OAR 860-021-0200: Establishing Credit for Residential Utility Service

(1) An applicant or customer may demonstrate satisfactory credit for new or continuing service by showing any of the following, provided that a deposit is not required under section (2) of this rule: (a) Received 12 months of continuous utility service of the same type applied for (energy or telecommunications) during the preceding 24 months and the utility can verify a prior service account in the customer or applicant’s name, either by the applicant’s account history with the utility or by contacting a former utility or through an authorized letter provided by the applicant or customer from the former utility on utility letterhead that includes the following: (A) Name(s) of the responsible person(s) on the account; (B) Date of service; (C) A statement that the customer was not disconnected for nonpayment during the final 12 months of service; and (D) A statement that the applicant or customer voluntarily terminated service and timely paid for all services rendered. (b) Meets Commission approved minimum credit requirements based on a third party credit report score or the energy or large telecommunications utility’s own credit scoring formula; or (c) Proof of ability to pay by providing either: (A) Proof of employment during the entire 12 months previous to the application of service for person(s) responsible for payment on the account and a work telephone number to enable the energy or large telecommunications utility to verify employment; or (B) A statement or other documentation from the income provider or an authorized representative, that the energy or large telecommunications utility can verify, indicating that the applicant or customer receives a regular source of income. (2) An applicant or customer who is not an income-qualified residential customer may be required to pay a deposit at the time of application for new or continued service when: (a) The applicant or customer is unable to establish credit as defined in section (1) of this rule; (b) The applicant or customer received the same type of utility service from it or any Oregon energy or telecommunications utility, as defined in ORS 757.005 or ORS 759.005, within the preceding 24 months and owed an account balance that was not paid in full when service was terminated. This subsection does not apply to a customer who registered a dispute with the Commission within 60 days after service was terminated and who paid all undisputed or adjudicated amounts; or (c) The applicant or customer was previously terminated for theft of service by any Oregon utility as defined in ORS 757.005 or ORS 759.005, was found to have tampered with the meter or other utility facilities, or was otherwise found to have diverted utility service. (3) In lieu of paying a deposit, an applicant or customer may: (a) Provide the energy or large telecommunications utility a written surety agreement from a responsible party to secure payment in an amount equal to two months' average usage, which may be transferred to the responsible party’s account as established in OAR 860-021-0334. For purposes of section (3) of this rule, a responsible party is a customer of the same utility that has maintained credit in good standing for the preceding 12 months without receiving a past due notice or incurring involuntary disconnection. The surety agreement obligation will automatically terminate should the responsible party no longer meet the conditions set forth herein. In the event a responsible party is subsequently found not to qualify, the applicant or customer will be required to either pay a deposit or obtain a written surety agreement from another responsible party. The surety obligation ceases when the customer establishes good credit; or (b) For energy utilities, elect to use demand limiter or “pay as you go” metering, if equipment is available. (4) For energy utilities, a deposit required under this rule shall not exceed one-sixth the amount of reasonable estimated billing for 12 months at rates then in effect. This estimate shall be based upon actual use at the premises during the prior 12 months, if known, or will be estimated based upon the type and size of the equipment at the premises. Each deposit shall be rounded to the nearest whole dollar. (5) For large telecommunication utilities, a deposit required under these rules shall be based upon two months' average or estimated bills for usage of the applicable telecommunications utility's tariff and price-listed services. Each deposit shall be rounded to the nearest whole dollar. For telecommunications service, applicants eligible for Oregon Telephone Assistance Program (OTAP) funding and who voluntarily elect to receive toll-blocked service, no deposit may be charged. The large telecommunications utility shall make toll blocking available at no charge to all applicants identified in OAR 860-033-0030. (6) A new or additional deposit, calculated as provided by sections (4) and (5) of this rule with the most recent information available, may be required from a customer as a condition of continued service when: (a) The energy or large telecommunications utility discovers that the customer gave false information to establish an account and/or credit status; (b) The energy or large telecommunications utility discovers that the customer has stolen utility service, has tampered with the meter or other utility facilities, or was otherwise found to have diverted utility service; (c) For energy utilities, a customer moves and the anticipated bill at the new residence will be at least 20 percent greater than the basis of the existing deposit; or (d) For large telecommunications utilities, if service records for the customer indicates unbilled intraLATA toll activity under the utilities’ tariff and price list is greater than the basis of the prior deposit. (7) Paying a deposit does not excuse a customer from complying with the energy or large telecommunications utility's tariffs or other regulations on file with the Commission, such as the obligation to promptly pay bills. (8) An energy or large telecommunications utility may file a tariff that contains less stringent deposit requirements than those specified in this rule.