DEPARTMENT OF LABOR AND ECONOMIC GROWTH

                           PUBLIC SERVICE COMMISSION

  BILLING PRACTICES APPLICABLE TO NON-RESIDENTIAL ELECTRIC AND GAS CUSTOMERS

(By authority conferred on the public service commission by section 2 of 1909 
PA 300, section 5 of 1919 PA 419, and section 6 of 1939 PA 3, MCL 460.55, MCL 
460.6, and MCL 462.2(12).)

                             PART 1. GENERAL PROVISIONS

R 460.1601  Applicability; purpose.
   Rule 1. (1) These rules apply to non-residential retail  service  provided 
by electric and gas utilities subject to the jurisdiction of the commission.
   (2) These rules are intended to promote safe and adequate service  to  the 
public and to provide standards  for  uniform  and  reasonable  practices  by 
electric and gas utilities in dealing with non-residential customers.
   (3) These rules do not relieve a utility from any of its duties under  the 
laws of the state of Michigan.
  
  History: 2008 AACS.


R 460.1602  Definitions.
   Rule 2. As used in these rules:
   (a) "Actual meter reading" means a gas or electric meter reading  that  is 
based on the customer's actual energy use during the period reported and that 
was performed by a company representative, by the customer  and  communicated 
to the company by mail, telephone, fax, a secure company  website,  or  other 
reasonable means, or that was  transmitted  by  an  automated  meter  reading 
device. 
   (b) "Applicant" means a person over the age of 18  or  a  business  entity 
requesting non-residential retail utility gas or electric service in the name 
of that person or entity.
   (c) "Billing error" means an undercharge or overcharge caused  by  any  of 
the following:
   (i) An incorrect actual meter read by a company representative.
   (ii) An incorrect remote meter read.
   (iii) An incorrect meter constant or pressure factor.
   (iv) An incorrect calculation of the applicable rate.
   (v) A meter switched by a utility or utility representative.
   (vi) An incorrect application of the rate schedule.
   (vii) Other similar act or omission by  the  utility  in  determining  the 
amount of a customer's bill. An undercharge or overcharge that is caused by a 
non-registering meter, a metering inaccuracy, or  the  use  of  an  estimated 
meter read or a customer read is not a billing error.
   (d) "Commission" means the Michigan public service commission.
   (e) "Complaint determination" means the  written  decision  of  a  hearing 
officer after an informal hearing.
   (f) "Customer" means a purchaser of electricity or  natural  gas  that  is 
supplied or distributed by a utility for non-residential purposes,  including 
service to schools and centrally metered apartment buildings.
   (g) "Existing customer" means a customer who has  been  receiving  service 
continuously for at least the last 6 months.
   (h) "Hearing officer" means a notary public who is qualified to administer 
oaths to  conduct  informal  small  commercial  customer  complaint  hearings 
against the utility company and who is on a list on file with the commission.
   (i) "Informal appeal" means an appeal of a complaint  determination  of  a 
hearing officer made to the commission staff.
   (j) "Informal hearing"  means  a  dispute  resolution  process  for  small 
commercial customers that is administered by a hearing officer.
   (k) "Meter" means a device that measures the quantity of  gas  used  by  a 
customer, including a device that measures the  heat  content  of  gas  or  a 
device that measures and registers the amount of electrical power used.
   (l)  "Positive  identification  information"  means  a  consistently  used 
appropriate identification including, but not limited to:
   (i) A driver's license or ID card issued by a state, U.S.  military  card, 
military dependent's ID card, native American tribal document, or passport.
   (ii) Articles of incorporation,  tax  identification  documents,  business 
license, certificate of authority, or similar documents proving identity of a 
business.
   (m) "Regulation officer" means  a  member  of  the  commission  staff  who 
resolves complaints in accordance with these rules.
   (n) "Settlement agreement" means a documented agreement  that  is  entered 
into by a customer and a utility and that resolves any matter in  dispute  or 
provides for the payment of amounts not in dispute over a  reasonable  period 
of time.
   (o) "Small commercial customer"  means  a  non-residential  customer  with 
usage of 200 Mcf of gas or less per year or 15,000 kWh of electric  usage  or 
less per year.
   (p) "Space heating season" means the period from November 1 through  March 
31.
   (q)  "Unauthorized  use  of   utility   service"   means   theft,   fraud, 
interference, or diversion of service, including but not  limited  to,  meter 
tampering (for example, any act which  affects  the  proper  registration  of 
service through a meter), bypassing  (for  example,  unmetered  service  that 
flows through  a  device  connected  between  a  service  line  and  customer 
facilities), and service restoration by anyone other than the utility or  its 
representative.
   (r) "Utility" means a person, firm, corporation, cooperative, association, 
or other legal entity that is subject to the jurisdiction of  the  commission 
and that distributes or sells electricity or natural gas for  non-residential 
use.

  History: 2008 AACS.


R 460.1603  Discrimination prohibited.
   Rule 3. A utility shall not discriminate against or  penalize  a  customer 
for exercising any right granted by these rules.

  History: 2008 AACS.


