature finds that CUC must be more flexible in 2 its business practices to the extent necessary to remove additional and unnecessary burdens 3 on residential consumers. Therefore, the purpose of this legislation is to regulate the I 4 , disconnection and reconnection of utility services by CUC.

5 Section 2. Amendment. Article 4, Chapter 1, Division 8 of Title 4 of the

6 Commonwealth Code, as amended by Executive Order 2006-04, is amended by adding new 7 , sections 8 144 and 8 145 to read as follows: 8 , "5 8144. Disconnection of Utility Services. 9 '! (a) Offset Security Deposit.

10 " (1) Prior to the disconnection of utility services, the security deposit of 11 , a residential consumer shall be used to offset a consumer's past due amount I 12 for utility services.

13 I (2) The corporation shall establish procedures by regulation for the 14 ', restoring, within a reasonable time period, of security deposits should such 15 , i security deposits be used to offset a consumer's past due amount. I ! 16 ' (b) The corporation shall not disconnect the utility services of a residential 17 consumer before the disconnection date. (c) The corporation shall not disconnect the utility services of a residential consumer if the consumer is actively disputing a billing statement. (d) The corporation shall not disconnect all utility services (power, water, and sewer) of a residential consumer if the consumer is only delinquent in the payment of one utility service. (e) The corporation shall not disconnect a residential consumer who is receiving utility service assistance fkom the Department of Community and Cultural Affairs due to the failure of the said Department's failure to remit the utility service 26 payment to the corporation in a timely manner. Page 2 PUBLIC LAW NO. 15-122 HOUSEBILLNO. 15-39, HSl, SSI I (0 The corporation shall be liable for all reconnection fees and costs if the ! corporation disconnects a residential consumer in violation of any provision of this section. 5 8145. Reconnection of Utility Selirices. (a) Fees. The corporation shall not charge a reconnection fee for utility I ! /i ! services that is greater than the actual average cost incurred by the corporation to i I ,, , ' I reconnect a residential consumer; provided that the reconnection fee does not exceed ;! 1 s ] j :! $60.00. Actual cost includes the average total labor hours, administrative cost, parts, i , , 7 . transportation and other costs necessary to reconnect a residential consumer. ! !I : j ,; . , (b) Reconnection Security Deposit. The corporation shall not require an i / :i : additional security deposit to reconnect a residential consumer's utility service that is ! : . . ;/ ., greater than the security deposit required for new residential utility service . /. ., /.. I,. applicants." .: :, Section 3. Enforcement. The Consumer Counsel designated within the Office of !. ' ! i: A the Attorney General, as mandated by Public Law 6-46, shall be responsible for the I ; enforcement of this Act. I I Section 4. Severabiliw. If any provision of this Act or the application of any such ji ;I provision to any person or circumstance should be held invalid by a court of competent ! i/ I ! ' jurisdiction, the remainder of this Act or the application of its provisions to persons or ' I ., i1 i! circumstances other than those to which it is held invalid shall not be affected thereby. ; ! , : . 1 Section 5. Savings Clause. This Act and any repealer contained herein shall not be ' i construed as affecting any existing right acquired under contract or acquired under statutes repealed or under any rule, regulation or order adopted under the statutes. Repealers : contained in this Act shall not affect any proceeding instituted under or pursuant to prior law. i , i, The enactment of the Act shall not have the effect of terminating, or in any way modifying, i any liability, civil or criminal, which shall already be in existence on the date this Act ! ,i. ;, becomes effective. , . ij i! I : Page 3 PUBLIC LBW NO. 15-122

1 Section 6. Effective Date. This Act shall take effect upon its approval by the

2 Governor, or becoming law without such approval. CERTIFIED BY: ATTESTED TO BY: OF THE HOUSE SPEAKER (/ BE$IGNO R. FITIAL GOVERNOR MARTANA OF THE NORTHERN COMMONWEALTH ISLANDS Page 4 PUBLIC LAW NO. 15-122 HOUSEBILLNO. 15-39, HS1, SS1 CERTIFICATION: Overridden by the House of Representatives on December 3,2007, and by the Senate on December 5,2007, by the affirmative vote of two-thirds of the members in each house. SPEAKER OF THE HOUSE Page 5