| All telecommunication companies that fall within the jurisdiction of the Arizona Corporation Commission must abide by the rules and regulations of Title 14, Article 5 of the Arizona Administrative Code. |
| Title 14, Article 5 of the Arizona Administrative Code covers most of the telephone industry rules and regulations. For your convenience, we have copied all of Title 14, Article 5 below. |
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| R14-2-501. Definitions |
| In this Article, unless the context otherwise requires, the following definitions shall apply: |
| 1. "Advance in aid of construction". Funds provided to the utility by the applicant under the terms of a construction agreement, which may be refundable. |
| 2. "Applicant". A person or agency requesting the utility to supply telephone service. |
| 3. "Application". A request to the utility for telephone service, as distinguished from an inquiry as to the availability or charges for such service. |
| 4. "Arizona Corporation Commission". The regulatory authority of the state of Arizona having jurisdiction over public service corporations operating in Arizona. |
| 5. "Basic exchange service". Service provided to business or residential customers at a flat or measured rate which affords access to the telecommunications network. |
| 6. "Billing period". The time interval between the issuance of 2 consecutive bills for utility service. |
| 7. "Central office". The switching equipment and operating arrangements which provide exchange and long distance service to the public and interconnection of customer telecommunication services. |
| 8. "Contribution in aid of construction". Funds provided to the utility by the applicant under the terms of a construction agreement or construction tariff which are not refundable. |
| 9. "Customer". The person or entity in whose name service is rendered, as evidenced by the signature on the application or contract for that service, or by the receipt and/or payment of bills regularly issued in his name regardless of the identity of the actual user of the service. |
| 10. "Day". Calendar day. |
| 11. "Line extension". The lines and equipment necessary to provide service to additional customers. |
| 12. "Person". Any individual, partnership, corporation, governmental agency, or other organization operating as a single entity. |
| 13. "Service access point". A demarcation point where facilities owned, leased, or under license by a customer connect to the utility provided access line. |
| 14. "Premises". All of the real property and apparatus employed in a single enterprise on an integral parcel of land undivided by public streets, alleys or railways. |
| 15. "Residential subdivision development". Any tract of land which has been divided into 4 or more contiguous lots with an average size of 1 acre or less for use for the construction of residential buildings or permanent mobile homes for either single or multiple occupancy. |
| 16. "Rules". The regulations set forth in the tariffs which apply to the provision of telephone service. |
| 17. "Service area". The territory in which the utility has been granted a Certificate of Convenience and Necessity and is authorized by the Commission to provide telephone service. |
| 18. "Service charge". The charge as specified in the utility's tariffs which covers the cost of establishing moving, changing or reconnecting service or equipment. |
| 19. "Access line". A communications facility that connects service from a common distribution source to the service access point. |
| 20. "Tariffs". The documents filed with the Commission which list the utility services and products offered by the utility and which set forth the terms and conditions and a schedule of the rates and charges for those services and products. |
| 21. "Terminal equipment". The equipment through which communication services are furnished. |
| 22. "Temporary service". Service to premises or enterprises which are temporary in character, or where it is known in advance that the service will be of limited duration. Service which, in the opinion of the utility, is for operations of a speculative character is also considered temporary service. |
| 23. "Toll service". Service between stations in different exchange areas for which a long distance charge is applicable. |
| 24. "Utility". The company providing telephone service to the public in compliance with state law. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). |
| R14-2-502. Certificate of Convenience and Necessity for telephone utilities; additions/extensions; abandonments |
| A. Application for new Certificate of Convenience and Necessity |
| 1. Six copies of each application for a new Certificate of Convenience and Necessity shall be submitted in a form prescribed by the Commission and shall include, at a minimum, the following information: |
| a. The proper name and correct address of the proposed utility company and its owner if a sole proprietorship, each partner if a partnership, or the President and Secretary if a corporation. |
| b. A copy of the Articles of Partnership or Articles of Incorporation for the applicant and/or Bylaws if the utility is a non-profit organization, or association. |
| c. The rates proposed to be charged for the service that will be rendered. |
| d. A financial statement setting forth the financial condition of the applicant. |
| e. Maps of the proposed service area and/or a description of the area proposed to be served. |
| f. Appropriate city, county and/or state agency approvals, where appropriate. |
| g. The actual number of customers within the service area as of the time of filing and the estimated number of customers to be served for each of the 1st 5 years of operation. |
| h. Such other information as the Commission by order or the staff of the Utilities Division by written directive may request. |
| 2. Once the applicant has satisfied the information requirements of this regulation, as well as any additional information required by the staff of the Commission's Utilities Division, the Commission shall, as expeditiously reasonably practicable, schedule hearings to consider such application. |
