ALBANY - New York utility regulators have ordered National Grid to be more lenient with customers who have fallen behind on payments and want to restart their electric and gas service.
The state Public Service Commission, at its meeting in Manhattan Wednesday, said the company must stop automatically requiring customers to pay what they owe or $1,000 - whichever is less - if they are in arrears and have defaulted on a deferred payment agreement.
Instead, National Grid must review each case individually and consider each customer's financial circumstances, the commission ruled.
The company's blanket policy for dealing with unpaid bills came to light after the Public Utility Law Project, a consumer advocacy group, asked the commission to investigate the practice.
Gerald Norlander, the consumer group's executive director, said it formally petitioned the state commission after more than a dozen former National Grid customers couldn't get their power restored because the company refused to negotiate a payment plan until they paid balances owed or made a down payment of $1,000.
“Most of them tried to get the help of the (Public Service Commission) but they got no help,” Norlander said.
The group argued that demanding such payments as a condition of turning on the power is against state regulations.
The commission agreed, ruling that National Grid's “inflexible practice” regarding customers who had previously defaulted is inconsistent with rules requiring utilities to “provide service that is in all respects just and reasonable” and to consider each application for service individually.
However, commissioners stopped short of requiring National Grid to enter deferred payment agreements with all customers who owe money, as Norlander's group requested.
Alberto Bianchetti, a National Grid spokesman, wouldn't say how many customers are in arrears or how much they owe.
He said the company is waiting for the commission's final written order and will work with its staff to develop a process that allows National Grid to meet the needs of individual customers while protecting the interests of those who pay their bills.
Instead, National Grid must review each case individually and consider each customer's financial circumstances, the commission ruled.
The company's blanket policy for dealing with unpaid bills came to light after the Public Utility Law Project, a consumer advocacy group, asked the commission to investigate the practice.
Gerald Norlander, the consumer group's executive director, said it formally petitioned the state commission after more than a dozen former National Grid customers couldn't get their power restored because the company refused to negotiate a payment plan until they paid balances owed or made a down payment of $1,000.
“Most of them tried to get the help of the (Public Service Commission) but they got no help,” Norlander said.
The group argued that demanding such payments as a condition of turning on the power is against state regulations.
The commission agreed, ruling that National Grid's “inflexible practice” regarding customers who had previously defaulted is inconsistent with rules requiring utilities to “provide service that is in all respects just and reasonable” and to consider each application for service individually.
However, commissioners stopped short of requiring National Grid to enter deferred payment agreements with all customers who owe money, as Norlander's group requested.
Alberto Bianchetti, a National Grid spokesman, wouldn't say how many customers are in arrears or how much they owe.
He said the company is waiting for the commission's final written order and will work with its staff to develop a process that allows National Grid to meet the needs of individual customers while protecting the interests of those who pay their bills.
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