Section 3.52.445. Deferred payment agreements.

	(a)  For a residential customer who demonstrates that economic hardship prevents payment in full of a delinquent bill, a utility may not refuse to restore or continue service unless the customer refuses to agree to or comply with a deferred payment plan meeting the requirements of this section.  
	(b)  A deferred payment agreement between a utility and a residential customer must provide that service will continue if the customer meets all of the following conditions:  
		(1) the customer agrees to pay one-third, or less at the option of the utility, of the outstanding bill at the time the parties enter into the deferred payment agreement;  
		(2) the customer agrees to pay all future bills for utility service in accordance with the effective billing and collection tariffs of the utility; and  
		(3) the customer agrees to pay the remaining outstanding balance in installments over a period not to exceed 12 months.  
	(c)  The duration of a deferred payment agreement must be at least three months unless the customer agrees to a shorter period.  
	(d)  A utility may include provisions for deferred payment agreements with non-residential customers in its tariff, or may negotiate them by special contract.  
	(e)  In determining a reasonable deferred payment schedule, a utility and customer shall consider the following conditions, a list of which must be presented to the customer:  
		(1) size of the delinquent account;  
		(2) customer's ability to pay;  
		(3) customer's payment history;  
		(4) length of time the debt has been outstanding;  
		(5) circumstances that resulted in the outstanding debt; and  
		(6) any other relevant factors related to the circumstances of the customer.  
	(f)  A deferred payment agreement must be in writing and must be signed by the customer and an authorized utility representative. A deferred payment agreement may include a finance charge as specified in the utility's effective tariff, but the charge may not exceed that allowed by AS 45.45.010(a).  
	(g)  A utility shall offer comparable terms and conditions to customers with similar payment problems.  
	(h)  If a customer fails to fulfill the terms of a deferred payment agreement, the utility may disconnect service under 3 AAC 52.450(d). The utility may offer a subsequent deferred payment agreement before disconnecting the customer's service.  

Authorities

42.05.141;42.05.151;42.05.291

Notes

Reference

3 AAC 52.440

Authority

AS 42.05.141 AS 42.05.151 AS 42.05.291

History

Eff. 1/1/87, Register 100