R 460.1604  Form of proceedings.
   Rule 4.  The  informal  procedures  required  by  these  rules  shall  not 
constitute a contested case as defined by section  3  of  1969  PA  306,  MCL 
24.203. 

  History: 2008 AACS.


R 460.1605  Additional rules.
   Rule 5. A utility may adopt additional rules governing relations with  its 
customers that are reasonable and necessary  and  that  are  consistent  with 
these rules. The utility's rules shall be an integral part of its tariffs and 
shall be subject to approval by  the  commission.  If  there  is  a  conflict 
between these rules and a utility's rules or tariffs, these rules govern.

  History: 2008 AACS.


                           PART 2.  APPLICATION FOR SERVICE


R 460.1606  Application for new service.
   Rule 6. Applicants for service may  become  new  customers  by  requesting 
service in person at the utility company office, in writing,  via  telephone, 
fax, internet or other means of communication.  Using any of  these  methods, 
an applicant shall do all of the following:
   (a) Provide positive identification information.
   (b) Show ownership or a lease for  the  property  where  service  will  be 
rendered.
   (c) Pay a deposit as a new customer, if applicable. 

  History: 2008 AACS.


                   PART 3. GENERAL CUSTOMER DEPOSIT CONDITIONS


R 460.1607  Customer deposits.
    Rule 7.  (1) Except as provided in this  subrule,  a  utility  shall  not 
require a deposit from a new customer as a condition of receiving service.  A 
utility may require a deposit from a new customer  if  the  customer  has  an 
unfavorable  credit  rating  with  a  credit  reporting  agency,  an   unpaid 
delinquent bill for utility service, or has engaged in  unauthorized  use  of 
utility service within the last 6 years.
    (2) A utility may require a deposit from an existing  customer  if  2  or 
more final disconnect  notices  have  been  issued  within  the  most  recent 
12-month period, service has been discontinued for nonpayment,  the  customer 
has engaged in unauthorized use of utility electric or gas  service,  or  the 
customer exhibited an unsatisfactory record of bill payment within the  first 
6 months after service commenced.
    (3) A deposit for small commercial customers shall not be more  than  15% 
of the customer's annual electric or  gas  bill.  All  other  non-residential 
customers may be required to pay a deposit equal to  25%  of  the  customer's 
annual electric or  gas  bill.   The  deposit  required  as  a  condition  of 
providing, restoring, or  continuing  service  due  to  unauthorized  use  of 
utility service shall not be more  than  4  times  the  average  peak  season 
monthly bill, or 4 times the utility's system  average  peak  season  monthly 
bill for the same class of service if the customer's consumption history  for 
the service is unavailable. 
   (4) A deposit may be retained by the utility until the customer compiles a 
record of 12 continuous months of bill payment on or before the due date.
   (5) Interest shall be paid on deposits at a rate of 7% per annum. 
   (6) If service is terminated, the utility  may  apply  the  deposit,  plus 
accrued interest, to the customer's  unpaid  balance.  If  the  deposit  plus 
accrued interest is more than the unpaid  balance,  then  the  utility  shall 
return the excess to the customer.
   (7) Each utility shall  keep  records  that  show  all  of  the  following 
information:
   (a) The name and address of each depositor.
   (b) The amount and date of the deposit.
   (c) Each transaction concerning the deposit.
   (8) Each utility shall issue a receipt of deposit to  each  customer  from 
whom a deposit is received and shall provide means whereby  a  depositor  may 
establish a claim if the receipt is lost.
   (9) The utility shall make reasonable  efforts  to  locate  customers  due 
unclaimed deposits and credits.
   (10) Each utility shall, within 60 days of  the  effective  date  of  this 
rule, transmit a notice explaining the conditions under which a  deposit  may 
be required to all existing customers. This notice shall also be provided  to 
new customers within 30 days after service has commenced or, at the utility's 
option, with the first bill rendered.
   (11) During the space heating season a small commercial customer shall not 
pay a deposit unless that customer has been shut off  for  nonpayment  during 
the prior 12  months  or  where  unauthorized  use  of  utility  service  has 
occurred. A customer deposit under this subrule may not exceed the customer's 
average monthly bill.
   (12) The utility may, at  its  option,  accept  an  irrevocable  financial 
institution letter of credit, a surety bond,  or  other  corporate  guarantee 
instead of a deposit. 

  History: 2008 AACS.