| B. Additions/extensions to existing Certificates of Convenience and Necessity. |
| Each utility which extends utility service to a person not located within its certificated service area, but located in a non-certificated area contiguous to its certificated service area, shall, notify the Commission of such service extension. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4). |
| R14-2-503. Establishment of service |
| A. Information from new applicants |
| 1. A utility may obtain the following minimum information from each new applicant for service: |
| a. Name or names of applicant(s). |
| b. Service address or location and telephone number |
| c. Billing address, if different than service address. |
| d. Address and telephone number where service was provided previously. |
| e. Date applicant will be ready for service. |
| f. Indication of whether premises have been supplied with telephone utility service previously. |
| g. Class of service to be provided. |
| h. Indication of whether applicant is owner or tenant of or agent for the premises. |
| 2. A utility may require a new applicant for service to appear at the utility's designated place of business to produce proof of identity and sign the utility's application form. |
| 3. Where service is requested by 2 or more individuals the utility shall have the right to collect the full amount owed to the utility from any 1 of the applicants. |
| B. Deposits |
| 1. A utility shall not require a deposit from a new applicant for residential service if the applicant is able to meet any of the following requirements: |
| a. The applicant has had continuous telephone service of a comparable nature with the utility at another service location within the past 2 years and was not delinquent in payment more than once during the last 12 consecutive months or disconnected for nonpayment. |
| b. The applicant can produce a letter regarding credit or verification from a telephone utility where service of a comparable nature was last received which states: |
| i. Applicant had a timely payment history at time of service discontinuation. |
| ii. Applicant has no outstanding liability from prior service. |
| c. In lieu of a deposit, a new applicant may provide a Letter of Guarantee from an existing customer with service who is acceptable to the utility or a surety bond as security for the utility. The utility shall review and release an existing customer as a guarantor for the new applicant after 12 consecutive months if no obligations are delinquent and has maintained a timely payment history. |
| 2. The utility shall issue a nonnegotiable receipt to the applicant for the deposit. The inability of the customer to produce such a receipt shall in no way impair his right to receive a refund of the deposit which is reflected on the utility's records. |
| 3. Deposits shall be interest bearing; the interest rate and method of calculation shall be filed with and approved by the Commission in a tariff proceeding. |
| 4. Each utility shall file a deposit refund policy with the Commission, subject to Commission review and approval during a tariff proceeding. However, each utility's refund policy shall include provisions for residential deposits and accrued interest to be refunded after 12 months of service if the customer has not been delinquent in the payment of utility bills or applied to the closing bill upon discontinuance of service. |
| 5. A utility may require a residential customer to establish a deposit if the customer becomes delinquent in the payment of 2 or more bills within a 12-consecutive-month period or has been disconnected for service during the last 12 months. |
| 6. The amount of a deposit required by the utility shall be determined according to the following terms: |
| a. Residential customer deposits shall not exceed 2 times that customer's estimated average monthly bill or the average monthly bill for the customer class for that customer which ever is greater. |
| b. Nonresidential customer deposits shall not exceed 2 1/2 times that customer's estimated maximum monthly bill. |
| 7. The utility may review the customer's usage after service has been connected and adjust the deposit amount based upon the customer's actual usage. |
| C. Grounds for refusal of service. |
| A utility may refuse to establish service if any of the following conditions exist: |
| 1. The applicant has an outstanding amount due for similar utility services and the applicant is unwilling to make acceptable arrangements with the utility for payment. |
| 2. A condition exists which in the utility's judgment is unsafe or hazardous to the applicant, the general population, or the utility's personnel or facilities. |
| 3. Refusal by the applicant to provide the utility with a deposit when the customer has failed to meet the credit criteria for waiver of deposit requirements. |
| 4. Customer is known to be in violation of the utility's tariffs filed with the Commission. |
| 5. Failure of the customer to furnish such funds, suitable facilities, and/or rights-of-way necessary to serve the customer and which have been specified by the utility as a condition for providing service. |
| 6. Applicant falsifies his or her identity for the purpose of obtaining service. |
| D. Service establishments, re-establishments or reconnection charge |
| 1. Each utility may make a charge as approved by the Commission for the establishment, reestablishment, or reconnection of utility services. |
| 2. Should service be established during a period other than regular working hours at the customer's request, the customer may be required to pay an after-hour charge for the service connection. |
| 3. For the purpose of this rule, service establishments are where the customer's and utility's facilities are ready and acceptable. |
| E. Temporary service |
