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2024 SESSION

24104314D
SENATE BILL NO. 480
Offered January 10, 2024
Prefiled January 9, 2024
A BILL to amend the Code of Virginia by adding in Chapter 21 of Title 15.2 an article numbered 2.1, consisting of sections numbered 15.2-2121.1 through 15.2-2121.6, by adding in Chapter 3.2 of Title 44 a section numbered 44-146.29:4, and by adding in Article 2 of Chapter 10 of Title 56 sections numbered 56-245.1:3 through 56-245.1:6, relating to public utilities; municipal utilities; disconnection of service; limitations; report; consumer protections.
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Patron-- Aird
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Referred to Committee on Commerce and Labor
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Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 21 of Title 15.2 an article numbered 2.1, consisting of sections numbered 15.2-2121.1 through 15.2-2121.6, by adding in Chapter 3.2 of Title 44 a section numbered 44-146.29:4, and by adding in Article 2 of Chapter 10 of Title 56 sections numbered 56-245.1:3 through 56-245.1:6 as follows:

Article 2.1.
Disconnection Provisions for Public Utilities.

§ 15.2-2121.1. Definitions.

As used in this article, "utility" means a public utility that is owned or operated by a locality of the Commonwealth.

§ 15.2-2121.2. Disconnection suspension for utilities.

A. 1. No electric utility shall disconnect from service any residential customer for the nonpayment of bills or fees (i) when the forecasted temperature low is at or below 32 degrees Fahrenheit within the 24 hours following the scheduled disconnection or (ii) when the forecasted heat index is at or above 95 degrees Fahrenheit within the 24 hours following the scheduled disconnection.

2. No gas utility shall disconnect from service any residential customer for nonpayment of bills or fees when the forecasted temperature low is at or below 32 degrees Fahrenheit within the 24 hours following the scheduled disconnection.

3. No water or wastewater utility shall disconnect from service any residential customer when the forecasted heat index is at or above 95 degrees Fahrenheit within the 24 hours following the scheduled disconnection.

B. No utilities shall disconnect from service any residential customer for nonpayment of bills or fees on Fridays, weekends, state holidays, or the day immediately preceding a state holiday.

C. Nothing in this section shall be construed to limit utilities from voluntarily suspending scheduled disconnections during other extreme weather events, emergency conditions, or circumstances in which a utility determines such suspension is necessary to protect the health and safety of its customers and the reliability of utility service in the Commonwealth. Any fees or expenses incurred by a utility in complying with the requirements of this section shall be recovered by the utility.

§ 15.2-2121.3. Reconnection of utility service.

No such utility shall hold payment of associated fees, including disconnection fees, reconnection fees, late charges, and other fees, as a condition for restoration of service once payment of arrearage, less any fees, has been received or a repayment arrangement is entered into between such utility and the customer.

§ 15.2-2121.4. Notice procedures for nonpayment; disconnecting utility service.

A. Each utility subject to the provisions of this article shall provide to each of its residential customers a copy of its disconnection for nonpayment policy (i) at any time a new residential account is established, (ii) when any disconnection for nonpayment of bills or fees is scheduled by including a copy of the policy with such notice, and (iii) by publishing the disconnection policy on the utility's website. Each such utility shall provide all required notices in English and Spanish. Required notices shall include information regarding payment plans and state, federal, or utility energy assistance programs.

B. Each utility subject to the provisions of this article shall deliver notice of nonpayment of bills or fees to its residential customers by mail, via text message, or by phone call. Each such utility shall deliver notice of a potential disconnection by visiting the residence if the customer has a serious medical condition form on file with the utility.

C. Utility disconnections due to the nonpayment of bills or fees are prohibited prior to three consecutive payments being missed. After each missed payment, the utility shall provide notice pursuant to subsection B and make contact with the customer and offer bill payment assistance, arrange a payment plan, or provide information to the customer for other bill payment assistance or energy savings programs.

D. No electric or gas utility shall require a deposit of more than 25 percent of the arrearage amount for service, exclusive of nonpayment fees, penalties, or interest, in order to restore service to any residential customer that is a recipient of the federal Low-Income Home Energy Assistance Program.

§ 15.2-2121.5. Utility data transparency; annual report.

