Q. How does a utility become PUC regulated? How can I get my water utility under PUC regulation?

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Maximillian Stevens
5 years ago
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1 FREQUENTLY ASKED QUESTIONS BY CUSTOMERS OF WATER UTILITIES (PUC rules and regulations apply only to regulated water utilities subject to PUC jurisdiction.) PUC REGULATION Q. How does a utility become PUC regulated? How can I get my water utility under PUC regulation? A. The PUC has regulatory authority over private or investor-owned utilities and certain associations providing water service. The PUC regulates these water providers to ensure they provide safe and adequate service. Once a water provider is defined as a public utility, it is regulated for service. The PUC also regulates the rates and fees charged by certain public water utilities (rate and service regulated water utility). A water utility becomes a public utility subject to service regulation if it is: 1. Charging an average annual monthly residential rate of $24 or more, and 2. Serving under 500 customers, or 3. Found to be providing usage, discriminatory, or inadequate service. A water utility becomes a rate and service regulated utility if: 1. The utility serves 500 or more customers; or 2. The utility provides both water and wastewater services and the wastewater service is provided within the boundaries of a city. In these circumstances, both the water and wastewater services are regulated for service and rates; or 3. The water utility requests PUC regulation; or 4. The water utility charges or proposed to charge a rate or fee that exceeds the Commission s established regulatory thresholds AND 20 percent of the customers petition for rate regulation. The thresholds are (OAR ): a. $42 annual average monthly residential or small commercial (line size one inch or less) flat or unmetered rate. b. $45 annual average monthly residential or small commercial (meter size one inch or less) metered rate. c. $119 annual average monthly large commercial (line size greater than one inch) flat or unmetered rate. d. $128 annual average monthly large commercial (meter size greater than one inch) metered rate. e. Hook-up fees, system impact fees, facilities charges, mainline extension charges, or other similar charges must be reasonable and cost based. Residential service means water service provided for domestic or irrigation purposes in a residential area and is not considered a commercial service. (OAR (7)) Commercial service means water service provided by the water utility that the customer uses in the promotion of a business or business product that is a source of revenue or income to the customer or others using the premises. (OAR (2)) Page 1 of 6

2 A rate regulated water utility is always regulated for service and rates. A public water utility that is regulated for service is not always rate regulated. Q. Where can I find a listing of PUC regulated water utilities? A. The PUC has a list of all regulated water utilities on its website under Water. PUC JURISDICTION Q. My water utility is not privately owned (for example: city, district, or cooperative); who do I contact with grievances? A. The PUC does not have authority over municipalities, districts, or cooperatives. Each entity should have a customer service phone number or some established process for receiving complaints. If that does not work you may wish to try city or county system supervisors or the board of directors for each entity. WATER SERVICE DISCONNECTION Q. If my water utility is regulated by the PUC and the utility is going to disconnect my water service, what kind of notice is required prior to disconnection? A. The utility is required to provide two advance written disconnect notices; 15-calendar days before and 7-calendar days prior to disconnecting water service. Within 48 hours prior to disconnecting, the utility must make a good faith effort to contact you or another adult at the residence to inform you of disconnect plans. You may avoid disconnect by paying the bill in full or making a reasonable partial payment and entering into a time payment arrangement. Q. Can the water utility disconnect my residential service for nonpayment of irrigation service? A. There are two answers: a) No. If your irrigation service is delivered separate from your residential service, either through a different water system or separate service pipe, the utility cannot disconnect your residential service for nonpayment of a past due irrigation bill. b) Yes. If your irrigation service is delivered by the same system and same pipes that deliver residential service, your residential service may be disconnected due to nonpayment of a past due irrigation bill because the eater to both service is comingled and cannot be separate. Q. Can my service be disconnected for nonpayment on a Friday, weekend, or holiday? A. No. Except for safety reasons, utility companies may not disconnect service on a Friday, weekend, or the day before or on a state holiday. Page 2 of 6

