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DEFERRED PAYMENT AGREEMENTS What is a Deferred Payment Agreement? A Deferred payment Agreement is a written agreement signed by both you and the utility to pay for back bills in monthly installments.
If you and the utility cannot agree on ``fair and equitable" terms, you have the right to seek a decision from the Public Service Commission which will make its own investigation. You can call them at 1-800-342-3377 or file a complaint at the PSC How will I be offered a DPA? Before a utility can terminate your service, it must make a reasonable effort to contact you by phone, mail or in person to discuss a DPA. The standard agreement that you will be offered is a down payment of 15% of the amount you owe, or one half of your average monthly bill, whichever is greater; and a monthly installment of the greater of up to the cost of half of one months average usage or one tenth of the balance. 16 NYCRR § 11.10 (c) (2) (ii)
The standard agreement must advise you: While your utility may offer you specific payment agreement terms, you do not have to accept what it proposes. You can write your own payment terms based upon your ability to make payments on what you owe as well as full payments on your current bills. Your utility must accept any terms you propose which are fair and equitable, considering your financial circumstances; however, it can refuse any terms where you would be paying less than $10 a month on what you owe. Are there times when a utility can refuse to enter into a repayment agreement with me? Yes, if you have previously signed a written DPA, after a full and fair negotiation, and have not kept up the payments, the utility does not have to agree to a new DPA unless you can show your financial situation has changed and would justify a new one. If you have not made payments and did not contact the utility to explain your change of circumstances when they sent you a reminder notice or a final termination notice, they do not have to enter into a new DPA with you. Can the utility require a down payment? No. The DPA must take your financial situation into account and be fair. If you cannot afford a down payment, they cannot force you to make one. If you receive the standard DPA offer which proposes a down payment, but you cannot afford to pay it, contact the utility company. If they continue to insist on an excessive monthly payment, the Public Service Commission must review and decide the dispute over the terms of a DPA. Call the PSC Complaint Line at 1-800-342-3377 file a complaint at the PSC. If service is about to be terminated or is already off, you may also contact the PSC Hotline at 1-800-342-3355. How much do I have to pay each month on my back bills? The DPA must be fair based on your financial situation. The amount paid on your back bills can be as low as $10 per month, but you also must pay your current bills. If you receive the standard DPA offer and can't afford the monthly amount they asked for, contact the utility company. If they continue to insist on a higher monthly payment amount than you can afford, the Public Service Commission must review and decide a dispute over the terms of a DPA. Call the PSC at 1-800-342-3377 or make a complaint on their website. What if I can't make a payment I owe under a Deferred Payment Agreement I agreed to? Contact the utility company and ask to change it. A utility must renegotiate and amend a payment agreement if you demonstrate that your financial circumstances have changed significantly due to conditions beyond your control. Such changes could include losing a job or other form of income, having new medical bills or other expenses. If, on the other hand, your circumstances have not changed but you entered into the initial agreement they offered or into an agreement you really could not afford, try to negotiate a fair and equitable agreement based on your circumstances. If the utility refuses to change your DPA, call the Public Service Commission at 1-800-342-3377 or make a complaint on their website. What happens if I don't make a payment under a Deferred Payment Agreement I agreed to? You must pay your DPA payments within 20 days of the due date. The utility will send you a reminder notice at least 8 calendar days prior to the final day on which payment should be made. If payment is not made a final termination notice will be sent. It will also tell you that, if you can demonstrate that you are unable to make the payment because your financial circumstances have changed significantly due to circumstances beyond your control, you should contact the utility to negotiate a new payment agreement. 16 NYCRR § 11.10 (e) (1) The utility will send you another notice 20 days after the payment is due demanding full payment but must again state that a new payment agreement maybe available and that assistance may be available from the local Department of Social Services. 16 NYCRR § 11.10 (e) (2) Be sure to contact the utility company and ask to change the DPA if your financial circumstance have changed or if you think you might not have been given a full and fair opportunity to negotiate the original DPA based on your financial situation. Are there circumstances under which I should not enter into a DPA? You may want to make use of any available HEAP or Public Assistance grants not requiring repayment before entering into a DPA. PULP Answers Questions About Deferred Payment Agreements. |
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