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Billing
How should the utility apply a partial payment of a combined utility bill?
Dividing a partial payment between different utility services:
Partial payments should be applied on a pro-rata basis. This means that a utility should apply any payment it receives proportionately to the different utility services.
For example, if a customer pays $100 for a bill that is made up of 60 percent electric charges, 20 percent water charges, and 20 percent sewer charges, a utility must apply the payment as follows: $60 to electric charges, $20 to water charges, and $20 to sewer charges.
Dividing a partial payment between current service and arrears:
A partial payment of a utility bill should be applied in the following order of priority:
- Current utility service
- Current deferred payment agreement
- Utility service arrears
- Miscellaneous utility charges
- Non-utility charges such as municipal fees, licenses, contracted sewer billing services or penalties levied under municipal ordinances.
Payments can be applied in a different order at the customers;s request. Payments can also be applied in a different order at the utility's discretion. The new method of applying a payment that either a customer or utility selects must not result in disconnection or a late payment charge that would not have been incurred otherwise.
Other considerations:
If the utility applies a customer's payments according to these rules and the customer defaults on a deferred payment agreement, the utility can provide the proper disconnection notice and disconnect the customer's water service.
A utility can disconnect water service year round, unless the water is used as a source of heat. Water used as a source of heat cannot be disconnected for nonpayment from November 1 through April 15.
Utilities can't discriminate. If a utility decides to pursue disconnection, then it should apply its disconnection policy to all customers.
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How can the utility adjust its billing period, either for one period or an ongoing basis?
A utility must get approval from the PSC if it wants to change its billing period from quarterly to monthly or monthly to quarterly. The utility should contact the PSC to request this change.
Utilities can advance or postpone a meter reading date for up to 10 days. If the meter reading date is advanced or postponed by more than 10 days, the utility must prorate the bill.
For example, a utility reads meters on a quarterly basis and wants to postpone its meter reading date by 28 days to adjust its billing cycle. The easiest way to do that is to prorate the meter charges and volume block sizes from 91 days in a quarter to 119 days (91 days + 28 days). This results in a 119/91 ratio which is then multiplied by the meter charges and volume block rates. These new rates would be applied one-time to address the longer billing period. Then in the following normal 91 day quarter, the utility would revert back to its filed rates.
If the utility uses this method, the utility should notify its customers of the change and the one-time rate impact.
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How should the utility bill for leaks when the customer was not aware of the leak?
Utilities are able to bill water at a reduced rate if the customer was unaware of the leak. The utility must follow its written policy, and cannot bill the wasted water at a rate that is less than the actual cost. (See Wis. Admin. Code § 185.35(6).)
Utilities that want to offer customers a leak credit should first have a written leak credit policy. The policy should include how the utility will calculate the leak credit. There are two ways to calculate the credit:
- Bill the wasted water using the lowest volumetric rate in the utility’s rate schedule (Schedule Mg-1).
- Determine a reduced rate for the wasted water at or above the actual cost of the water.
This policy should be applied to customers equally. You can contact PSC staff for help creating this policy.
The part of the bill related to sewer charges is not regulated by the PSC. Thus, the utility has discretion to adjust sewer bills for leaks and does not need PSC approval to do so.
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Disconnections
What should you do when you suspect a customer of stealing water?
By law, utilities must bill for all service within two years of providing such service. Utilities may bill beyond this two-year limitation if the customer obtained service by fraud or deception. This includes, but is not limited to, theft or tampering with any device needed to measure service.
Each water utility’s rate schedule has a section called “Surreptitious Use of Water.” This section describes the steps a utility can take if it has reasonable evidence that a person is interfering with metering equipment to get water. When this happens, the utility can immediately estimate and bill for the unmetered service. The utility can issue a 24-hour disconnection notice if this bill is not paid within 20 days.
After disconnecting service, the utility can impose the following conditions before reconnecting service:
- The customer pays a deposit that is enough to guarantee bill payment.
- The customer pays the utility for all damages to utility equipment due to the tampering.
- The customer agrees to follow reasonable requirements to protect the utility from future losses.
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Can the utility disconnect a customer for refusing to allow utility personnel access to the meter at a reasonable hour?
The utility can disconnect a customer for refusing to allow authorized utility personnel access to the meter at a reasonable hour.
The Wisconsin Statutes and the Wisconsin Administrative Code give utilities authority to gain access to a private property to check on or test the meter and related equipment at a reasonable hour. (See Wis. Stat. § 196.171 and Wis. Admin. Code § 185.37.)
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What charges apply to a disconnected customer? What if the meter is still in place?
Whether a utility charges customers for service does not depend on the presence of a meter. What matters is if the customer is receiving water service and if the customer has requested disconnection of service. Charges for water service would apply as long as the customer is receiving the service.
If a customer asks for disconnection, the utility should ask if it will be temporary or permanent.
A disconnection is
temporary if the following is true:
- The customer reconnects service within 12 months.
- No other customer receives service during this 12-month period.
An example of temporary disconnection is when a customer moves south for the winter but plans to return in the spring. Customers who request temporary disconnection are
seasonal customers. (See Schedule Sg-1 (formerly Mgt-1) of your rate file). Seasonal customers are responsible for the service charge (Schedule Mg-1) during the disconnection, even if the meter is removed. The utility and customer should discuss whether the meter should be removed during a temporary disconnection. Customers are responsible for repairing damage from a water meter freezing.
The utility can bill seasonal customers one of two ways:
- Backbill the customer upon reconnection.
- Bill the customer each billing cycle.
The utility’s rate file (Schedule Sg-1) may specify which billing method should be used.
Additionally, the reconnection charge (Schedule R-1) applies upon reconnection of a seasonal customer.
