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2 | 2 | | 1 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | |
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7 | 7 | | Statement of Introduction |
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8 | 8 | | Utility Disconnection Protection Act of 2024 |
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9 | 9 | | May 24, 2024 |
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10 | 10 | | |
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11 | 11 | | |
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12 | 12 | | Today, along with Councilmember Trayon White, I am introducing the “Utility |
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13 | 13 | | Disconnection Protection Act of 2024”. This bill prohibits an electric company or gas |
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14 | 14 | | company from disconnecting service for protected District households during the summer |
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15 | 15 | | and winter months. The bill establishes the program under the Department of Energy and |
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16 | 16 | | the Environment. The bill also requires the establishment of guidelines for payment plans |
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17 | 17 | | for eligible customers and sets limits on what providers can charge to turn utilities back |
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18 | 18 | | on after they have been disconnected due to non-payment. Finally, the bill requires that |
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19 | 19 | | an electric company or gas company report data on unpaid bills and disconnections to the |
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20 | 20 | | Public Service Commission monthly. This act is a permanent and narrower version of the |
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21 | 21 | | protections that were in place during the public health emergency, and will work in |
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22 | 22 | | tandem with B25-0675, the “Water is Life Amendment Act of 2024” introduced by |
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23 | 23 | | Councilmember Parker, which prohibits water companies from disconnecting water |
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24 | 24 | | service. |
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25 | 25 | | |
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26 | 26 | | Shutting off a home’s energy supply can have grave consequences on its residents’ |
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27 | 27 | | health and financial wellbeing. Energy insecurity can often lead to physical and mental |
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28 | 28 | | health challenges, including difficulty sleeping, poor respiratory health, and food |
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29 | 29 | | insecurity, and at times, can be fatal. Those who are behind on their utility bills also face |
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30 | 30 | | economic repercussions, such as eviction or foreclosure. This can negatively impact their |
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31 | 31 | | credit scores and bar them from establishing utility accounts in the future. |
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32 | 32 | | 1 |
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33 | 33 | | In 2022, |
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34 | 34 | | District households had their gas and electricity cut off nearly 8,800 times for nonpayment |
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35 | 35 | | - disproportionately impacting low-income and Black and brown communities. |
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36 | 36 | | 2 |
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37 | 37 | | |
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38 | 38 | | |
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39 | 39 | | 1 |
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40 | 40 | | Which Americans Face the Greatest Risk of Utility Shut-Offs, and How Do they Cope? | Housing Matters |
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41 | 41 | | (urban.org) |
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42 | 42 | | 2 |
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43 | 43 | | Pepco disconnected customers 4,217 times last year. See Potomac Electric Power Company’s December |
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44 | 44 | | 2022 Compliance with DC PSC Case Nos. 813-1043 Order Nos. 14293 and 15134, DC Public Service |
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45 | 45 | | Commission, January 20, 2023, |
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46 | 46 | | https://edocket.dcpsc.org/apis/api/Filing/download?attachId=185094&guidFileName=453b7d4ab7e9-43ab- |
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47 | 47 | | 8a09-963cdfca5b63.pdf. |
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48 | 48 | | Washington Gas disconnected customers 4,568 times last year. See Washington Gas Light Company’s |
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49 | 49 | | Monthly Report pursuant to Order No. 15134, Public Service Commission, January 20, 2023, |
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50 | 50 | | https://edocket.dcpsc.org/apis/api/Filing/download?attachId=185081&guidFileName=67dafe64-8b13-4640- |
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51 | 51 | | bcb0- 6efc522b48bb.pdf. 2 |
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52 | 52 | | |
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53 | 53 | | To ensure that District residents have safe and affordable access to life saving |
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54 | 54 | | electricity and heat, the Utility Disconnection Protection Act of 2024 prohibits an electric |
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55 | 55 | | company or gas company from disconnecting service for protected households during the |
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56 | 56 | | hottest and coldest months. Based on current temperature data, the disconnection |
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57 | 57 | | protection will apply from May 15 through September 15, and from November 1 through |
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58 | 58 | | February 29. |
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59 | 59 | | 3 |
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60 | 60 | | Protected District households include those households with children under |
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61 | 61 | | the age of 18, seniors aged 65 and older, individuals with disabilities, and recipients of |
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62 | 62 | | certain public assistance programs. The program will be housed and administered under |
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63 | 63 | | the Department of Energy and the Environment. This legislation also ensures that all |
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64 | 64 | | eligible customers are offered a payment plan and are not charged a fee greater than $25 |
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65 | 65 | | to turn their electricity or gas back on after disconnection. Currently, utility providers are |
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66 | 66 | | not required to offer a payment plan to customers and require that a bill is paid in full |