PART 4.  METER  READING,  ESTIMATED  BILLS,  BILLING  ADJUSTMENTS,  VOLUNTARY 
TERMINATION, AND METER RELOCATION


R 460.1608  Meter reading interval and estimated bills.
   Rule 8.  (1) Except as specified in this rule, a utility shall provide all 
non-residential customers with an actual monthly meter read. The utility  may 
permit a customer to supply  meter  readings  on  a  form  furnished  by  the 
utility, on a secure company website, by telephone, or  by  other  reasonable 
means if an employee of the utility reads the meter at  least  once  each  12 
months. A bill that is rendered on an estimated basis shall  be  clearly  and 
conspicuously identified as such.  Estimated  bills  shall  not  be  rendered 
unless estimating procedures have been  approved  by  the  commission.  If  a 
utility cannot obtain  an  actual  meter  reading,  then  the  utility  shall 
maintain records of the efforts made to obtain an actual  meter  reading  and 
its reasons for failure to obtain an actual meter reading.
   (2) A utility may render estimated bills to seasonally billed customers in 
accordance with the tariffs approved by the commission.
   (3) Except for seasonally billed customers, bills may be estimated only if 
the utility representative is unable to gain access to  the  meter  or  meter 
reading equipment failure  occurs.  If  a  meter  reading  equipment  failure 
occurs, the equipment shall be promptly replaced or repaired so that not more 
than 2 estimated bills are necessary.
   (4) If the utility estimates a customer's bill for 2 or  more  consecutive 
months, notwithstanding the provisions of subrules (1) and (3) of this  rule, 
when an actual read is obtained the  utility  shall  offer  small  commercial 
customers the opportunity to pay the bill in equal monthly payments over  the 
same number of months as consecutively estimated bills. 
   (5) An estimated bill generated because the actual  read  is  outside  the 
range for the premise usage shall not be issued in consecutive months. If the 
utility is actively engaged in resolving the problem, then an  additional  30 
days is permitted to correct the problem and obtain an actual meter reading.

  History: 2008 AACS.


R 460.1609  Metering inaccuracies; billing adjustments.
   Rule 9. If any utility meters are determined to be inaccurate as described 
in the Technical Standards for  Gas  Service,  R  460.2301  to  460.2384,  or 
Technical Standards for Electric Service, R  460.3101  to  460.3804,  then  a 
utility shall make customer billing  adjustments  in  accordance  with  these 
rules. 

  History: 2008 AACS.


R 460.1610  Voluntary termination. 
   Rule 10.   (1) A utility customer or authorized  representative  shall  do 
all of the following:
   (a) Notify the utility in person, or by telephone, in writing, by  fax  or 
on the internet  at  least  10  business  days  prior  to  requested  service 
termination.
   (b) Allow access to the utility, if necessary, to perform  a  final  meter 
read.
   (c) Provide an address for final billing at the  time  of  request  for  a 
final read.
   (2) The utility shall do both of the following:
   (a) Provide a final actual meter reading within 10 business  days  of  the 
request for termination or estimate the final read and offer the customer the 
option to provide an actual read. If the meter is not read within the  10-day 
time frame, then the utility must document the reason for no actual  reading. 
A meter read shall be obtained by the next normal reading cycle.
   (b) Schedule the customer's final read within a 4-hour time frame  if  the 
utility cannot access the meter.

  History: 2008 AACS.


R 460.1611  Meter or facilities relocation charge.
   Rule 11.  (1) A utility may assess a  relocation  charge  in  any  of  the 
following situations:
   (a) The utility shut off service by disconnection at the  street  or  pole 
because the  utility  could  not  obtain  access  to  the  meter  or  utility 
facilities.
   (b) The customer or its agent refused to permit the utility access to  the 
meter or utility facilities on 2 separate occasions or on a  single  occasion 
if harm is threatened, and the utility can produce documentation of  requests 
for access and/or requests for the customer to perform a meter  reading  that 
were refused.
   (c) The utility shut off  service  due  to  unauthorized  use  of  utility 
service or the customer acknowledges personal responsibility and the  utility 
bills the customer for unauthorized use of utility service.
   (d) The customer requests that the utility relocate  the  meter  or  other 
utility facilities.
   (2) If the utility moves the meter or facilities for  reasons  other  than 
the reasons in subrule (1) of this rule, and the customer wants the meter  or 
facilities placed in a different location than that selected by the  utility, 
then the customer shall pay any additional costs.

  History: 2008 AACS.


                           PART 5.  BILLING AND PAYMENTS


R 460.1612  Cycle billing.
   Rule 12. A utility may use cycle billing if each customer receives a  bill 
on or about the same day of each billing month. If a  utility  changes  meter 
reading routes or schedules by more than 7 days, it shall provide  notice  to 
affected customers at least 10 days before making the change. 

  History: 2008 AACS.


R 460.1613  Billing information.
   Rule 13. (1) The utility shall bill each customer promptly  after  reading 
the meter. The bill shall show all of the following information:
   (a) The beginning and ending meter readings of the billing period and  the 
dates thereof.
   (b) The due date.
   (c) The number and kind of units metered.
   (d) The applicable rate schedule or identification of the applicable  rate 
schedule.  If the actual rates are not shown, then the  bill  shall  carry  a 
statement to the effect that the applicable rate schedule will  be  furnished 
on request.
   (e) The gross amount or net amount of the bill,  or  both,  including  any 
applicable tax shown separately from the net amount.
   (f) The date by which the customer must pay the bill to benefit  from  any 
discount or to avoid any penalty.
   (g) A distinct marking to identify an estimated bill.
   (h) Any conversions  from  meter  reading  units  to  billing  units,  any 
calculations to determine billing units from recording or other  devices,  or 
any other factors, such as power supply cost recovery  adjustments,  used  in 
determining the bill.
   (i) The address and telephone number of the utility designating where  the 
customer may initiate an inquiry or complaint regarding the bill as  rendered 
or the service provided by the utility.
   (2) In place of the billing information in subrule (1)(h) of this rule,  a 
statement may appear on the bill advising the customer that  the  information 
can be obtained by contacting the utility. Any multiplier used  to  determine 
billing units shall be shown when used.
   (3) If the billing period differs from the meter  reading  cycle  and  the 
reading data is calculated from actual metered data, then  the  actual  meter 
reading shall be shown on the bill.