| 1. Applicants for temporary service may be required to pay the utility, in advance of service establishment, the funds provided under the terms of a construction agreement or the cost of installing and removing the facilities necessary for furnishing the desired service. |
| 2. Where the duration of service is to be less than 1 month, the applicant may also be required to advance a sum of money equal to the estimated bill for service. |
| 3. If at any time the character of a temporary customer's operations changes so that in the opinion of the utility the customer is classified as permanent, the terms of the utility's construction agreement or tariff shall apply. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4). |
| R14-2-504. Minimum customer information requirements |
| A. Information for residential customers |
| 1. Each utility shall make available upon customer request not later than 60 days from the date of request a concise summary of the rate schedule applied for by such customer. The summary shall include the following: |
| a. The charges for basic service and incremental ancillary services requested by the applicant. |
| 2. In addition, a utility shall make available upon customer request not later than 60 days from date of service commencement a concise summary of the utility's tariffs or the Commission's rules and regulations concerning: |
| a. Deposits |
| b. Terminations of service |
| c. Billing and collection |
| d. Complaint handling. |
| B. Information required due to changes in tariffs |
| 1. Each utility shall transmit to affected customers by the most economic means available a concise summary of any change in the utility's tariffs affecting those customers. |
| 2. This information shall be transmitted to the affected customer within 60 days of the effective date of the change. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). |
| R14-2-505. Service connections and establishments |
| A. Priority and timing of service establishments |
| 1. After an applicant has complied with the utility's application, construction agreement, or tariff, deposit requirements and has been accepted for service by the utility, the utility shall schedule that customer for service connection and/or establishment. |
| 2. Service establishments shall be scheduled for completion within 10 working days of the date the customer has been accepted for service, except in those instances when the customer requests service establishment beyond the 10 working day limitation. |
| 3. The maximum interval of 10 working days applies to single line residence and business installations only. Multiline services and any special equipment configurations shall be installed within a reasonable time-frame based on availability of necessary equipment. |
| 4. When a utility has made arrangements to meet with a customer for service establishment purposes and the utility or the customer cannot make the appointment during the prearranged time, the utility shall reschedule the establishment to the satisfaction of both parties. |
| 5. Unless another time-frame is mutually acceptable to the utility and the customer, each utility shall schedule service establishment appointments within a maximum range of 4 hours during normal working hours. |
| 6. For the purposes of this rule, service establishments are where the utility's and customer's facilities are available and the utility needs only to connect the service. |
| B. Access line connection |
| 1. Provision of services beyond service access point |
| a. Facilities beyond the service access point may be provided by either the utility or the customer. Where the facilities are provided by the customer the installation shall be in accordance with the utility's specifications. |
| b. The cost of all new construction of inside customer premise wiring shall be the responsibility of the customer. |
| 2. Company provided facilities |
| a. The utility shall provide all facilities up to the service access point. |
| b. A customer requesting an underground service connection in an area served by overhead facilities shall pay for the difference between the cost of an overhead service connection and the actual cost of the underground connection as a nonrefundable contribution. The customer may elect to provide the underground trenching on private property as an offsetting portion of the additional cost of the underground facilities. |
| c. In those instances where the utility is supplying the customer's terminal equipment, the utility may provide any inside wiring beyond the point of access in accordance with approved tariffs filed with the Commission. |
| 3. Easements and rights-of-way |
| a. Each customer shall grant adequate easement and right-of-way satisfactory to the utility to ensure that customer's proper service connection. Failure on the part of the customer to grant adequate easement and right-of-way shall be grounds for the utility to refuse service. |
| b. When a utility discovers that a customer or his agent is performing work or has constructed facilities adjacent to or within an easement or right-of-way and such work, construction or facility poses a hazard or is in violation of federal, state or local laws, ordinances, statutes, rules or regulations, or significantly interferes with the utility's access to equipment, the utility shall notify the customer or his agent and shall take whatever actions are necessary to eliminate the hazard, obstruction or violation at the customer's expense. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). |
| R14-2-506. Construction Agreements |
| A. General requirements |
| 1. Each utility shall file for Commission approval a tariff which incorporates the provisions of this rule and specifically defines the conditions governing construction agreements. Subsections (A), (B), (C), and (D) of this Section do not apply to tariffs providing for construction charges fixed by zone. |
| 2. Upon request by an applicant for service, the utility shall provide, without charge, a preliminary sketch and rough estimates of the cost of installation to be paid by said applicant. |