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67 | 67 | | before turning services back on, which can amount to hundreds or thousands of dollars. |
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68 | 68 | | This bill also updates the frequency of reporting that utility companies must provide to the |
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69 | 69 | | Public Service Commission from a quarterly basis to a monthly basis. |
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70 | 70 | | Forty-eight other states have regulations in place that restrict the ability of |
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71 | 71 | | landlords and utility companies to shut off utilities, but these laws vary widely. For |
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72 | 72 | | instance, Indiana prohibits natural gas and electricity disconnections between December 1 |
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73 | 73 | | and March 15 for tenants who receive public assistance. Idaho, on the other hand, |
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74 | 74 | | prohibits disconnection from December 1 to February 28 for households with children |
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75 | 75 | | under 18 or seniors aged 62 or older. |
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76 | 76 | | 4 |
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77 | 77 | | In the District of Columbia, however, it is only |
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78 | 78 | | against the law to shut off electricity and natural gas when the temperature is forecasted |
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79 | 79 | | to be 95 degrees Fahrenheit or above or 32 degrees Fahrenheit or below. The District’s |
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80 | 80 | | temperature-based blanket ban applies to all utility customers. This bare-minimum |
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81 | 81 | | protection is inadequate for many populations in the District, and lags far behind other |
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82 | 82 | | states with comprehensive date-based protections. |
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83 | 83 | | |
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84 | 84 | | |
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85 | 85 | | 3 |
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86 | 86 | | National Centers for Environmental Information (NCEI) (noaa.gov) |
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87 | 87 | | 4 |
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88 | 88 | | State Disconnect Policies | The LIHEAP Clearinghouse (hhs.gov) _____________________________ |
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89 | 89 | | Councilmember Trayon White, Sr. |
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90 | 90 | | _____________________________ |
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91 | 91 | | Councilmember Brianne K. Nadeau |
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92 | 92 | | |
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93 | 93 | | 1 |
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94 | 94 | | |
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95 | 95 | | A BILL |
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96 | 96 | | __________ |
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97 | 97 | | |
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98 | 98 | | |
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99 | 99 | | IN THE COUNCIL OF THE DISTRICT OF COLUMBIA |
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100 | 100 | | |
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101 | 101 | | ________________ |
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102 | 102 | | |
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103 | 103 | | |
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104 | 104 | | To prohibit an electric company or gas company from disconnecting residential electric or gas 1 |
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105 | 105 | | service for protected households during the summer and winter months; to establish the 2 |
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106 | 106 | | program under the Department of Energy and the Environment; to require the 3 |
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107 | 107 | | establishment of guidelines for payment plans for all eligible customers and a maximum 4 |
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108 | 108 | | payment amount to turn utilities back on; and to require that an electric company or gas 5 |
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109 | 109 | | company report arrearage and disconnection data to the Public Service Commission on a 6 |
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110 | 110 | | monthly basis. 7 |
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111 | 111 | | 8 |
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112 | 112 | | BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 9 |
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113 | 113 | | act may be cited as the “Utility Disconnection Protection Act of 2024”. 10 |
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114 | 114 | | Sec. 2. Definitions. 11 |
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115 | 115 | | For the purposes of this act, the term: 12 |
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116 | 116 | | (1) “Disability” shall have the same meaning as provided in section 404(4) of the 13 |
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117 | 117 | | Disability Rights Protection Act of 2006, effective March 8, 2007 (D.C. Law 16-239; D.C. 14 |
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118 | 118 | | Official Code § 2-1431.01(4)). 15 |
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119 | 119 | | (2) “Electric company” shall have the same meaning as provided in section 8 of 16 |
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120 | 120 | | An Act Making appropriations to provide for the expenses of the government of the District of 17 |
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121 | 121 | | Columbia for the fiscal year ending June thirtieth, nineteen hundred and fourteen, and for other 18 |
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122 | 122 | | purposes, approved March 4, 1913 (37 Stat. 976; D.C. Official Code § 34-207). 19 |
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123 | 123 | | (3) “Eligible customer” means a utility customer that: 20 |
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124 | 124 | | (A) Has notified the utility provider of an inability to pay all or a portion 21 2 |
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125 | 125 | | of the amount due; and, 22 |
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126 | 126 | | (B) Agrees in writing to make payments in accordance with the payment 23 |
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127 | 127 | | plan. 24 |
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128 | 128 | | (4) "Gas company" shall have the same meaning as provided in section 3(11) of 25 |
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129 | 129 | | the Retail Natural Gas Supplier Licensing and Consumer Protection Act of 2004, effective 26 |
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130 | 130 | | March 16, 2005 (D.C. Law 15-227; D.C. Official Code § 34-1671.02(11)). 27 |
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131 | 131 | | (5) “Protected household” means a household that includes a resident who is: 28 |