  History: 2008 AACS.


R 460.1614  Discounts and late payment charges.
   Rule 14. Where provided in an approved rate schedule, a utility may  grant 
a discount for prompt payment of a bill or may include a late payment  charge 
for failure to make prompt  payment.   Unless  the  utility's  tariff  states 
otherwise, a late payment charge of not more than 2%, not compounded, may  be 
applied to the unpaid balance outstanding, net of taxes, if the bill  is  not 
paid in full on or before the date on which the bill is due.

  History: 2008 AACS.


R 460.1615  Delivery and payment of bills.
   Rule 15.  A bill  shall  be  mailed,  transmitted,  or  delivered  to  the 
customer not less than 21 days before the due date. Failure to receive a bill 
properly mailed, transmitted, or delivered by the utility does not extend the 
due date. If the day on which the bill is due falls on Saturday, Sunday, or a 
holiday, then the bill shall be  due  on  the  next  business  day.  Customer 
remittances postmarked on the due date  shall  be  considered  to  have  been 
timely paid. If the postmark is illegible,  the  date  of  mailing  shall  be 
designated as 2 days before receipt by the utility.

  History: 2008 AACS.


R 460.1616  Billing for unregulated service.
   Rule 16.  A utility may include  charges  for  unregulated  services  with 
charges for utility service on the same monthly bill if the charges  for  the 
unregulated services are designated clearly and separately from  the  charges 
for electric  or  gas  service.  If  partial  payment  is  made,  and  if  no 
designation of the payment is given by the customer, then the  utility  shall 
first credit all payments to the balance outstanding for utility service.

  History: 2008 AACS.


R 460.1617  Billing errors.
   Rule 17. (1) If a customer has been overcharged, then  the  utility  shall 
refund or  credit  the  amount  of  the  paid  overcharge  to  the  customer. 
Overcharges shall be credited to customers with 7%  interest,  commencing  on 
the 60th day following payment. A utility is not required to adjust,  refund, 
or credit an  overcharge  beyond  the  3-year  period  immediately  preceding 
discovery of the billing error, unless the customer  is  able  to  present  a 
record establishing an earlier date of  occurrence  or  commencement  of  the 
error.
   (2) In cases of unauthorized use of utility service the  customer  may  be 
back billed for the amount of the undercharge.  The  back  bill  may  include 
interest at the same 7% interest rate applied to overcharges.
   (3) In cases not  involving  unauthorized  use  of  utility  service,  the 
customer may be back billed for the amount  of  the  undercharge  during  the 
12-month period immediately preceding discovery of  the  error.  The  utility 
shall offer the customer at least the same number  of  months  for  repayment 
equal to the time of the error. The back bill shall not include interest.

  History: 2008 AACS.


             PART 6.  CUSTOMER RELATIONS AND UTILITY PROCEDURES


R 460.1618  Selection of rate, customer information, and service.
   Rule 18. Each utility shall do all of the following:
   (a) Maintain information necessary to advise the customer  or  prospective 
customers and  others  entitled  to  the  information  about  the  facilities 
available to serve prospective customers in the utility's service area.
   (b) Assist the customer in selecting the  most  economical  rate  schedule 
based on information supplied by the  customer;  however,  selection  of  the 
appropriate rate is the responsibility of the customer. Once the selection is 
made, the customer shall stay on that rate not less than 12 months unless the 
customer notifies the utility of  permanent  changes  in  the  conditions  of 
service that warrant a different rate schedule.  
   (c) Notify customers affected by a proposed change in  rates  or  schedule 
classification by publishing a notice in newspapers of general circulation in 
the utility's service area, by giving notice to customers individually, or as 
otherwise required by the commission.
   (d) Post suitable signs in  conspicuous  locations  at  all  bill  payment 
offices  that  are  operated  by  the  utility  indicating  that  the  rules, 
regulations, rate schedules, proposed rate schedules,  explanations  of  rate 
schedules, and explanations of  proposed  rate  schedules  are  on  file  and 
available for inspection. Upon request, a utility shall provide 1 copy of the 
rules, explanations, or schedules to a customer without charge.
   (e) Upon request, inform the utility's  customers  as  to  the  method  of 
reading meters.
   (f) Furnish any reasonable additional information.

  History: 2008 AACS.


R 460.1619  Inspection.
   Rule 19. A utility shall permit authorized  staff  of  the  commission  to 
inspect all of the utility's operations that relate to customer service.

  History: 2008 AACS.

  
R 460.1620  Customer access to consumption data.
   Rule 20.  A utility shall provide to each customer, upon request, a  clear 
and concise statement of the  customer's  actual  energy  usage,  or  weather 
adjusted consumption data, for each billing period during the last 12 months, 
unless that data is not reasonably ascertainable by the  utility.  A  utility 
shall notify its customers at least once each year in writing, or by whatever 
method is used to transmit the customers' bills, that a customer may  request 
consumption data.  

