4 CCR 723-3-3411 - Low-Income Energy Assistance Act
(a) Scope and
applicability.
(I) Rule 3411 is applicable to
electric utilities, combined gas and electric utilities, and cooperative
electric association except those exempted under (II) or (III). Pursuant to §§
40-8.7-101 through 111, C.R.S.,
utilities are required to provide an opportunity for their customers to
contribute an optional amount through the customers' monthly billing
statement.
(II) Municipally owned
electric utilities, combined gas and electric utilities, or cooperative
electric associations are exempt if:
(A) the
utility operates an alternative energy assistance program to support its income
qualified customers with their energy needs and self-certifies to the
organization through written statement that its program meets the following
criteria:
(i) the amount and method for
funding of the program has been determined by the governing body; and
(ii) the program monies will be collected and
distributed in a manner and under eligibility criteria determined by the
governing body for the purpose of residential energy assistance to customers
who are challenged with paying energy bills for financial reasons, including
seniors on fixed incomes, individuals with disabilities, and income qualified
individuals; or
(B) the
governing body of the utility determines its service area has a limited number
of people who qualify for energy assistance and self-certifies to the
organization via written statement such determination.
(III) A municipally owned electric utility,
combined gas and electric utility, or cooperative electric association not
exempt under subparagraph (II), is exempt if:
(A) the utility designs and implements a
procedure to notify all customers at least twice each year of the option to
conveniently contribute to the organization by means of a monthly energy
assistance charge. Such procedure shall be approved by the governing utility.
The governing body of such utility shall determine the disposition and delivery
of the optional energy assistance charge that it collects on the following
basis:
(i) delivering the collections to the
organization for distribution; or
(ii) distributing the moneys under criteria
developed by the governing body for the purpose set forth in subparagraph
(II)(A)(ii).
(B)
Alternatively, the utility provides funding for energy assistance to the
organization by using a source of funding other than the optional customer
contribution on each customer bill that approximates the amount reasonably
expected to be collected from an optional charge on customer's bills.
(IV) A municipally owned electric
utility, combined gas and electric utility, or cooperative electric association
that is exempt under subparagraph (III) shall be entitled to participate in the
organization's low-income assistance program.
(V) Electric utilities, combined gas and
electric utilities, and cooperative electric associations that desire a change
in status must inform the organization and file a notice to the Commission
within 30 days prior to expected changes.
(b) Definitions. The following definitions
apply only in the context of rule 3411. In the event of a conflict between
these definitions and a statutory definition, the statutory definition shall
apply:
(I) "Alternative energy assistance
program" means a program operated by a municipally owned electric and gas
utility or rural electric cooperative that is not part of the energy assistance
program established pursuant to this statute.
(II) "Customer" means the named holder of an
individually metered account upon which charges for electricity or gas are paid
to a utility. "Customer" shall not include a customer who receives electricity
or gas for the sole purpose of reselling the electricity or gas to
others.
(III) "Energy assistance
program" or "Program" means the Low Income Energy Assistance Program created by
§ 40-8.7-104, C.R.S., and designed
to provide financial assistance, residential energy efficiency, and energy
conservation assistance.
(IV)
"Organization" means Energy Outreach Colorado, a Colorado nonprofit
corporation, formerly known as the Colorado Energy Assistance
Foundation.
(V) "Remittance device"
means the section of a customer's utility bill statement that is returned to
the utility company for payment. This includes but is not limited to paper
payment stubs, web page files used to electronically collect payments, and
electronic fund transfers.
(VI)
"Utility" means a corporation, association, partnership, cooperative electric
association, or municipally owned entity that provides retail electric service
or retail gas service to customers in Colorado. "Utility" does not mean a
propane company.
(c)
Plan implementation and maintenance.
(I)
Except as provided in paragraph 3411(a), each utility shall implement and
maintain a customer opt-in contribution mechanism. The utility's opt-in
mechanism shall include, at minimum, the following provisions:
(A) A description of the procedures the
utility will use to notify its customers, including those customers that make
payments electronically, about the opt-in provision prior to September 1, 2006.
Utilities may combine their efforts to notify customers into a single
state-wide or region-wide effort consistent with the participating utilities
communication programs. Each participating utility shall clearly identify its
support of the combined communications program, with its corporate name and/or
logo visible to the intended audience.
(B) A description of the additional efforts
the utility will use to inform its customers about the program to ensure that
adequate notice of the opt-in provision is given to all customers. Notification
shall include communication to all customers that the donation and related
information will be passed through to the Organization.
(C) A description of the check-off mechanism
that will be displayed on the monthly remittance device to solicit voluntary
donations. The remittance device shall include, at minimum, check-off
categories of five dollars, ten dollars, twenty dollars, and "other amount".
The remittance device must also note the name of the program as the "voluntary
energy assistance program," or if the utility is unable to identify the name of
the program individually, the utility shall use a general energy assistance
identifier approved by the Commission.