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132 | 132 | | (A) an elderly person 65 years of age or older; 29 |
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133 | 133 | | (B) a child under 18 years of age; 30 |
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134 | 134 | | (C) an individual with a disability; or, 31 |
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135 | 135 | | (D) a recipient of any of the following public assistance programs: 32 |
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136 | 136 | | (i) Temporary Assistance for Needy Families, established under 33 |
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137 | 137 | | part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); 34 |
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138 | 138 | | (ii) the Supplemental Nutrition Assistance Program, established 35 |
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139 | 139 | | under the Food and Nutrition Act of 2008 (7 U.S.C. 2011 et seq.); 36 |
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140 | 140 | | (iii) the supplemental security income program established under 37 |
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141 | 141 | | Title XVI of the Social Security Act (42 U.S.C. 1381 et seq.); 38 |
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142 | 142 | | (iv) Low Income Home Energy Assistance Program; 39 |
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143 | 143 | | (v) Veteran’s Disability Pension; 40 |
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144 | 144 | | (vi) Veteran’s Surviving Spouse Pension; 41 |
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145 | 145 | | (vii) Lifeline; 42 |
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146 | 146 | | (viii) Medical Assistance; or, 43 |
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147 | 147 | | (ix) any other income-based assistance program identified by the 44 3 |
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148 | 148 | | Mayor. 45 |
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149 | 149 | | (6) “Utility provider” means an electric company or a gas company. 46 |
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150 | 150 | | Sec. 3. Shutoff prohibition. 47 |
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151 | 151 | | (a) A utility provider shall not disconnect residential service for any protected household 48 |
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152 | 152 | | from May 15 through September 15 and from November 1 |
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153 | 153 | | |
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154 | 154 | | through February 29. 49 |
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155 | 155 | | (b) The Department of Energy and Environment (“DOEE”) shall establish a process for 50 |
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156 | 156 | | verification of program eligibility and proof of residency and provide protected households with 51 |
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157 | 157 | | the necessary information and support. 52 |
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158 | 158 | | (c) A utility provider shall provide information on all monthly bills about the prohibitions 53 |
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159 | 159 | | established by this section, along with information about how to apply for assistance with DOEE. 54 |
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160 | 160 | | Sec. 4. Payment plan. 55 |
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161 | 161 | | (a) A utility provider shall offer a payment plan program ("program") for eligible 56 |
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162 | 162 | | customers. Under its program, a utility provider shall: 57 |
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163 | 163 | | (1) Make a payment plan available to an eligible customer for the payment of 58 |
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164 | 164 | | amounts that come due during the program period, with a minimum term length of one year, 59 |
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165 | 165 | | unless a shorter time period is requested by the eligible customer; 60 |
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166 | 166 | | (2) Waive any fee, interest, or penalty that arises out of the eligible customer 61 |
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167 | 167 | | entering into a payment plan; 62 |
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168 | 168 | | (3) Not report to a credit reporting agency as delinquent the amounts subject to 63 |
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169 | 169 | | the payment plan; 64 |
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170 | 170 | | (4) Notify all customers of the availability, terms, and application process for its 65 |
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171 | 171 | | Program; and, 66 |
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172 | 172 | | (5) Reconnect service to occupied residential property upon an eligible 67 4 |
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173 | 173 | | customer's request and not charge a fee greater than $25 for this reconnection. 68 |
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174 | 174 | | (b)(1) Customers entering into a payment plan shall be required to make payments in 69 |
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175 | 175 | | monthly installments for the duration of the payment plan unless a shorter payment schedule is 70 |
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176 | 176 | | requested by the customer. 71 |
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177 | 177 | | (2) A utility provider shall permit a customer that has entered into a payment 72 |
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178 | 178 | | plan to pay an amount greater than the monthly amount established in the payment plan. 73 |
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179 | 179 | | (3) A utility provider shall not require or request a customer provide a lump-sum 74 |
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180 | 180 | | payment under a payment plan. 75 |
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181 | 181 | | (4) A utility provider shall provide confirmation in writing to the customer of the 76 |
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182 | 182 | | payment plan entered into, including the terms of a payment plan. 77 |
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183 | 183 | | (c) A utility provider shall utilize existing procedures or, if necessary, establish new 78 |
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184 | 184 | | procedures, subject to approval by the Public Service Commission (“Commission”), to provide a 79 |
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185 | 185 | | process by which a customer may apply for a payment plan, which may include requiring the 80 |
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186 | 186 | | customer to submit supporting documentation. A utility provider shall establish a payment plan 81 |
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187 | 187 | | application process either online or by telephone. 82 |
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188 | 188 | | (d)(1) A utility provider shall approve each application for a payment plan made by an 83 |
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189 | 189 | | eligible customer. 84 |
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190 | 190 | | (2) If the customer is not eligible and the customer's application for a payment 85 |