  History: 2008 AACS.

  
R 460.1621  Servicing utility equipment on customer's premises.
   Rule 21. Each utility shall service and maintain its equipment used  on  a 
customer's premises and shall correctly set and keep in proper adjustment any 
devices that control the customer's service in accordance with the  utility's 
rate schedules.

  History: 2008 AACS.


R 460.1622  Customer complaints; investigation; records.
   Rule 22. The utility shall promptly and  thoroughly  investigate  customer 
complaints concerning the charges, practices, facilities, or services of  the 
utility. The utility shall keep records  of  customer  complaints  that  will 
enable the utility to review and analyze  its  procedures  and  actions.  The 
records shall be available to the commission.

  History: 2008 AACS.


R 460.1623  Records and reports.
   Rule 23. Upon request by the commission or its designated  representative, 
records which are required by these rules or  which  are  necessary  for  the 
administration of these rules shall be available within the state of Michigan 
for examination by the commission or its designated representative.

  History: 2008 AACS.

 
                           PART 7. SHUTOFFS AND RESTORATION


R 460.1624  Notice of shutoff.
   Rule 24. (1) Not less than 10 days before the proposed shutoff of  service 
to a non-residential facility,  the  utility  shall  send  a  notice  to  the 
customer that includes the following information:
   (a) A clear and concise reason for the proposed shutoff of service.
   (b) The date on or after which the utility may shut off service unless the 
customer takes appropriate action.
   (2) Not less than 10 days before the proposed  shutoff  of  service  to  a 
non-residential facility that is occupied by more than  5  business  entities 
that are not responsible for payment of the bill,  a  utility  shall  make  a 
reasonable attempt to notify each occupant that service  may  be  subject  to 
shutoff after a specified date.

  History: 2008 AACS.


R 460.1625  Denial or shutoff of service to customers.
   Rule 25. (1) Service to non-residential customers may be  denied  or  shut 
off for any of the following reasons:
   (a)  Without  notice,  if  a  condition  on  the  customer's  premises  is 
determined by the utility or a governmental agency to be hazardous.
   (b) Without notice,  if  a  customer  uses  equipment  in  a  manner  that 
adversely affects the utility's equipment or the utility's service to others.
   (c) Without notice, for unauthorized use of utility service.
   (d) Without notice, if unauthorized use of  the  equipment  furnished  and 
owned by the utility occurs, including obtaining  the  use  of  equipment  by 
submitting an application containing false information.
   (e) For violation of, or noncompliance with, the utility's rules  on  file 
with, and approved by, the commission.
   (f) For failure  of  the  customer  to  fulfill  his  or  her  contractual 
obligations for service or facilities that are subject to regulation  by  the 
commission.
   (g) For failure of the customer to permit the utility reasonable access to 
the utility's equipment.
   (h) For failure of the customer to provide the utility with a  deposit  as 
authorized by these rules. 
   (i) For nonpayment of a delinquent account for electric or gas service.
   (j) For nonpayment of unpaid balances on any other non-residential account 
incurred by the customer under a different account  name  by  the  customer's 
predecessor in interest, or by any  other  entity,  the  debt  of  which  the 
customer is legally obligated to assume.
   (2) Service to  non-residential  customers  may  not  be  denied  for  the 
following reasons:
   (a) Delinquency in payment for service  by  a  previous  occupant  of  the 
premises to be served.
   (b) Failure to pay for items such as merchandise, appliances, or  services 
that are not approved by the commission as an integral part of  the  electric 
or gas service provided by the utility.
   (c) Failure to pay for a different type or class of utility service.
   (d) Failure to pay the bill of another customer as guarantor.
   (3) Service shall not be shut off during a reasonable time period given to 
a customer to pay the amount of a back billing as provided in these rules. 
   (4) If a shutoff or termination of service to a  non-residential  customer 
occurs,  then  a  utility  may  transfer  an  unpaid  balance  to  any  other 
non-residential account of the customer.

  History: 2008 AACS.


R 460.1626  Manner of shutoff for service provided with  remote  shutoff  and 
restoration capability.
   Rule 26. (1) For an involuntary shutoff of service  using  remote  shutoff 
and restoration capability, at least 1 day before  shutoff  of  service,  the 
utility shall make at least 2 attempts to contact the customer by  telephone, 
if a telephone number is available to the utility, to advise the customer  of 
the pending shutoff and what steps the customer must take to avoid shutoff.   
The utility shall either document all attempts to  contact  the  customer  or 
shall document that automated procedures are in place that will make at least 
2 attempts to contact the customer by telephone.  If the telephone number  is 
not available, the customer has no telephone, or the telephone  contacts  are 
not made, then the utility shall  either  leave  a  notice  at  the  premises 
advising the customer that service will be  shutoff  on  or  after  the  next 
business day or send  notice  by  first-class  mail  postmarked  at  least  5 
business days before shutoff of  service  is  scheduled.   The  notice  shall 
conspicuously state that the disconnection of service will be  done  remotely 
and that a utility representative will not  return  to  the  premises  before 
disconnection.  
   (2) The utility shall document all attempts to contact the customer.  
   (3) If the utility contacts the customer or other  responsible  person  at 
the customer's premises by telephone on the day service is to  be  shut  off, 
the utility shall inform  the  customer  or  other  responsible  person  that 
shutoff of service is imminent and the steps  that  are  necessary  to  avoid 
shutoff.  Unless the customer presents evidence that reasonably  demonstrates 
that the claim is satisfied or is in dispute, or the customer makes  payment, 
the utility may shut off service. 
   (4) If the utility mailed  the  notice  of  shutoff  to  the  customer  as 
provided in subrule (1) of this rule,  and  if  telephone  contact  with  the 
customer cannot be made, then no further customer contact is required on  the 
day service is to be shut off and the utility may shut off service.

