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ARKANSAS PUBLIC SERVICE COMMISSION

IN THE MATTER OF THE BILLING ) DOCKET NO. 23-015-U

PRACTICES OF SUMMIT UTILITIES ) ORDER NO. 13
ARKANSAS, INC. )

ORDER

By Order No. 10, the Arkansas Public Service Commission (Commission) directed

Summit Utilities Arkansas, Inc. (SUA) to maintain its voluntary suspension of

disconnections and late fees. 1 In Order No. 11, the Commission found that it is reasonable

and in the public interest to discontinue the suspension of late fees and disconnection by

SUA, effective no sooner than 30 days from the date of a subsequent Order addressing

the issues raised therein.

Based on the evidence in the Docket, the Commission is directing SUA to resume

late fees and disconnections no sooner than September 15, 2023, and to issue Shut-off

notices, under Rule 6.04 of the Commission’s General Service Rules (GSRs), no sooner

than September 10, 2023, and directs SUA to offer a minimum of 18 months to customers

for the Delayed Payment Agreement (DPA).

In order to assist in the determination of the appropriate term of the DPA for the

reinstatement of disconnections and late fees, the Commission issued a number of

questions to SUA and asked that each Party offer written testimony as to what the length

of time the DPA should be in effect and why.

SUA’s Response to Order No. 11 (Doc. #72) stated that a total of 47,014 customer

accounts, of which 43,302 are residential, with a past-due balance would be disconnected

1 SUA voluntarily suspended late fees and disconnection in November 2022.

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or in the process of disconnection if not for the suspension of disconnections. SUA

indicates that the average past-due amount for all customers who have past-due balances

(and would be disconnected or in the process of disconnection but for the suspension of

disconnections) is $647. For residential customers the average past-due balance is $584,

with 26,435 customers below the average and 16,867 customers above the average. For

commercial customers, the average past-due balance is $1,386, with 3,080 customers

below the average and 632 customers above the average. SUA also asserted that the

lowest past-due balance is $100, and the highest past due balance is $10,120 for

residential customers and $216,804 for commercial customers.

The witness for the Office of the Attorney General Tim Griffin (AG), Charles

Harder, agrees with SUA’s proposal to extend an 18-month period to all customers unable

to pay their balance at one time, but he continues to recommend that, for customers who

would qualify for financial assistance under Ark. Code Ann. § 23-2-304(a)(11), the

repayment period be set at a period of up to thirty-six (36) months. 2 However, Mr. Harder

offered no implementation plan or verification process that would be feasible for SUA to

utilize. Mr. Harder nonetheless suggests that if the Commission approves a repayment

period of less than thirty-six months for customers who would qualify for financial

assistance under Ark. Code Ann. § 23-2-304(a)(11), the Commission should remove

barriers to reconnection for ratepayers who are disconnected for non-payment for the

upcoming heating season. 3 Mr. Harder recommends that, for residential ratepayers who

are disconnected for nonpayment during the upcoming winter heating season, SUA shall

2 Harder Rebuttal at 3 (Doc. #73).

3 Id. at 3-4 (citing to Docket No. 01-248-U).
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not require a new security deposit and/or a full payment of the ratepayer’s unpaid balance

before reconnection. He testifies that as to the unpaid balance, SUA should be required

to enter into a one-time, new 18-month DPA with the ratepayer. Mr. Harder stated that

these requirements would end on April 1, 2024. 4

SUA is proposing to provide up to an 18-month DPA for all customers. 5 This covers

the ten-month period that SUA voluntarily suspended collections and an additional eight

months to reduce the amount of the monthly DPA installments. 6 Mr. Kirkwood testified

that implementing a 36-month DPA program for certain customers would create an

undue administrative burden on the Company by requiring its customer service

representatives to determine which customers qualify for low-income assistance pursuant

to the statute. 7 He additionally explained that SUA has neither the resources nor the

expertise to develop and/or facilitate the administrative process that would be required

to determine who qualifies for financial assistance. SUA customer service representatives

would need additional training to understand what documentation would be needed from

customers and who qualifies for financial assistance pursuant to Ark. Code Ann. § 23-2-

304(a)(11). SUA’s Customer Information System would also need to be configured to

allow for this verification and to flag customers who meet the requirements for financial

assistance. Additionally, he testified that this would require SUA to receive and maintain

copies of confidential customer information, which is not SUA’s standard practice. He

4 Id. at 4.
5 Eighteen months is longer than SUA’s initially recommended DPA period of twelve months, which is
longer than the four months required by the Commission’s General Service Rules. Kirkwood Order No. 11
Responsive at 2 (Doc. #74).
6 Kirkwood Order No. 11 Responsive at 2.
7 Id. at 3.
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stated this will be very time-consuming and intrusive, potentially requiring multiple

customer touchpoints. 8 SUA stated that it plans to give customers 30-days’ notice before

resuming disconnection activities and late fees in September. 9 This would give customers

the opportunity to pay their past due balances or enter into a DPA before disconnection

activities and late fees are resumed. 10

The Commission finds that based on this information, implementing a new

program for customers who would qualify for financial assistance under Ark. Code Ann.