| 3. Any applicant for service requesting the utility to prepare detailed plans, specifications, or cost estimates may be required to deposit with the utility an amount equal to the estimated cost of preparation. The utility shall, upon request, make available within 90 days after receipt of the deposit referred to above, such plans, specifications, or cost estimates of the proposed construction. Where the applicant authorizes the utility to proceed with construction of the extension, the deposit shall be credited to the cost; otherwise the deposit shall be nonrefundable. If the extension is to include oversizing of facilities to be done at the utility's expense, appropriate details shall be set forth in the plans, specifications and cost estimates. |
| 4. Where the utility requires an applicant to advance funds for construction, the utility shall furnish the applicant with a copy of the agreement or tariff of the appropriate utility prior to the applicant's acceptance. |
| 5. All construction agreements requiring payment by the applicant shall be signed by each party. |
| 6. In the event the utility's actual cost of construction is less than the amount advanced by the customer under a construction agreement, the utility shall make a refund to the applicant within 120 days of service commencement. |
| 7. The provisions of this rule apply only to those applicants who in the utility's judgment will be permanent customers of the utility. Applications for temporary service shall be governed by the Commission's rules concerning temporary service applications. |
| B. Minimum written agreement requirements |
| 1. Each construction agreement shall, at a minimum, include the following information: |
| a. Name and address of applicant or applicants |
| b. Proposed service address or location |
| c. Description of requested service |
| d. Description and sketch of the requested construction |
| e. A cost estimate to include materials, labor, and other costs as necessary |
| f. Payment terms |
| g. A concise explanation of any refunding provisions, if applicable |
| h. Utility's estimated start date and completion date for construction |
| i. A summary of the results of the economic feasibility analysis performed by the utility to determine the amount of advance required from the applicant for the proposed construction. |
| 2. Each applicant shall be provided with a copy of the construction agreement. |
| C. Construction requirements. |
| Each construction tariff shall include the following provisions: |
| 1. A maximum footage and/or equipment allowance to be provided by the utility at no charge. The maximum footage and/or equipment allowance may be differentiated by customer class. |
| 2. An economic feasibility analysis for construction which exceed the maximum footage and/or equipment allowance. Such economic feasibility analysis shall consider the incremental revenues and costs associated with the construction. In those instances where the requested construction does not meet the economic feasibility criteria established by the utility, the utility may require the customer to provide funds to the utility, which will make the construction economically feasible. The methodology employed by the utility in determining economic feasibility shall be applied uniformly and consistently to each applicant requiring a construction. |
| 3. The timing and methodology by which the utility will refund any advances in aid of construction as additional customers are served off the construction project. The customer may request an annual survey to determine if additional customers have been connected to and are using service from the project. In no case shall the amount of the refund exceed the amount originally advanced. |
| 4. All advances in aid of construction shall be noninterest bearing. |
| 5. If after 5 years from the utility's receipt of the advance, the advance has not been totally refunded, the advance shall be considered a contribution in aid of construction and shall no longer be refundable. |
| D. Residential subdivision development and permanent mobile home parks. |
| Each utility shall submit as a part of its construction tariff provisions for residential subdivision developments and permanent mobile home parks. |
| E. Underground extension of communication lines |
| 1. Extension of communication lines necessary to furnish permanent communication service to new residential buildings or mobile homes within a new or undeveloped subdivision and to residential development in which facilities for communication service have not been constructed for which applications are made by a developer shall be installed underground in accordance with the provisions set forth in this regulation and in accordance with applicable tariffs on file with this Commission except where it is not feasible from an engineering, operational or economic standpoint. |
| 2. Rights-of-way and easements |
| a. The utility shall construct or cause to be constructed and shall own, operate and maintain all underground communication feeder, distribution and service lines along public streets, roads and highways and on public lands and private property which the utility has the legal right to occupy. |
| b. Rights-of-way and easements suitable to the utility must be furnished by the developer at no cost to the utility and in reasonable time to meet service requirements. No underground communication facilities shall be installed by a utility until the final grades have been established and furnished to the utility. In addition, the easement strips, alleys and streets must be graded to within 6 inches of final grade by the developer before the utility will commence construction. Such clearance and grading must be maintained by the developer during construction by the utility. |
| c. If, subsequent to construction, the clearance or grade is changed in such a way as to require relocation of the underground facilities, the cost of such relocation shall be borne by the developer or subsequent owners. |
| 3. Installation of underground communication lines within subdivision and multiple occupancy residential developments: |
