Escolar Documentos
Profissional Documentos
Cultura Documentos
Hevey
Senior Counsel
On March 12, 2018, the Office of the Public Advocate (“OPA”) filed a letter with
the Commission in the above-referenced proceeding requesting that the Commission
order CMP to take no action on disconnections after the “winter disconnect” period
expires on April 15, 2018 and also order a stay on CMP issuing any new disconnection
notices pending the outcome of the Commission’s summary investigation. Also on
March 12, 2018, the Commission issued a Procedural Order providing that interested
persons could file comments on the OPA’s Request on or before March 20, 2018.
Attached is CMP’s response to the OPA’s Request.
CMP’s comments are being filed one day late due to an oversight. CMP
apologizes for this oversight and respectfully requests that the Commission accept
CMP’s comments on a late-filed basis.
Sincerely,
Richard P. Hevey
Senior Counsel
I. INTRODUCTION
On March 1, 2018, the Commission issued a Notice of Investigation pursuant to which the
Commission initiated a summary investigation into metering, billing and customer communications
issues which have arisen over the past several months with respect to Central Maine Power
Company (“CMP” or the “Company”). The Commission’s Notice of Investigation did not set forth
a procedural schedule for this summary investigation or provide for any defined next steps, but
rather only generally stated that the Commission’s summary investigation would be conducted
pursuant to Section 13 of Chapter 110 of the Commission’s rules, which is applicable to non-
On March 12, 2018, the Office of the Public Advocate (“OPA”) filed a letter with the
Commission in this docket requesting that the Commission order CMP to take no action on
disconnections after the “winter disconnect” period expires on April 15, 2018 and also order a stay
on CMP issuing any new disconnection notices pending the outcome of the Commission’s summary
investigation. Also on March 12, 2018, the Commission issued a Procedural Order providing that
interested persons could file comments on the OPA’s Request on or before March 20, 2018. In
accordance with that Procedural Order, CMP hereby provides its response to the OPA’s Request as
-1-
While the OPA’s Request deals with disconnection notices, the Company would note that it
is always our preference to work with customers to proactively resolve payment issues that could
eventually lead to disconnection. The Company encourages customers to contact us in all of our
communications so that we may address a payment issue promptly. CMP works with customers to
establish payment arrangements and to educate customers on available assistance options. Not only
is it our responsibility to work with an individual customer to resolve past due balances, but also it
is our responsibility to all customers who pay for uncollected debt. It is within this background the
CMP does not support the granting of the OPA’s Request. As an initial matter, it should be
noted that this proceeding is currently a summary investigation, which the Commission has stated
will be conducted pursuant to Section 13 of Chapter 110 of the Commission’s rules. This section of
“Adjudicatory Proceeding” means any proceeding before the Commission in which the
legal rights, duties or privileges of a specific person or persons are required by
constitutional law or statute to be determined after an opportunity for hearing.
In its Request, the OPA is clearly asking that the Commission improperly restrict
the rights, duties and privileges of CMP under Chapter 815 with respect to the issuance of
disconnection notices. Section 10 of Chapter 815 sets forth the rights, duties and privileges
-2-
815 are satisfied, utilities have the right to issue disconnection notices for any of the
reasons set forth Section 10(D) of Chapter 815, including non-payment on an overdue
amount of more than $50. Within the context of an inquiry, the Commission cannot grant
the type of relief sought by the OPA, namely to restrict CMP’s existing rights, duties and
privileges.