A disconnection is
permanent when service is disconnected for more than 12 months. An example is a customer who closes, abandons, or moves out of a dwelling with no intention of returning.
If the customer requests permanent disconnection, this person is no longer a customer of the water utility and no longer subject to any charges for water service. Utilities that have standby charges (Schedule SWS-1) and/or direct charges for public fire protection (Schedule F-1) that apply to non-customers may still bill these charges.
Billing stops when a customer is involuntarily disconnected. An example of this is when a customer is disconnected for nonpayment. The utility cannot back bill for service charges upon reconnection. The reconnection charge (Schedule R-1) applies upon reconnection.
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What constitutes a medical emergency that would prohibit disconnection?
The PSC has specified that a COVID-19 infection within the household qualifies a customer for a medical extension. The PSC does not specify what other emergencies would qualify. It is up to the utility to decide what qualifies based on the documentation submitted by the customer.
The utility can require documentation of the medical or protective services emergency before granting an extension. Many utilities use a form to get the following information:
- The customer’s name, address, contact number, etc.
- The name, address and contact information for the person documenting the emergency. This can be a licensed Wisconsin physician, or a public health, social service or law enforcement official.
- A description of the emergency.
- The period of time that disconnection would aggravate the circumstances.
The utility can consider whether the customer’s situation is a true emergency or if the disconnection will only cause discomfort and inconvenience. The utility can contact the customer and the person documenting the emergency if more information is needed. The customer or utility can ask Commission staff for an informal review of the matter if there is a disagreement over the alleged emergency. The utility and the customer should work together during the 21-day period to make reasonable payment arrangements.
The utility must:
- Discuss available payment options with the customer.
- Make appropriate referrals to financial assistance.
The customer must:
- Submit documentation of the medical or protective services emergency.
- Work with the utility to make an acceptable payment arrangement.
The utility can delay disconnection beyond 21 days if the customer submits the necessary documentation and takes steps to make payment arrangements.
The utility may begin the disconnection process after 21 days if the customer has not made payment arrangements.
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Can the water utility disconnect the water service if there is one lateral providing service to two service meters, and one of the customers is subject to disconnection?
A water utility cannot disconnect service to one customer if it will impact another customer.
A customer’s lateral must be directly connected to the utility’s water main. There cannot be any other customer connection after the shut-off valve. This rule does not apply to multi-occupancy premises, like apartments, condominiums or shopping centers.
Multi-occupancy premises:
Multi-occupancy premises can have one lateral. If there is more than one meter, there must be a shut-off valve for each meter. Some utilities require multi-occupancy premises to have a meter room where the shut-off valves can be easily accessed.
Some utilities require duplexes to be served by two laterals. Some utilities allow duplexes to be served by one lateral that branches off into two separate shut-off valves. Other utilities allow duplexes to be served by one lateral with a shut-off valve near the meter. This allows the utility to lock and seal the meter.
Owners of multi-occupancy dwellings who want each unit to be individually metered must provide the necessary plumbing and meter settings. The plumbing and meter settings must allow the utility to disconnect service to one customer without affecting service to another.
The standards for multiple properties served through a single service line and shut-off valve are set forth in Wis. Admin. Code § PSC 185.52(2)(b) and in Schedule X-1 of the utility’s rate file.
The utility rule noted above is authorized by PSC order which has the effect of law.
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Can the utility disconnect a customer for nonpayment of non-utility arrears?
The utility cannot disconnect a customer's water service for nonpayment of non-utility arrears. The utility also cannot apply a late fee to the water bill due to nonpayment of non-utility charges.
The PSC allows municipalities to collect non-utility sewer charges, storm water fees, solid waste collection charges and landfill remediation costs on the water bill. The non-utility charges must be clearly identified on the bill. In addition, the non-utility charges on the bill cannot affect how the utility handles customer accounts.
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What are the utility’s responsibilities when disconnecting a customer that is a vulnerable resident such as an infant, the aged or others with health related infirmities?
The utility cannot disconnect service for at least 21 days if it would impact vulnerable residents. The utility can ask for written documentation of a medical or protective services emergency in the household. The utility is not required to provide service or reconnect service without this documentation.
The utility can require documentation of the medical or protective services emergency before granting a 21-day extension. Many utilities use a form to get the following information:
- The customer’s name, address, contact number, etc
- The name, address and contact information for the person documenting the emergency. This can be a licensed Wisconsin physician, or a public health, social service or law enforcement official.
- A description of the emergency.
- The period of time that disconnection would aggravate the circumstances.
The utility can consider whether the customer’s situation is a true emergency or if the disconnection will only cause discomfort and inconvenience. The utility can contact the customer and the person documenting the emergency if more information is needed. The customer or utility can ask Commission staff for an informal review of the matter if there is a disagreement over the alleged emergency.
The utility and the customer should work together during the 21-day period to make reasonable payment arrangements.
The utility’s responsibility:
- Discuss available payment options with the customer.
- Make appropriate referrals to financial assistance.
The customer’s responsibility:
- Submit documentation of the medical or protective services emergency.
- Work with the utility to make an acceptable payment arrangement.
The utility can delay disconnection beyond 21 days if the customer submits the necessary documentation and takes steps to make payment arrangements.
The utility may begin the disconnection process after 21 days if the customer has not made payment arrangements.(See Wis. Admin. Code §§ 185.37(8m) and 185.37(10).)
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When should the utility apply a charge for reconnection?
The reconnection charge is applied when a customer requests reconnection. The reconnection charge applies after both involuntary and voluntary disconnections. The reconnection fee should not be applied if the customer’s service was disconnected and another customer received service at the premises during this time.
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