3 Q. There are four families served by our well. We all evenly divide the cost of running the pump. One of the families does not pay its share. Can we disconnect water service to that family? A. The answer depends on the type of ownership of the well: a) If all four families share ownership of the well and equipment, then everyone has a say in the operation and policies of the water system. Therefore, no monopoly exists and the PUC does not have jurisdiction. b) If anyone served by the system is not a shared owner, the customer is not represented in the utility s decision making process. In this case, the PUC would have jurisdiction. The owner(s) would have a right to disconnect the non-owner for nonpayment. PUC disconnect procedures in OAR through 1580 must be followed. OARs can be found at: The rules are also available at most libraries and you can request a copy by contacting PUC Consumer Services at ; TTY 711. INTERRUPTION OF SERVICE AND SERVICE OUTAGES Q. How much notice does the water utility have to provide when it interrupts my water service for repairs or down time? A. The water utility may interrupt service for scheduled repairs, down time, or for emergencies. a) The water utility must provide advance written notice to all customers affected by any scheduled service interruption. Notice must be served by a door hanger or personal delivery at least five days in advance, or by US Mail at least ten days in advance of the interruption. b) In the case of outage due to emergency repairs or safety hazards, the utility must make a reasonable effort to notify affected customers in advance of the interruption. SYSTEM FLUSHING Q. Is the utility required to notify me before flushing the water system? A. A water utility must maintain its facilities according to industry rules, regulations, and standards and in such condition to provide safe, adequate, and continuous services to its customers, this includes maintaining a regular system of flushing. Customers should be notified of scheduled flushing as described above. Q. How often are water utilities required to flush out their systems? A. There is no set requirement. If you believe your water utility needs to flush its water mains more often than they do, talk to your utility. If after discussing it with the utility you do not feel your problem has been resolved, you may contact the PUC Consumer Services Section: PUC.consumers@state.or.us. Phone: or or TTY 711. Page 3 of 6

4 COMPLAINT PROCESS Q. What if I have a complaint about my water service? A. You should notify your utility. It is important to give your utility a chance to resolve the problem. Keep a record of your conversations (date, time, pertinent information) with the utility, including the name of the person you talked to. If you cannot resolve your complaint with the utility directly, you may contact the PUC Consumer Services Section and staff will make an effort to resolve the dispute between you and the utility. a) PUC.consumers@state.or.us. b) Phone: or or TTY 711. c) Address: PO Box 1088, Salem, OR UTILITY RESPONSE TO CUSTOMER Q. When I write or call the water utility and leave a message, how soon is the utility required to call me back? A. The utility must maintain a business location and a telephone number at which it may be contacted directly during its regular business hours and must respond to nonemergency inquiries, complaints, and service problems within one business day. The utility must provide a means by which it may be contacted at any hour regarding a water failure or emergency and must respond to the caller within one hour of the time of the call or message and promptly take appropriate action to resolve the failure or emergency. If extenuating circumstances exist that prevent the water utility from responding to the caller within one hour, the Commission may require the water utility to justify the delay. FINES AND PENALTIES Q. If a water utility is fined by the PUC or DHS Drinking Water Program for noncompliance, is that expense recoverable in customer rates? A. Typically fines are removed from allowable expenses when setting rates so customers do not bear the cost of the penalty. WATER PRESSURE Q. What is the required water pressure the water utility must provide? A. In general, water pressure measuring between 45 and 80 pounds per square inch in the water mains is sufficient to provide adequate pressure when measured on the customer s side of the meter. However, each water system is unique and the determination of adequate pressure varies by each system. Q. What can I do if I think my water pressure is too low? A. You have a right to request the water utility test your water pressure. The first test in a 12 month period is free of charge and must be conducted within seven calendar days of the request. If you request more than one test in any 12 month period at the same residence, the water utility may assess a reasonable charge, unless the pressure is not adequate. Page 4 of 6