The relief sought by the OPA is extraordinary. It is directly contrary to one of the
three main purposes of Chapter 815 – to assure the utility’s right to collect proper payment
for utility services. In the event such payment is not made, CMP has the right and arguably
the duty to pursue disconnection of those customers that do not pay their bills in a timely
manner. Absent the right to disconnect customers that do not pay their bills, CMP’s
uncollectible costs will undoubtedly increase for all customers. In its investigation of
CMP’s credit and collections activities in Docket No, 2010-00327, the Commission made
clear that utilities are expected and required to manage their credit and collections activities
in a reasonable and prudent manner. As stated by the Commission in that case, “It is
reasonable to expect a prudently managed utility to manage its credit and collections
function so that customer bills do not go unpaid for extended periods of time.” Maine
Public Utilities Commission, Investigation of Central Maine Power Company’s Credit and
Collection Policies and Standard Offer Uncollectible Balances, Docket No. 2010-00327,
Order p. 38 (Jan. 25, 2013). One key tool available to utilities to ensure that customer bills
do not go unpaid for extended periods of time is the issuance of disconnection notices. The
Commission should not unnecessarily take away CMP’s use of this valuable tool in
-3-
Although not explicitly stated therein, CMP assumes that the OPA’s Request is
intended to apply to only disconnection notices that are related to a customer’s failure to
pay a past due bill. However, as written, the OPA’s Request on its face applies to the
issuance of any disconnection notices or actual disconnections for any reasons. Therefore,
the OPA’s Request is overbroad in that seeks to prevent CMP from issuing or acting on
any disconnection notices, regardless of the reason. Section 10(D) of Chapter 815 allows
• unauthorized use;
• dangerous condition;
• directive from State or local official;
• customer request or abandonment;
• failure to pay;
• refusal of access;
• fraud or material misrepresentation;
• broken payment arrangement;
• failure to provide a deposit or guarantor;
• failure to apply for customer status;
• failure to comply with Commission decision;
• dishonored check; or
• failure to provide certification of a serious medical condition.
Many of these authorized reasons for disconnection are completely unrelated to any
concerns that may exist in connection with CMP’s billing or metering systems. For
the customer’s service poses a threat to the safety of any person or the integrity of the
electric delivery system. In addition to the other reasons stated herein, the OPA’s Request
should be denied because it is unnecessarily overbroad and would result in CMP being
-4-
Further, the OPA’s Request fails to recognize that Chapter 815 already adequately
protects the rights of customers who have a dispute regarding the amount of their bills. In
particular, Section 13(C) provides that “[a] utility may not threaten disconnection or
disconnect the service of a customer if the customer has informed the utility that the
customer disputes liability for the bill, a utility's deposit request, or the terms of a payment
Section 13(F) of Section 815 provides that if a utility cannot resolve a dispute with a
customer, the utility is required to notify the customer of the right to file a complaint with
the CASD. Section 13(G) of Chapter 815 provides that a utility may not threaten
disconnection or actually disconnect service to a customer that has filed a complaint with
the CASD. In short, the provisions of Section 13 of Chapter 815 fully protect the rights of
customers to avoid disconnection during the period when any unresolved disputes exist
regarding their utility bills. Consequently, the relief requested in the OPA’s Request is
wholly unnecessary.
Finally, CMP notes that the OPA’s Request is unsupported by any facts. The entire point of
the Commission’s summary investigation in this proceeding is to gather the information necessary
to determine whether there exists any systemic metering, billing or customer communication
problems affecting CMP’s ability to provide service to its customers. The OPA’s Request seeks to
completely circumvent the Commission’s summary investigation process and jump directly to the
unsupported conclusion that such systemic problems do exist and should be immediately remedied
through a prohibition on the issuance of new disconnection notices. The Commission should deny
the OPA’s Request and instead proceed with its summary investigation.
-5-
III. CONCLUSION
The Company certainly recognizes the struggles that some customers have in paying their
electric bills and it is always our preference to resolve payment issues before taking steps to
disconnect service. The Company offers customers payment options and we are a valuable resource
in helping them identify assistance options for which they might qualify. The Company always
encourages customers to contact us so that we can work with them. However, the need to work
with individual customers must be balanced against CMP’s obligations to all customers to manage
its credit and collections activities in a manner that keeps rates low for all customers, including the
CMP appreciates the opportunity to provide these comments in response to the OPA’s
Request. For the reasons stated above, the Commission should deny the OPA’s Request.
Please contact me if the Commission has any questions regarding these comments or needs
Richard P. Hevey
Attorney for CMP
-6-