Each utility subject to the provisions of this article shall make publicly available the following information organized by zip code for each immediately preceding month:

1. The number of residential utility customers on the last day of each month;

2. The total dollar amount and average amount billed to and collected from residential customers and the average utility usage per residential customer;

3. The number of residential customers receiving assistance under each applicable utility assistance program on the last day of each month;

4. The number of residential customers receiving service disconnection notices due to nonpayment of bills or fees;

5. The number of residential customers disconnected from service due to nonpayment of bills or fees;

6. The number of residential customers with service reconnected after being disconnected due to nonpayment of bills or fees;

7. The average time between service disconnection due to nonpayment of bills or fees and service reconnection for residential customers;

8. The number of residential customers who became eligible for disconnection due to nonpayment of bills or fees but were not disconnected because of a medical protection program;

9. The number of residential customers charged late fees and the total dollar amount and average amount of those fees;

10. The number of residential customers charged reconnection fees and the total dollar amount and average amount of those fees;

11. The number of residential customers charged penalties other than late fees and reconnection fees and the total dollar amount and average amount of those penalties;

12. The number of residential customers in arrears by 30, 60, and 90 days on the last day of each month and the total dollar amount and average amount owed in each category;

13. The number of residential customers enrolled in deferred payment agreements on the last day of each month, the total dollar amount and average amount of arrears owed by customers subject to such agreements, and the average length of the repayment term;

14. The number of residential customers who successfully entered into a new deferred payment agreement, the number of residential customers who successfully completed a deferred payment agreement, the number of residential customers who defaulted on a deferred payment agreement, and the total dollar amount and average amount of arrears for residential customers subject to such agreements;

15. The number of residential customers with accounts that were referred to a third party for the purpose of debt collection and the number of residential customers contacted by the utility to inform them that their account debt has been reported to a third party for the purpose of debt collection;

16. The number of residential customers with accounts reported to a credit reporting agency and the number of residential customers contacted by the utility to inform them that their account debt has been reported to a credit reporting agency; and

17. The number of liens on real property placed, sold, or enforced against residential customers due to nonpayment of bills or fees on utility accounts, if applicable.

§ 15.2-2121.6. Civil action for violation of article.

A. Any utility subject to the provisions of this article that violates the provisions of this article shall be civilly liable for damages of up to $1,000 and reasonable attorney fees, plus provable damages caused as a result of such violation, and be subject to such other remedies, legal or equitable, including injunctive relief, as may be available to the party damaged by such violation. Such action shall be brought in the circuit court of the jurisdiction wherein the utility is located.

B. No action may be brought under the provisions of this article for a cause of action that arises more than two years prior to the date on which such action is brought.

§ 44-146.29:4. Disconnection suspension for certain utilities.

In the case of any state of emergency declared by the Governor in response to a communicable disease of public health threat, each utility that is engaged in the business of furnishing electricity, gas, water, or wastewater service and subject to the regulation of the State Corporation Commission or owned or operated by a municipality shall be suspended from disconnecting service to residential customers for nonpayment of bills or fees for 30 days upon the declaration of such emergency.

§ 56-245.1:3. Disconnection suspension for utilities.

A. As used in this section, "utility" means an electric company, a natural gas supplier, or a water supplier or wastewater service provider that is subject to the regulation of the Commission.

B. 1. No electric utility shall disconnect from service any residential customer for the nonpayment of bills or fees (i) when the forecasted temperature low is at or below 32 degrees Fahrenheit within the 24 hours following the scheduled disconnection or (ii) when the forecasted heat index is at or above 95 degrees Fahrenheit within the 24 hours following the scheduled disconnection.

2. No gas utility shall disconnect from service any residential customer for nonpayment of bills or fees when the forecasted temperature low is at or below 32 degrees Fahrenheit within the 24 hours following the scheduled disconnection.

3. No water or wastewater utility shall disconnect from service any residential customer when the forecasted heat index is at or above 95 degrees Fahrenheit within the 24 hours following the scheduled disconnection.

C. No utilities shall disconnect from service any residential customer for nonpayment of bills or fees on Fridays, weekends, state holidays, or the day immediately preceding a state holiday.