  History: 2008 AACS.


             PART 8.  DISPUTED CLAIMS, HEARINGS AND SETTLEMENT AGREEMENTS


R 460.1628  Disputed claim.  
   Rule 28. (1) If a customer advises a  utility,  before  the  date  of  the 
proposed shutoff of service, that all or part of a bill is in  dispute,  then 
the utility shall do all of the following:
   (a) Immediately record the date, time, and place  the  customer  made  the 
complaint and transmit verification to the customer.
   (b) Investigate the dispute promptly and completely.
   (c) Advise the customer of the results of the investigation.
   (d) Attempt to  resolve  the  dispute  informally  in  a  manner  that  is 
satisfactory to both parties.
   (e) Provide the opportunity for the customer to settle the disputed  claim 
or to satisfy any liability that is not in dispute.
   (2) A customer may advise a utility that a claim  is  in  dispute  in  any 
reasonable manner, such as by written notice, in person, or  by  a  telephone 
call directed to the utility.
   (3) A utility, in attempting to resolve the dispute, may employ  telephone 
communication, personal meetings, on-site visits, or any other technique that 
is reasonably conducive to obtaining a settlement.

  History: 2008 AACS.


R 460.1629  Settlement agreement.
   Rule 29. (1) If the utility and a small commercial customer  arrive  at  a 
mutually satisfactory settlement of any claim in  dispute,  or  the  customer 
does not dispute liability to the utility but claims  inability  to  pay  the 
outstanding bill in full, a utility shall offer the customer  an  opportunity 
to enter into a settlement agreement.
   (2) The utility shall confirm the terms of the settlement  agreement  with 
the customer and shall send a copy of the settlement to the customer  or  the 
customer's authorized representative. The utility shall retain  documentation 
of the original settlement agreement for 2 years.  In case of a dispute  over 
the terms of a settlement agreement, the utility shall  have  the  burden  of 
proving that the customer understood and accepted the terms of the settlement 
agreement.
   (3)  Every  settlement  agreement  entered  into  due  to  the  customer's 
inability to pay the outstanding bill in full shall provide that service will 
not be  discontinued  if  the  customer  pays  a  reasonable  amount  of  the 
outstanding bill and agrees to pay a  reasonable  portion  of  the  remaining 
outstanding balance in installments until the bill is paid.  

  History: 2008 AACS.

   
R 460.1630  Default of settlement agreement.
   Rule 30. (1) If a small commercial customer fails to comply with the terms 
and conditions of a settlement agreement, a utility may  discontinue  service 
after notifying the customer, in writing, by personal service or  first-class 
mail, of all of the following:
   (a) That the customer is in default of the settlement agreement.
   (b) The nature of the default.
   (c) That unless full payment of the  claim  is  made  within  10  days  of 
mailing of the notice, the utility will discontinue service.
   (d) The date upon which service is scheduled to be discontinued.
   (2) A utility is not required to  enter  into  any  subsequent  settlement 
agreement with a customer until the customer  has  fully  complied  with  the 
terms of any previous settlement agreement.
   (3) A utility is not required to  enter  into  any  subsequent  settlement 
agreement with a customer who has defaulted upon the terms and conditions  of 
a previous agreement.
   (4)  If  a  settlement  agreement  is  reached  following  a   notice   of 
discontinuance, the failure of the customer to abide  by  the  terms  of  the 
settlement agreement during the first 60 days after  the  agreement  is  made 
constitutes a waiver of the notice required by  subrule  (1)  of  this  rule. 
However, before discontinuance,  a  utility  shall  comply  with  the  notice 
requirements of these rules.

  History: 2008 AACS.