(D) A description or an example of how the
utility will display the voluntary contribution as a separate line item on the
customer's monthly billing statement and how the voluntary contribution will be
included in the total amount due. The line item must identify the contribution
as "voluntary".
(E) A description
of the notification process that the utility will use to ensure that once a
utility customer opts into the program, the energy assistance contribution will
be assessed on a monthly basis until the customer notifies the utility of the
customer's desire to stop contributing. The utility shall describe how it will
manage participation in the program when customers miss one or more voluntary
payment, or pay less than the pre-selected donation amount.
(F) Identification of the procedures the
utility will use to notify customers of their ability to cancel or discontinue
voluntary contributions along with a description of the mechanism the utility
will use to allow customers who make electronic payments to discontinue their
participation in the opt-in program.
(G) A description of the procedures the
utility will use, where feasible, to notify customers participating in the
program about the customer's ability to continue to contribute when the
customer changes their address within the utility's service
territory.
(H) A description of the
method the utility will use to provide clear, periodic, and cost-effective
notice of the opt-in provision to its customers at least twice per year.
Acceptable methods include, but are not limited to, bill inserts, statements on
the bill or envelope, and other utility communication pieces.
(I) An estimate of the start-up costs that
the utility expects to incur in connection with the program along with
supporting detailed justification for such costs. This estimate should include
the utility's initial costs of setting up the collection mechanism and
reformatting its billing systems to solicit the optional contribution but shall
not include the cost of any notification efforts by the utility. Utilities may
elect to recover all start-up costs before the remaining moneys generated by
the program are distributed to the Organization or over a period of time from
the funds generated by the program, subject to Commission review and
approval.
(J) An estimate of the
on-going costs that the utility expects to incur in connection with the program
along with supporting detailed justification for such costs. This estimate
shall not include the cost of any notification efforts by the
utility.
(K) A detailed
justification for the costs identified in subparagraphs (I) and (J). As stated
in § 40-8.7-104(3),
C.R.S., the costs incurred must be reasonable in connection with the
program.
(L) Utilities shall
recover the startup cost and on-going cost of administration associated with
the program from funds generated from the program. Insert and notification
costs shall be considered in the utility's cost of service.
(M) A description of the procedures the
utility will use to account for and process program donations separately from
customer payments for utility services.
(II) Each utility shall participate in the
energy assistance program consistent with its plan approved by the Commission
and shall provide the opportunity for its customers to make an optional energy
assistance contribution on the monthly remittance device on their utility
billing.
(III) The utility may
submit an application to the Commission no later than April 1 of each year for
approval of reimbursement costs the utility incurred for the program during the
previous calendar year. Such application shall include a proposed schedule for
the reimbursement of these costs to the utility. The applications shall include
detailed supporting justification for approval of these costs. Such detailed
justification includes, but is not limited to, copies of receipts and time
sheets. Such applications shall not seek reimbursement of costs related to
notification efforts. Participating utilities may include reimbursement costs
for such notification efforts in their periodic cost of service rate filings,
subject to Commission review and approval.
(IV) A utility may seek modification of its
initial plan or subsequent plans by filing an application with the Commission.
Such application shall meet the requirements of (d)(I).
(d) Fund administration.
(I) At a minimum, each utility shall transfer
the funds collected from its customers under the Energy assistance program to
the organization under the following schedule:
(A) for the funds collected during the period
of January 1 to March 31 of each year, the utility shall transfer the collected
funds to the organization before May 1 of such year;
(B) for the funds collected during the period
of April 1 to June 30 of each year, the utility shall transfer the collected
funds to the organization before August 1 of such year;
(C) for the funds collected during the period
of July 1 to September 30 of each year, the utility shall transfer the
collected funds to the organization before November 1 of such year;
(D) for the funds collected during the period
of October 1 to December 31 of each year, the utility shall transfer the
collected funds to the organization before February 1 of the next year;
and
(E) each utility shall maintain
a separate accounting for all energy assistance program funds received by
customers.
(II) Each
utility shall provide the organization with the following information.
(A) How the funds collected for the previous
calendar year were generated, including the number of customers participating
in the program. Such report shall include a summary of the number of program
participants and funds collected by month, and shall be provided by February 1
of each year.
(B) At each time
funds are remitted, a listing of all program participants including the donor's
name, billing address, and monthly donation amount. The participant information
provided to the organization shall be used exclusively for complying with the
requirements of §
40-8.7-101, C.R.S., et seq. and
state and federal laws.
(III) The Commission shall submit, as
necessary, a bill for payment to the organization for any administrative costs
incurred pursuant to the program.
(IV) The organization shall provide the
Office of Utility Consumer Advocate and the Commission with a copy of the
written report that is described in §
40-8.7-110, C.R.S. This report
shall not contain individual participant information.
(e) Prohibition of disconnection. Utilities
shall not disconnect a customer's electric service for non-payment of optional
contribution amounts.
Notes
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