D. Nothing in this section shall be construed to limit utilities from voluntarily suspending scheduled disconnections during other extreme weather events, emergency conditions, or circumstances in which a utility determines such suspension necessary to protect the health and safety of its customers and the reliability of utility service in the Commonwealth. Any fees or expenses incurred by a utility in complying with the requirements of this section shall be recovered by the utility.

§ 56-245.1:4. Reconnection of utility service.

A. As used in this section, "utility" has the same meaning as provided in § 56-245.1:3.

B. No such utility shall hold payment of associated fees, including disconnection fees, reconnection fees, late charges, and other fees, as a condition for restoration of service once payment has been received or a repayment arrangement is entered into between such utility and the customer.

§ 56-245.1:5. Notice procedures for nonpayment; disconnecting utility service.

A. Each utility subject to the requirements of § 56-245.1:3 shall provide to each of its residential customers a copy of its disconnection for nonpayment policy (i) at any time a new residential account is established, (ii) when any disconnection for nonpayment of bills or fees is scheduled by including a copy of the policy with such notice, and (iii) by publishing the disconnection policy on the utility's website. Each such utility shall provide all required notices in English and Spanish. Required notices shall include information regarding payment plans and state, federal, or utility energy assistance programs.

B. Each utility subject to the provisions of this section shall deliver notice of nonpayment of bills or fees to its residential customers by mail, via text message, or by phone call. Each such utility shall deliver notice of a potential disconnection by visiting the residence if the customer has a serious medical condition form on file with the utility.

C. Utility disconnections due to the nonpayment of bills or fees are prohibited prior to three consecutive payments being missed. After each missed payment, the utility shall provide notice pursuant to subsection B and make contact with the customer and offer bill payment assistance, arrange a payment plan, or provide information to the customer for other bill payment assistance or energy savings programs.

D. No electric or gas utility shall require a deposit of more than 25 percent of the arrearage amount for service, exclusive of nonpayment fees, penalties, or interest, in order to restore service to any residential customer that is a recipient of the federal Low-Income Home Energy Assistance Program.

§ 56-245.1:6. Utility data transparency; annual report.

A. Each utility subject to the provisions of § 56-245.1:3 shall make publicly available the following information organized by zip code for each immediately preceding month:

1. The number of residential utility customers on the last day of each month;

2. The total dollar amount and average amount billed to and collected from residential customers and the average utility usage per residential customer;

3. The number of residential customers receiving assistance under each applicable utility assistance program on the last day of each month;

4. The number of residential customers receiving service disconnection notices due to nonpayment of bills or fees;

5. The number of residential customers disconnected from service due to nonpayment of bills or fees;

6. The number of residential customers with service reconnected after being disconnected due to nonpayment of bills or fees;

7. The average time between service disconnection due to nonpayment of bills or fees and service reconnection for residential customers;

8. The number of residential customers who became eligible for disconnection due to nonpayment of bills or fees but were not disconnected because of a medical protection program;

9. The number of residential customers charged late fees and the total dollar amount and average amount of those fees;

10. The number of residential customers charged reconnection fees and the total dollar amount and average amount of those fees;

11. The number of residential customers charged penalties other than late fees and reconnection fees and the total dollar amount and average amount of those penalties;

12. The number of residential customers in arrears by 30, 60, and 90 days on the last day of each month and the total dollar amount and average amount owed in each category;

13. The number of residential customers enrolled in deferred payment agreements on the last day of each month, the total dollar amount and average amount of arrears owed by customers subject to such agreements, and the average length of the repayment term;

14. The number of residential customers who successfully entered into a new deferred payment agreement, the number of residential customers who successfully completed a deferred payment agreement, the number of residential customers who defaulted on a deferred payment agreement, and the total dollar amount and average amount of arrears for residential customers subject to such agreements;

15. The number of residential customers with accounts that were referred to a third party for the purpose of debt collection and the number of residential customers contacted by the utility to inform them that their account debt has been reported to a third party for the purpose of debt collection;

16. The number of residential customers with accounts reported to a credit reporting agency and the number of residential customers contacted by the utility to inform them that their account debt has been reported to a credit reporting agency; and

17. The number of liens on real property placed, sold, or enforced against residential customers due to nonpayment of bills or fees on utility accounts, if applicable.