| a. The developer shall provide the trenching backfill (including any imported backfill required), compaction, repaving, and any earthwork required to install the underground communication system all in accordance with the reasonable specifications and schedules of other utilities in the same area when feasible. At its option, if the utility's cost therefore is equal to or less than that which the developer would otherwise have to bear, the utility may elect at the developer's expense to perform the activities necessary to fulfill the developer's responsibility hereunder. |
| b. Each utility shall promptly inspect the trenching provided by the developer and allow for phased inspection of trenching. In all cases, the utility shall make every effort to expedite the inspection of developer provided trenching. |
| c. The utility shall install or cause to be installed underground communication lines and related equipment in accordance with the applicable provisions of the 1997 edition (an no future editions) of ANSI C2 (National Electrical Safety Code) with sufficient capacity and suitable materials which shall assure adequate and reasonable communication service in the foreseeable future. |
| d. When developer is required to provide a trench for other underground utilities and services, the utility shall use such common trench as long as the utility's design layout, easement specification, routing and scheduling requirements can be met, unless otherwise agreed upon by utility and developer in writing or as otherwise established by the Commission. |
| 4. Special conditions |
| a. When the application of any of the provisions of the regulation appears to either party not to be feasible from an engineering, operational or economic standpoint, the utility or the developer may refer the matter to the Commission for a determination as to whether an exception to the underground policy expressed within the provisions of this regulation is warranted. Interested 3rd parties may present their views to the Commission in conjunction with such referrals. |
| b. Notwithstanding any provision of this regulation to the contrary, no utility shall construct overhead communication lines in any new subdivision or new multiple occupancy residential development to which this regulation is applicable and which is contiguous to another subdivision or multiple occupancy residential development in which service is furnished underground without the approval of the Commission after a public hearing. |
| F. Nonapplicability. |
| Any underground communication distribution system requiring more than normal communication service is not covered by this regulation and shall be constructed pursuant to the effective rules and regulations of the affected utility as approved by the Commission. |
| G. Ownership of facilities. |
| Any facilities installed hereunder shall be the sole property of the utility. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended by exempt rulemaking at 5 A.A.R. 2054, effective June 4, 1999 (Supp. 99-2). Amended to correct subsection numbering (Supp. 99-4). |
| Editor's Note: The following Section was amended under an exemption from the Attorney General certification provisions of the Arizona Administrative Procedure Act (State ex. Rel. Corbin v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App. 1992)), as determined by the Corporation Commission. This exemption means that the rules as amended were not certified by the Attorney General. |
| R14-2-507. Provision of Service |
| A. Utility responsibility. |
| Each utility shall be responsible for maintaining in safe operating condition all equipment and fixtures used in providing utility service to the customer that are owned by and under the exclusive control of the utility. |
| B. Customer responsibility |
| 1. Each customer shall be responsible for safeguarding all utility property installed in or on the customer's premises for the purpose of supplying utility service to that customer. |
| 2. Each customer shall be responsible for maintaining in safe operating condition all customer provided equipment and fixtures. |
| 3. Each customer shall exercise all reasonable care to prevent loss or damage to utility property, excluding ordinary wear and tear. The customer shall be responsible for loss of or damage to utility property on the customer's premises arising from neglect, theft, carelessness, or misuse and shall reimburse the utility for the cost of necessary repairs or replacements. |
| 4. Each customer shall be responsible for payment for any equipment damage and/or use resulting from unauthorized use, interfering or tampering of the utility's equipment on the customer's premises. |
| 5. Each customer shall notify the utility of any equipment failure identified in the utility's equipment. |
| C. Continuity of service. |
| Each utility shall make reasonable efforts to supply a satisfactory and continuous level of service. However, no utility shall be responsible for any damage or claim of damage attributable to any interruption or discontinuation of service resulting from but not limited to: |
| 1. Any cause against which the utility could not have reasonably foreseen or made provision for, that is, force majeure. |
| 2. Intentional service interruptions to make repairs or perform routine maintenance of services constituting excusable negligence. |
| D. Service interruptions |
| 1. Each utility shall make reasonable efforts to reestablish service within the shortest possible time when service interruptions occur. |
| 2. Each utility shall make reasonable provisions to meet emergencies resulting from failure of service, and each utility shall issue instructions to its employees covering procedures to be followed in the event of emergency in order to prevent or mitigate interruption or impairment of service. |
| 3. In the event of a national emergency or local disaster resulting in disruption of normal service, the utility may, in the public interest, interrupt service to other customers to provide necessary service to civil defense or other emergency service agencies on a temporary basis until normal service to these agencies can be restored. |