 
R 460.1631  Informal hearing and hearing officers.
   Rule 31. (1) If the parties are unable to resolve the  dispute,  then  the 
utility shall  offer  small  commercial  customers  the  opportunity  for  an 
informal hearing before a hearing officer selected from  a  list  of  hearing 
officers previously filed with the commission. 
   (2) If the customer chooses to have an informal hearing, then the customer 
shall do both of the following:
   (a) Notify the utility within 5 business days of acceptance of the utility 
offer for an informal hearing.
   (b) Pay the amount not in dispute, or, if the utility and customer  cannot 
agree, pay 50% of the disputed amount.   
   (3) When the customer notifies the utility of  the  intent  to  pursue  an 
informal hearing the utility shall do all of the following:
   (a) Complete the necessary investigation.
   (b) Schedule the hearing within 10 business days of the customer's request 
for a hearing.
   (c) Hold the hearing within 30 business days of the customer's request for 
a hearing. 
   (4) If the customer fails to pay the part of the bill that  is  determined 
under subrule (2)(b) of this rule within 10 business days of  the  date  that 
the utility sends the hearing notice, then the utility may exercise its right 
to shut off service pursuant to these rules.
   (5) A utility shall select hearing officers on the basis  of  all  of  the 
following:
   (a) They are on the list of hearing officers filed with the commission.
   (b) They are notaries public qualified to administer oaths.
   (c) They are not engaged in any other activities for or on behalf  of  the 
utility.
   (6) If the dispute is ultimately resolved in favor  of  the  customer,  in 
whole or in part, then the utility shall return promptly  any  excess  amount 
paid by the customer, with interest at the rate specified in these rules.

  History: 2008 AACS.


R 460.1632  Notice of hearing.
   Rule 32. (1) The utility shall personally serve the customer with  written 
notice of the time, date, and place of the hearing on the day  scheduling  is 
determined.
   (2) The notice shall describe the hearing procedures as contained in these 
rules.
   (3) The notice shall include the amount of the required  payment  and  due 
date of 10 business days from the date of the notice. 

  History: 2008 AACS.

 
R 460.1633  Hearing procedures.
   Rule 33. (1) A utility shall establish hearing procedures that ensure  the 
impartiality and integrity of  the  hearing  process  and  that  provide  the 
customer and the utility with all of the following:
   (a) The right to represent themselves or to  be  assisted  by  persons  of 
their choice who are not attorneys.
   (b) The right to examine, not less than 2 business days before a scheduled 
hearing, a list of all witnesses who will testify and all documents, records, 
files, account data, and similar material that may be relevant to the  issues 
to be raised at the hearing.
   (c) The right  to  present  evidence,  testimony,  and  oral  and  written 
argument.
   (d) The right to question witnesses appearing on behalf of the other party.
   (2) A hearing shall be held during normal business hours.  A utility shall 
take reasonable steps to ensure that a customer who is  unable  to  attend  a 
hearing due to physical incapacity is not denied  the  right  to  a  hearing. 
Failure of the customer, or the utility, to attend the hearing  without  good 
reason, or without having requested an adjournment, constitutes a  waiver  of 
that party's right to the hearing.
   (3) The utility has the burden of proof by a preponderance of the evidence.
   (4) All witnesses who appear for either party shall testify under oath.
   (5) A hearing shall be informal and the proceedings need not  be  recorded 
or transcribed. All relevant evidence shall be received and the formal  rules 
of evidence shall not apply.
   (6) For each hearing where the customer has not put his or her position in 
writing, the hearing officer shall compile a record that contains all of  the 
following:
   (a) A concise statement, in writing, of the position of the utility.
   (b) A concise statement, in writing, of the position of the customer.
   (c) Copies of all evidence submitted by the parties.
   (7) At the conclusion of the hearing, the hearing officer may orally state 
his or her findings and decision, or  adjourn  the  hearing  and  inform  the 
parties that the decision will be transmitted within 7 business days. At  the 
request of the customer, the hearing officer shall adjourn  the  hearing  and 
transmit the decision within 7 business  days.  In  all  cases,  the  hearing 
officer shall issue a complaint determination in a form that is  approved  by 
the commission.  The  complaint  determination  shall  contain  both  of  the 
following:
   (a) A concise summary of the  evidence  and  arguments  presented  by  the 
parties.
   (b) The decision, and the reasons for the decision, based solely upon  the 
evidence received.
   (8) At the conclusion of the  hearing  and  again  upon  issuance  of  the 
complaint determination, the hearing officer shall advise  the  customer  and 
the utility of all of the following:
   (a) That each party has the right  to  make  an  informal  appeal  to  the 
commission staff, by mail, telephone, internet, fax, or in person,  within  7 
business days of issuance of the complaint determination.
   (b) That, if appealed, the decision of the hearing  officer,  including  a 
finding that service may be shut off, cannot be implemented until a review by 
the commission staff is completed.
   (c) The address and telephone number where the customer or the utility may 
make an informal appeal to the commission staff.
   (9) Before issuance of a complaint determination, the hearing officer  may 
propose a settlement to the parties.  If both parties accept the  settlement, 
it shall be put in writing and signed by both parties.
   (10) Within 7 business days of the conclusion of the hearing, the  hearing 
officer shall serve the parties with all of the following:
   (a) A copy of the complaint determination.
   (b) Appeal information as provided in subrule (8) of this rule.
   (c) If applicable, a copy of the signed settlement agreement  as  provided 
in subrule (9) of this rule.
   (11) The complaint determination and  a  copy  of  the  signed  settlement 
agreement, if any, shall be made part of  the  hearing  record.  The  hearing 
officer shall certify the hearing record.
   (12) The complaint determination  is  binding  upon  the  parties,  unless 
appealed, as provided in these rules.
   (13) A utility's hearing procedures shall be subject to investigation  and 
review by the commission.

  History: 2008 AACS.