B. The Commission shall establish standards for monthly reporting requirements for each utility subject to the provisions of § 56-245.1:3, and the reported data shall be disclosed publicly on the Commission's website.

C. Each utility subject to the provisions of § 56-245.1:3 shall file an annual report with the Commission that sets forth the following information:

1. A description of available customer assistance programs, including the terms of eligibility, the available budget for each program, any changes to the program during the reporting year, and any planned future changes to the program;

2. The utility's benchmarks, goals, or targets regarding customer assistance programs, if any, and the utility's performance relative to those benchmarks, goals, or targets during the reporting year;

3. The utility's policies regarding disconnection of service, including the minimum amount of arrears required before a customer is issued a notice of disconnection, the minimum time between nonpayment of bills or fees and the issuance of a notice of disconnection, and the minimum time between issuance of a notice of disconnection and disconnection of service. The utility shall include information regarding how, if at all, such policies differ based on a customer's assessed risk, payment history, or other factors;

4. The utility's policies regarding debt collection, including the minimum amount of arrears required before a customer's account is sent to a third party for the purpose of debt collection and information regarding how, if at all, such policies differ based on a customer's assessed risk, payment history, or other factors;

5. The utility's cost of disconnecting a customer from service, per circumstance, differentiated between advanced metering infrastructure (AMI) and non-AMI accounts, and the cost of service disconnections to the utility overall, including gross and net costs, as well as the amount of debt written off or sold;

6. Excluding any customer-specific communications, the methods and contents of communications and notices to customers regarding available customer assistance programs, disconnection of service, debt collection, and customer rights and remedies, including a medical protection program; and

7. The utility's schedule of rates and charges.

As used in this subsection, "charges" means the amounts billed to a customer under specific circumstances that are not included in the provider's base rate, including late fees, connection fees, impact fees for new development, deposits for opening new accounts, and any other fees, surcharges, or penalties. As used in this subsection, "rates" means the fixed component, if any, and the volumetric or other variable component, if any, of the cost of service that are applied to a category of customers.

D. The Commission shall, by January 31 of each calendar year, prepare and publish a report containing the following information:

1. A plain language summary of the data reported by utilities pursuant to this section, including any significant trends or changes concerning customer assistance programs, service disconnections, and debt collection;

2. The Commission's assessment of the impact of customer assistance programs, service disconnection policies, and debt collection policies on the affordability and accessibility of utility service, including whether certain customer segments, by zip code, income level, and racial group, are disproportionately impacted by a utility's disconnection or debt collection policies;

3. The Commission's assessment of whether additional data reporting is prudent for understanding and addressing issues related to affordability and accessibility of utility service; and

4. The Commission's assessment of whether the data reported by utilities pursuant to this section indicates any significant issues impacting the public health, safety, or welfare such that it requires further investigation by the Commission.

E. No information required to be reported pursuant to this section shall include the personally identifiable information of any utility customer.

F. Notwithstanding any other provision of law, the Commission shall have jurisdiction over each utility identified in subsection A of § 56-245.1:3 for the purposes of enforcing the requirements of this section. Upon a written showing by such a utility that compliance with the reporting requirements of this section would result in an unjust and unreasonable rate increase, the Commission may (i) provide technical and financial assistance to assist the utility's reporting or (ii) establish alternative reporting requirements for such utility. Any such alternative reporting requirements established by the Commission shall include the reporting of information from subdivisions A 1 through A 6, A 9, and A 13.

2. That the State Corporation Commission (the Commission) may, in its discretion, direct a utility subject to the Commission's jurisdiction and the provisions of §§ 44-146.29:4 and 56-245.1:3 of the Code of Virginia, as created by this act, to extend or otherwise modify a suspension or limitation on disconnecting service to residential customers beyond the time periods prescribed by this act (i) if the Commission finds such extension or modification to be necessary or in the public interest and (ii) provided that any such modification does not shorten the disconnection suspension under § 44-146.29:4 of the Code of Virginia, as created by this act, to a time period of less than 30 days. Prior to issuing any such extension or modification, the Commission shall convene a stakeholder meeting to seek input from utility representatives, interested parties, and customers to inform such decision and determine whether such decision is in the public interest.