5 SERVICE CONNECTION (HOOK-UP) FEES Q. What constitutes a service connection, and how much should this cost? A. Service connections are used to connect the utility's distribution network to the point of connection at the customer's service line which the utility owns and maintains. Customer's service lines are the lines used to convey water from the point of connection to the customer's point of usage and are owned and maintained by the customer. If authorized by its tariff or statement of rates, a utility may recover a reasonable, costbased service connection charge to offset the expense. CAN THEY DO THIS? Q. My house is outside of the city limits, but has always been served by the city. Now they are saying that they are considering not serving us. Can they do that? If they can, where am I supposed to get my water? A. The PUC does not regulate city water systems. You should contact the city to resolve the issue. Q. My water utility is very small. The owners have not paid their electric bill for the pump. What can I do to prevent my water service from being interrupted? A. You should contact the PUC Consumer Services Section for assistance. BACKFLOW PREVENTION OR CROSS CONNECTION Q. What is the Cross Connection and Backflow Prevention Program? A. The Oregon Public Health Authority, Drinking Water Program administers the Cross Connection Prevention Program. Water utilities are required to develop, implement, and maintain a backflow protection plan. Each utilities plan is individual to the system and all customers must comply with the program to protect the water system from contamination. Failure to comply with this program is considered grounds for disconnection. The plan is included in the water utility s tariffs or state of rates. METER TESTS Q. What should I do if I think there is something wrong with my water meter? A. If you believe your meter is not accurately measuring your water usage, you have a right to request the water utility test your meter. The utility must conduct the test within seven calendar days of your request. There is no charge for the first meter test in a 12 month period. If you request more than one test in any 12 month period at the same residence, and the test results indicate that the meter is registering within the two percent performance standard, the water utility may assess a reasonable charge if the charge is included in the water utility s tariff or statement of rates. Page 5 of 6

6 BILLINGS AND PAYMENTS Q. If I have been billed incorrectly, what should I do? A. If you believe you have been billed incorrectly, please contact the utility. The utility is obligated to investigate and report the results to you. You are entitled to have a supervisory review. If the dispute cannot be resolved the utility is required to notify you of the PUC dispute resolution procedure and give you the Consumer Services Section phone number , TTY 711. Q. If I am not able to pay a utility bill on time, will there be a late charge? A. Yes. The water utility has the authority to charge late fees which are determined annually by the Commission. This rate is included in the water utility s tariff or statement of rates. a) Applied to residential accounts with past-due balances at the time the subsequent bill is prepared. b) Applied to all other types of accounts with a past-due balance if payment is not received by the bill due date. c) May not be added to a residential account with a current time-payment plan. Q. If I cannot pay my bill in full, am I allowed to make payment arrangements? A. You can avoid disconnection of service if you enter into a written time-payment agreement with the utility. According to PUC rules, water utilities must offer at least the following two plans, provided the amounts owing are not related to theft of service, tampering, unauthorized use of water, or failure to abide by the terms of a time-payment plan. a) Levelized payment plan: Allows you to pay a down payment equal to your average annual bill, including the account balance, divided by 12. After paying the down payment you agree to pay a like payment each of the next 11 months. b) Equal pay arrearage plan: Allows you to make a payment equal to one-twelfth of your total amount owning, including any current amount due. Each month for the next 11 months you must pay an amount equal to the down payment, along with payment of your current monthly bill. The initial payment must be made within one business day of agreeing to the timepayment plan. If you fail to pay your time payment agreement as specified the water utility may disconnect your service after providing the appropriate notices. Page 6 of 6

MOUNTAIN HOME WATER DISTRICT 2323 SW Buckman Road West Linn, OR 97068

PUC Oregon No. 1 Original Sheet No. 1 Containing Rules and Regulations Governing Water Utility Service NAMING RATES FOR MOUNTAIN HOME WATER DISTRICT 2323 SW Buckman Road West Linn, OR 97068 503-475-8463