R 460.1634  Informal appeal procedures.
   Rule 34. (1) The commission staff shall assign the informal  appeal  to  a 
regulation officer or another employee of the commission  as  the  commission 
may designate. The officer  or  designated  employee  shall  do  all  of  the 
following:
   (a) Advise the appealing party of the  procedures  of  the  commission  by 
telephone or in writing.
   (b) Advise the other party that an informal appeal has been filed.
   (c) Issue interim determinations as necessary.
   (d) Review or investigate the appeal as provided in these rules.
   (e) Issue an informal appeal decision.
   (2) Upon notification by the commission staff that an informal appeal  has 
been made, the utility shall promptly file, with the  commission  staff,  the 
certified hearing  record.  The  parties  shall  be  bound  by  the  evidence 
presented at the hearing and contained in the hearing record. In arriving  at 
the informal appeal decision, the regulation officer or  designated  employee 
shall not be required to receive  or  consider  any  additional  evidence  or 
information.
   (3) In all informal appeals, the utility has the  burden  of  proof  by  a 
preponderance of the evidence.

  History: 2008 AACS.


R 460.1635  Interim determination.
   Rule 35. (1) After receiving the hearing  record  and  pending  the  final 
resolution of an  informal  appeal,  the  regulation  officer  or  designated 
employee may issue  an  interim  determination  with  appropriate  terms  and 
conditions. In the case of  an  appeal  regarding  a  bill  or  deposit,  the 
regulation officer or designated employee may require a customer to  pay  the 
undisputed portion of a claim in order to continue  the  prohibition  against 
the shutoff of service as provided in these rules. The regulation officer  or 
designated employee may  consider  the  amounts  that  reasonably  appear  to 
reflect the cost of utility service in determining the undisputed portion  of 
a claim.
   (2) If a customer fails to abide by the terms and conditions of an interim 
determination within 10 days of the date of personal service  or  mailing  of 
the interim determination by first-class mail, then the utility may shut  off 
service as provided in these rules.

  History: 2008 AACS.


R 460.1636  Appeal review.
   Rule 36. The regulation officer or designated employee  shall  review  the 
informal   appeal   thoroughly   and,   when   necessary,   conduct   further 
investigation. A party may offer new evidence if the  regulation  officer  or 
designated  employee  determines  that   it   is   relevant.   When   further 
investigation is necessary, the regulation officer or designated employee may 
request additional evidence or, at his or her own  initiative,  may  hold  an 
informal appeal conference with the parties or  their  representatives  at  a 
time and place designated by the officer or employee. If either  party  fails 
to appear at the informal conference without a good reason or without  having 
requested an adjournment, then the right of the absent party to appear at the 
conference shall be waived. At an informal appeal conference, the parties may 
do all of the following:
   (a) Represent themselves or be assisted by persons of their choice who are 
not attorneys.
   (b) Offer oral and documentary evidence, which may be  considered  at  the 
discretion of the regulation officer.
   (c) Refute, in a reasonable manner, the evidence of the other party.
   (d) Submit an oral or written statement of position.

  History: 2008 AACS.


R 460.1637  Shutoff pending decision.
   Rule 37. A utility shall not shut off service or issue a notice of shutoff 
related to the matter in dispute  pending  the  decision  of  the  commission 
staff, except pursuant to the terms of an interim determination.

  History: 2008 AACS.


R 460.1638  Informal appeal decision.
   Rule 38. The regulation officer or other employee  so  designated  by  the 
commission shall, within 30  days  after  the  utility  files  the  certified 
record, issue a written informal appeal  decision  affirming,  modifying,  or 
reversing the informal hearing determination. In reversing or  modifying  the 
informal hearing determination, the decision shall set forth  the  terms  and 
conditions  for  continued  service,  shutoff,  or  a   proposed   settlement 
agreement, as required by the facts and  circumstances.  The  decision  shall 
state the relevant findings of  fact,  the  reasons  for  the  decision,  and 
remedies for failure to comply with the informal appeal decision. A  copy  of 
the informal appeal decision shall be served  personally  or  by  first-class 
mail on the parties.

  History: 2008 AACS.


R 460.1639  Failure to comply with informal appeal decision.
   Rule 39. Failure of either party to comply with  the  decision  within  10 
days from the date of service by mailing shall permit implementation  of  the 
action or remedy provided by the decision.

  History: 2008 AACS.


R 460.1640  Scope of rules.
   Rule 40. (1) Nothing contained in these rules covering  billing  practices 
applicable  to  non-residential  electric  and  gas   customers   should   be 
implemented in a manner that circumvents or is inconsistent with these rules, 
commission orders, or utility tariffs approved by the  commission  to  ensure 
the safe and reliable delivery of energy service.
   (2) After notice and an opportunity to be heard, utilities  determined  by 
the commission to be in violation of these rules  shall  be  subject  to  all 
damages and fines contained within the statutes under which these  rules  are 
promulgated.
   (3) Upon written request of a person, utility, or on its own  motion,  the 
commission may temporarily waive any requirements  of  these  rules  when  it 
determines the waiver will further the effective and efficient administration 
of these rules and is in the public interest.  

  History: 2008 AACS.