| 4. When a utility plans to interrupt service for more than 4 hours to perform necessary repairs or maintenance, the utility shall attempt to inform affected customers at least 24 hours in advance of the scheduled date and estimated duration of the service interruption. Such repairs shall be completed in the shortest possible time to minimize the inconvenience to the customers of the utility. |
| 5. The Commission shall be notified of major interruptions in service affecting the entire system or any major division. |
| E. Construction standards. |
| Each utility shall construct all facilities in accordance with the provisions of the 1997 edition (and no future editions) of ANSI C2 (National Electrical Safety Code), incorporated by reference and on file with the Office of the Secretary of State. Copies are available from the Institute of Electrical and Electronic Engineers, Inc., 345 East 47th Street, New York, New York 10017. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended effective August 16, 1996 (Supp. 96-3). Amended by exempt rulemaking at 5 A.A.R. 2054, effective June 4, 1999 (Supp. 99-2). Amended to correct subsection numbering (Supp. 99-4). |
| R14-2-508. Billing and collection |
| A. Frequency. |
| Each utility shall bill monthly for services rendered. |
| B. Minimum bill information. |
| Each utility shall provide the following minimum information on customer bills: |
| 1. Monthly charge for basic exchange service including delineation of the following: |
| a. Total charge for customer requested services and/or equipment. |
| b. Installation costs or other service fees, where applicable. |
| c. Reconnect fee, where applicable. |
| 2. Toll charges broken down to include the following details by toll call: |
| a. Date of call |
| b. Time of call |
| c. Location called |
| d. Phone number called |
| e. Duration of call |
| f. Indication of any rate class applied. |
| 3. Miscellaneous charges and credits shall be shown separately. |
| 4. Any taxes included in the customer's billing. |
| 5. Total amount due and due date. |
| 6. Past due amount. |
| 7. Utility telephone number. |
| 8. Customer's name. |
| 9. Service account number. |
| C. Billing terms: |
| Each utility shall file a tariff which incorporates the following billing procedures: |
| 1. The billing date shall be printed on the bill and the date rendered shall be the mailing date. |
| 2. Bills for telephone services may be considered delinquent 15 days after the date the bill is rendered. |
| 3. Delinquent accounts for which payment has not been received may be terminated 22 days after the date the bill is rendered. |
| 4. All payments shall be made at or mailed to the office of the utility or to the utility's duly authorized representative. |
| D. Applicable tariffs, prepayment, failure to receive, commencement date, taxes |
| 1. Each customer shall be billed under the applicable tariff. |
| 2. Each utility shall make provisions for advance payment for utility services. |
| 3. Failure to receive bills or notices which have been properly placed in the United States mail shall not prevent such bills from becoming delinquent nor relieve the customer of his obligations therein. |
| 4. Charges for service commence when the service is installed and connection made, whether used or not. |
| 5. In addition to the collection of regular rates, each utility may collect from the customer a proportionate share of any privilege, sales or use tax, or other imposition based on the gross revenues received by the utility. |
| E. Insufficient funds (NSF) checks |
| 1. A utility shall be allowed to recover a fee, as approved by the Commission in a tariff proceeding, for each instance where a customer tenders payment for utility service with an insufficient funds check. |
| 2. When the utility is notified by the customer's bank that there are insufficient funds to cover the check tendered for utility service, the utility may require the customer to make payment in cash, by money order, certified check, or other means which guarantee the customer's payment to the utility. |
| 3. A customer who tenders an insufficient check shall in no way be relieved of the obligation to render payment to the utility under the original terms of the bill nor defer the utility's provision for termination of service for nonpayment of bills. |
| F. Deferred payment plan |
| 1. Each utility may, prior to termination, offer to qualifying residential customers a deferred payment plan for the customer to retire unpaid bills for utility service. |
| 2. Each deferred payment agreement entered into by the utility and the customer due to the customer's inability to pay an outstanding bill in full shall provide that service will not be discontinued if: |
| a. Customer agrees to pay a reasonable amount of the outstanding bill at the time the parties enter into the deferred payment agreement. |
| b. Customer agrees to pay all future bills for utility service in accordance with the billing and collection tariffs of the utility. |
| c. Customer agrees to pay a reasonable portion of the remaining outstanding balance in installments over a period not to exceed 6 months. |
| 3. For the purposes of determining a reasonable installment payment schedule under these rules, the utility and the customer shall give consideration to the following conditions: |
| a. Size of the delinquent account |
| b. Customer's ability to pay |
| c. Customer's payment history |
| d. Length of time that the debt has been outstanding |
| e. Circumstances which resulted in the debt being outstanding |
| f. Any other relevant factors related to the circumstances of the customer. |
| 4. Any customer who desires to enter into a deferred payment agreement shall establish such agreement prior to the utility's scheduled termination date for nonpayment of bills; customer failure to execute a deferred payment agreement prior to the scheduled termination date shall not prevent the utility from discontinuing service for nonpayment. |