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191 | 191 | | plan is denied, the utility provider shall inform the customer, in writing, of the denial and of the 86 |
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192 | 192 | | option to file a written complaint pursuant to subsection (g) of this section. 87 |
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193 | 193 | | (e)(1) A utility provider shall not disconnect service for non-payment of a bill or fees 88 |
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194 | 194 | | when a customer has entered into a payment plan under this section and has made payments in 89 |
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195 | 195 | | accordance with the terms of the payment plan; 90 5 |
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196 | 196 | | (2) When a customer fails to pay in full the amounts due under a payment plan 91 |
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197 | 197 | | on three separate occasions during the term of such payment plan, and the customer and utility 92 |
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198 | 198 | | provider have not mutually agreed to a modification of the terms of the payment plan, nothing 93 |
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199 | 199 | | under this section shall prevent a utility provider from either offering the customer a new 94 |
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200 | 200 | | payment plan or disconnecting service. 95 |
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201 | 201 | | (3) Notwithstanding any provision in this section, a utility provider is not 96 |
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202 | 202 | | required to offer a customer a new payment plan within one year from when a customer has 97 |
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203 | 203 | | defaulted on a previous payment plan offered pursuant to this section. 98 |
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204 | 204 | | (f)(1) A utility provider that receives an application for a payment plan pursuant to this 99 |
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205 | 205 | | section shall retain the application, whether approved or denied, for at least 3 years. 100 |
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206 | 206 | | (2) Upon request by the customer, a utility provider shall make an application for 101 |
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207 | 207 | | a payment plan available to the Commission, and the Office of the People’s Counsel; 102 |
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208 | 208 | | (g) A customer whose application for a payment plan is denied may file a written 103 |
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209 | 209 | | complaint with the Commission, and the Office of the People's Counsel. 104 |
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210 | 210 | | Sec. 5. Reporting Requirements. 105 |
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211 | 211 | | (a) A utility provider shall collect and report the following arrearage and 106 |
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212 | 212 | | disconnection data to the Public Service Commission on a monthly basis, disaggregated by Ward 107 |
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213 | 213 | | and by nine-digit zip code: 108 |
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214 | 214 | | (1) the number of residential customers; 109 |
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215 | 215 | | (2) the number of low-income residential customers; 110 |
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216 | 216 | | (3) the number of residential customers in arrears and the total dollar amount of 111 |
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217 | 217 | | those arrearages; 112 |
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218 | 218 | | (4) the number of low-income customers in arrears and the total dollar amount of 113 6 |
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219 | 219 | | their arrearages; 114 |
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220 | 220 | | (5) the number of residential terminations for non-payment; 115 |
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221 | 221 | | (6) the number of low-income residential terminations for non-payment; 116 |
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222 | 222 | | (7) the number of low-income residential service arrearage-related restorations; 117 |
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223 | 223 | | (8) the number of residential service arrearage-related restorations; 118 |
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224 | 224 | | (9) the total dollar amount of low-income residential accounts determined 119 |
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225 | 225 | | uncollectible; 120 |
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226 | 226 | | (10) the total dollar amount of residential accounts determined uncollectible; 121 |
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227 | 227 | | (11) the number of disconnection notices issued to residential customers; 122 |
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228 | 228 | | (12) the number of disconnection notices issued to low-income residential 123 |
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229 | 229 | | customers: 124 |
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230 | 230 | | (13) total revenues from low-income residential customers; 125 |
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231 | 231 | | (14) total revenues from residential customers; 126 |
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232 | 232 | | (15) the number of low-income deferred payment agreements entered into each 127 |
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233 | 233 | | month and the total dollar amount associated with each low-income deferred payment 128 |
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234 | 234 | | agreement; and 129 |
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235 | 235 | | (16) the number of residential deferred payment agreements entered into each 130 |
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236 | 236 | | month and the total dollar amount associated with each residential deferred payment agreement. 131 |
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237 | 237 | | Sec. 6. Fiscal impact statement. 132 |
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238 | 238 | | The Council adopts the fiscal impact statement of the Budget Director as the fiscal impact 133 |
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239 | 239 | | statement required by section 4a of the General Legislative Procedures Act of 1975, approved 134 |
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240 | 240 | | October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 135 |
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241 | 241 | | Sec. 7. Effective date. 136 7 |
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242 | 242 | | This act shall take effect following approval by the Mayor (or in the event of veto by the 137 |
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243 | 243 | | Mayor, action by the Council to override the veto) and a 30-day period of congressional review 138 |
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244 | 244 | | as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 139 |
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245 | 245 | | 24, 1973 (87 Stat. 813; D.C. Official Code § 1). 140 |
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