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3.1.E. ERMUSR 02-15-2011Elk River Municipal Utilities Cold Weather Rule Policy 1. Policy. It is the policy of Elk River Municipal Utilities (ERMU) to comply with the State of Minnesota "Cold Weather Rule", as set forth in Minnesota Statutes, Section 21613.097, as amended. 2. Annlicability. The ERMU Cold Weather Rule Policy (the "Policy") shall apply to all ERMU residential electric customers who meet the criteria set forth in Minnesota Statutes Section 21613.097. The Policy shall apply only to those ERMU residential water customers who meet the criteria of Section 21613.097 and for whom water service affects the primary heat source for the residential unit. 3. Annual Notice to Customers. ERMU will notify all ERMU customers, between August 15 and October 15 of each year, of the provisions of the Cold Weather Rule and the ERMU Cold Weather Rule Policy. 4. Restrictions on Disconnection. During the period between October 15 and April 15 of each year, ERMU residential customers to whom the Cold Weather Rule policy is applicable, as provided above, will not be disconnected and, if disconnected on October 15, will be reconnected, provided all of the following conditions are met: a) The customer has submitted a written statement of inability to pay the full amounts due for utility services; b) Household income at the customer address is at or below 50% of the state median household income. i) If income verification is necessary, ERMU may obtain income verification from the local energy assistance provider or require that the customer verify income on forms provided by ERMU. ii) Income verification will not be required if the customer receives any form of public assistance, including energy assistance, that uses as an income eligibility threshold set at or below 50% of the state median household income. c) The customer enters into a payment agreement that considers the financial resources of the household. i) Payments due under a payment agreement shall be no less than ten percent of the household monthly income. ii) ERMU may require payments in excess of ten percent of the household monthly income if such a payment amount is reasonable considering the financial resources of the household. iii) ERMU may agree, in its discretion, to payments of less than ten percent of the household monthly income only if the customer has submitted such information as ERMU shall require regarding the financial resources of the household and ERMU makes a finding that a lesser payment is justified given the financial resources of the household. d) The customer makes reasonably timely payments under the payment agreement. i) Failure to make timely payments under a payment agreement shall authorize ERMU to immediately initiate a notice to the customer of disconnection. ii) Receipt by ERMU of two or more payments five days or more beyond the due date shall be failure by the customer to make reasonably timely payments. e) The customer has received referrals to energy assistance, weatherization, conservation, or other programs likely to reduce the customer's energy bills. 5. Notice of Disconnection. a) Before disconnecting service to a residential customer during the period between October 15 and April 15, ERMU will provide the customer with a written notice of disconnection. b) The notice of disconnection shall be mailed to the customer and, if different, the owner of the service address, at least 20 days prior to the disconnection date, and posted on the property at least 15 days prior to the disconnection date. c) The notice of disconnection shall state the date of the proposed disconnection and shall include: i) a statement explaining the customer's rights and responsibilities; ii) a list of local energy assistance providers; iii) a statement that forms on which to declare inability to pay are available at ERMU; and iv) a statement explaining that the customer has the opportunity to enter into a payment agreement with ERMU if the criteria set forth in this Policy and Minnesota Statutes, Section 21613.097 are met. 6. Anneal. a) A customer may appeal a proposed disconnection by submitting a written notice of appeal prior to the proposed disconnection date. b) If a written notice of appeal is received by ERMU prior to the disconnection of service, ERMU will not disconnect service until the appeal is resolved. c) Upon receipt of a notice of appeal, ERMU shall schedule a hearing before the ERMU Cold Weather Rule Appeals Board ("Appeals Board"). i) The hearing shall be held during normal business hours. ii) The hearing shall be held no sooner than two weeks after receipt of the written notice of appeal from the customer. iii) The customer shall be notified of the date, time and place of the hearing at least ten calendar days before the hearing. d) Prior to the hearing, the customer shall submit a statement which shall contain the following information: i) Name, address and phone number of customer; ii) Utility account number; iii) Date of bill; iv) Date of proposed disconnection; v) Amount of bill; vi) If the amount of bill is in dispute, reasons for the customer's belief that the bill is in error and the customer's proposed adjustment; and vii) If the customer is unable to pay part or all of the bill, the customer's reason for inability to pay, verification of income and proposed payment arrangements. e) At the hearing before the Appeals Board the customer may present any testimony and evidence relevant to the appeal. Members of the Appeals Board may question the customer or other persons about any matter relevant to the appeal. f) The Appeals Board shall either decide the appeal prior to the conclusion of the hearing or within five days thereafter. i) If a decision is not made at the hearing, the decision shall be in writing and mailed or delivered to the customer. ii) If the decision is to uphold the appeal subject to conditions, the conditions shall be reduced to writing and delivered to the customer along with the deadline for compliance with the conditions. The order shall set a date for disconnection of utility services if the conditions are not complied with. iii) If the decision is to deny the appeal, the Appeals Board shall set a date for disconnection of services. g) If an appeal is denied, or upheld subject to conditions, neither the denial nor the conditions are subject to further appeal, and service shall be disconnected as provided in the decision of the Appeals Board unless payment is made or the conditions approved by the Appeals Board are complied with. No additional appeals will be accepted or granted until the decision of the Appeals Board has been complied with. h) The Appeals Board shall consist of the following three members: i) The ERMU Director of Operations. ii) The ERMU Finance Director iii) The ERMU Collections Manager Disconnections. a) If a customer does not respond to a disconnection notice, the customer will not be disconnected until ERMU has investigated whether the residential unit is actually occupied. If the unit is found to be occupied, ERMU will immediately inform the occupant of the provisions of this Cold Weather Rule policy. If the unit is unoccupied, ERMU will give seven days written notice of the proposed disconnection to the local energy assistance provider before making a disconnection. b) Between October 15 and April 15, disconnections will not occur: i) On a Friday; ii) On a weekend, holiday or the day before a holiday; iii) When ERMU offices are closed; or iv) After the close of business. Reconnection. a) If utility service is disconnected, service will not be reconnected until: i) All delinquent amounts are brought current, unless a payment agreement is entered into as provided above; i) A deposit is provided as required by ERMU's deposit policy; and iii) A reconnection fee is paid as provided by the ERMU schedule of fees. b) If the above conditions are met, utility services will be reconnected as soon as practicable during normal business hours. GP 2928087 vl