§ 23-2-304(a)(11) could not be readily accomplished. The AG did not propose a specific

program 11 and, as noted by SUA, there are administrative and operational burdens which

would unreasonably delay resolution of the issues facing SUA and its customers. 12

However, the adoption of the directives contained herein, such as customer education,

required communications, and extended DPAs, will particularly assist low-income

customers who may currently have arrearages with SUA.

Therefore, pursuant to Order No. 11, SUA may resume late fees and disconnections

no sooner than September 15, 2023 13. Shut off notices under GSR 6.04 may be sent no

sooner than September 10, 2023. 14 To prevent an abrupt resumption of disconnections,

SUA should immediately begin to communicate with and direct customers to provide a

8
Id.
9 Assuming a July reinstitution date.
10 Kirkwood Order 11 Responsive at 4.
11 No programs have been proposed or adopted under Ark. Code Ann. § 23-2-304(a)(11). The Commission

also notes that the program in Docket No. 01-248-U, cited by AG, was overturned on appeal.
12 For example, SUA noted that it has no current capability to determine which customers qualify for low-

income assistance pursuant to the statute and that it does not normally receive and maintain copies of
confidential customer information. Kirkwood Order No. 11 Responsive at 3.
13 In accordance with GSR 6.04, no disconnections shall occur prior to 5 days after the shut-off notice has

been sent.
14 All provisions of the GSRs on disconnections shall apply unless modified herein.
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description of the phase-in for disconnections, give the customer time to contact a

community action agency or other organization for available assistance if needed, and

give the customer time to sign up for a DPA.

Accordingly, the Commission issues the following directives:

1. General Communication with Customers

In addition to the requirements of notice provided in the GSRs, SUA shall

immediately post information regarding the resumption of disconnects and late fees,

including the targeted date that it will resume disconnects and late fees and available

payment options, on its website and social media channels and through bill messaging, if

available. The information shall include a telephone number and/or email address where

customers can receive further information. SUA is encouraged to utilize other forms of

communication with their customers, including letters, bill inserts, and direct emails and

texts, along with mass communication and a press release.

2. Communication with Individual Customers with Arrearages

In addition to the normal shut-off notice required by the GSRs prior to any

disconnection for non-payment, SUA shall provide in writing the following information

to each customer with a past-due balance for whom the utility intends to disconnect

service as a result of the end of the suspension on disconnects and late fees:

a. That disconnections and late fees will be resumed no earlier than September

15, 2023;

b. The arrearage balance;

c. The options available for payment arrangements;

d. The sources available for energy bill assistance;

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e. The options available for postponement of disconnection for medical need

under Rule 6.17 of the Commission’s GSRs for the elderly and individuals with

disabilities under Rule 6.18 of the GSRs; and

f. A telephone number and website, if available, where the customer can make

payment arrangements.

The notification shall be marked so as to catch the customer’s attention, for example

“Important Information from SUA” in red. The notification must be delivered to affected

customers as soon as possible, but no later than September 1, 2023. A shut-off notice

under Rule 6.04 of the Commission’s GSRs may be sent no earlier than September 10,

2023. The imposition of late fees and actual disconnections may not occur earlier than

September 15, 2023. In addition to the required written notification, SUA should use the

following methods of communication to contact customers: email, text, contact by

telephone, or premises visits where it has the ability to do so.

3. Disconnections

In addition to the disconnection requirements found in Section 6 of the GSRs, SUA

shall contact the customer, either by telephone, in person, email with a read receipt, or

with a door hanger, 48 hours in advance of disconnection.

4. Payment Plans

SUA shall offer DPAs for a minimum of 18-months to all customers who have

arrearages. SUA shall not require a down payment to participate in a DPA. SUA must

make every effort to enroll customers with arrearages as of the date of this Order in DPAs.

5. Energy Assistance Programs

Any assistance received by an energy assistance program shall be applied to the

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customer’s oldest charges. SUA shall continue to offer customers any available

information regarding funds that may be available through assistance agencies or the

Arkansas Low-Income Home Energy Assistance Program.

6. Reporting Requirements

Reporting requirements for SUA shall be determined by a subsequent order.

BY ORDER OF THE COMMISSION.

This 27th day of July, 2023.

Doyle Webb, Chairman

Justin Tate, Commissioner

Katie Anderson, Commissioner