| 5. Deferred payment agreements may be in writing and may be signed by the customer and an authorized utility representative. |
| 6. A deferred payment agreement may include a finance charge as approved by the Commission in a tariff proceeding. |
| 7. If a customer has not fulfilled the terms of a deferred payment agreement, the utility shall have the right to disconnect service pursuant to the utility's termination of service rules and, under such circumstances, it shall not be required to offer subsequent negotiation of a deferred payment agreement prior to disconnection. |
| G. Late payment penalty |
| 1. Each utility may include in its tariffs a late payment penalty which may be applied to delinquent bills. |
| 2. The amount of the late payment penalty shall be indicated upon the customer's bill when rendered by the utility. |
| 3. In the absence of an approved tariff, the amount of the late payment penalty shall not exceed 1-1/2% of the delinquent bill. |
| H. Change of responsibility or occupancy |
| 1. Not less than 3 working days advance notice must be given in person, in writing, or by telephone at the utility's office to discontinue service, to change occupancy or to change account responsibility. |
| 2. The customer in whose name service is being rendered shall be responsible for all utility services provided and/or consumed up to the scheduled date of service discontinuation. |
| 3. Existing business service may be continued for a new subscriber only if the former subscriber consents and an agreement acceptable to the utility is made to pay all outstanding charges against the service. |
| 4. Change of responsibility on a residence account shall occur only in those cases where both parties previously shared telephone service. |
| Historical Note: Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4). |
| R14-2-509. Termination of service |
| A. Nonpermissible reasons to disconnect service. A utility may not disconnect service for any of the reasons stated below: |
| 1. Delinquency in payment for services rendered to a prior customer at the premises where service is being provided, except in the instance where the prior customer continues to reside on the premises. |
| 2. Failure of the customer to pay for services or equipment which are not regulated by the Commission. |
| 3. Residential service may not be disconnected due to nonpayment of a bill related to another class of service. |
| 4. Failure to pay for a bill to correct a billing error if the customer agrees to pay over a reasonable period of time. |
| 5. Failure to pay the bill of another customer as guarantor thereof unless guarantor does not make acceptable payment arrangements. |
| 6. Disputed bills where the customer has complied with the Commission's rules on complaints. |
| B. Termination of service without notice |
| 1. Utility service may be disconnected without advance written notice under the following conditions: |
| a. The existence of an obvious hazard to the safety or health of the consumer or the general population or the utility's personnel or facilities. |
| b. The utility has evidence of tampering or evidence of fraud. |
| 2. The utility shall not be required to restore service until the conditions which resulted in the termination have been corrected to the satisfaction of the utility. |
| 3. Each utility shall maintain a record of all terminations of service without notice. This record shall be maintained for a minimum of 1 year and shall be available for inspection by the Commission. |
| C. Termination of service with notice |
| 1. A utility may disconnect service to any customer for any reason stated below provided the utility has met the notice requirements established by the Commission: |
| a. Customer violation of any of the utility's tariffs filed with the Commission and/or violation of the Commission's rules and regulations. |
| b. Failure of the customer to pay a bill for utility service. |
| c. Failure to meet or maintain the utility's credit and deposit requirements. |
| d. Failure of the customer to provide the utility reasonable access to its equipment and property. |
| e. Customer breach of contract for service between the utility and customer. |
| f. When necessary for the utility to comply with an order of any governmental agency having such jurisdiction. |
| g. Unauthorized resale of equipment or service. |
| 2. Each utility shall maintain a record of all terminations of service with notice. This record shall be maintained for 1 year and be available for Commission inspection. |
| D. Termination notice requirements |
| 1. No utility shall terminate service to any of its customers without providing advance written notice to the customer of the utility's intent to disconnect service, except under those conditions specified where advance written notice is not required. |
| 2. Such advance written notice shall contain, at a minimum, the following information: |
| a. The name of the person whose service is to be terminated and the telephone number where service is being rendered. |
| b. The utility rules or regulation that was violated and explanation thereof or the amount of the bill which the customer has failed to pay in accordance with the payment policy of the utility, if applicable. |
| c. The date on or after which service may be terminated. |
| d. A statement advising the customer to contact the utility at a specific phone number for information regarding any deferred billing or other procedures which the utility may offer or to work out some other mutually agreeable solution to avoid termination of the customer's service. |
| E. Timing of terminations with notice |
| 1. Each utility shall be required to give at least 5 days advance written notice prior to the termination date. |
| 2. Such notice shall be considered to be given to the customer when a copy thereof is left with the customer or posted first class in the United States mail, addressed to the customer's last known address. |
| 3. If after the period of time allowed by the notice has elapsed and the delinquent account has not been paid nor arrangements made with the utility for the payment thereof or in the case of a violation of the utility's rules the customer has not satisfied the utility that such violation has ceased, the utility may then terminate service on or after the day specified in the notice without giving further notice. |
| 4. The utility may terminate service on a temporary basis by discontinuing the customer's line access at the central office. |
| 5. The utility shall have the right (but not the obligation) to remove any or all of its property installed on the customer's premises upon the termination of service. |
| 6. The terms and conditions of these rules shall apply in all circumstances except those superseded by the provisions of the high toll usage notification procedures. |
| F. High toll usage monitoring/notification procedures |
| 1. Each telephone utility may establish a high toll usage monitoring/notification system to identify unexplained or excessive increases in customer toll usage during interim periods between the issuance of bills in accordance with the utility's established billing cycle. The intent of such a monitoring/notification system is to enable telephone utilities to identify situations where it is unlikely that the customer will be able to pay for toll services already provided as well as to prevent the accrual of additional billings when the risk of loss is increasingly evident. |
| 2. Each utility which establishes a high toll monitoring/notification system shall develop and operate such system and be governed by the following provisions and procedures: |
| a. Each utility shall establish a "normal" amount of toll usage by customer class and length of service. The normal amount of toll usage shall be based upon the actual average usage by the customer class. |
| b. Increases in toll usage shall not be considered unexplained or excessive until the amount of toll usage incurred between billing periods is at least 2 times the normal amount of monthly toll usage for that customer or customer class. |
| c. When this situation occurs, the utility shall review: |
| i. The individual customer's billing history to determine if the volume of toll usage should be considered excessive for that particular customer |
| ii. Prior payment history |
| iii. Amount of customer deposit held, if any |
| iv. Length of customer service to assess the ability of the customer to pay such toll charges according to the payment terms of the utility when a normal billing is rendered. |
| d. If the review of the customer's previous billing and payment history indicates it is unlikely that the customer shall be able to pay such bill, the utility may contact the customer to make inquiries concerning the abnormal usage. If the explanation is not satisfactory, the utility may require security and/or payment of charges on the account to continue service. |
| e. The utility may terminate service provided the customer is given 48 hours advance notice and the customer makes no further attempt to secure and or pay the account in order to continue service. |
| f. The 48-hour notification rule shall be waived and service may be terminated immediately in those situations where intentional customer abuse of toll usage is evident. |
Historical Note
Adopted effective March 2, 1982 (Supp. 82-2). Amended to correct subsection numbering (Supp. 99-4). |
| Editor's Note: The following Section was amended under an exemption from the Attorney General approval provisions of the Arizona Administrative Procedure Act (State ex. rel. Corbin v. Arizona Corporation Commission, 174 Ariz. 216 848 P.2d 301 (App. 1992)), as determined by the Corporation Commission. This exemption means that the rules as amended were not approved by the Attorney General. |
| R14-2-510. Administrative and Hearing Requirements |
| A. Customer service complaints |
| 1. Each utility shall make a full and prompt investigation of all service complaints made by its customers, either directly or through the Commission. |
| 2. The utility shall respond to the complainant and/or the Commission representative within 5 working days as to the status of the utility investigation of the complaint. |
| 3. The utility shall notify the complainant and/or the Commission representative of the final disposition of each. Upon request of the complainant or the Commission representative, the utility shall report the findings of its investigation in writing. |
| 4. Each utility shall keep a record of all written service complaints received which shall contain, at a minimum, the following data: |
| a. Name and address of complainant |
| b. Date and nature of the complaint |
| c. Disposition of the complaint |
| d. A copy of any correspondence between the utility, the customer, and/or the Commission. |
| 5. This record shall be maintained for a minimum period of 1 year and shall be available for inspection by the Commission. |
| B. Customer bill disputes |
| 1. Any utility customer who disputes a portion of a bill rendered for utility service shall pay the undisputed portion of the bill and notify the utility's designated representative that such unpaid amount is in dispute prior to the delinquent date of the bill. |
| 2. Upon receipt of the customer notice of dispute, the utility shall: |
| a. Notify the customer within 5 working days of the receipt of a written dispute notice. |
| b. Initiate a prompt investigation as to the source of the dispute. |
| c. Withhold disconnection of service until the investigation is completed and the customer is informed of the results. |
| 3. Once the customer has received the results of the utility's investigation, the customer shall submit payment within 5 working days to the utility for any disputed amounts. Failure to make full payment shall be grounds for termination of service. Prior to termination inform the customer of his right of appeal to the Commission. |
| C. Commission resolution of service and/or bill disputes |
| 1. In the event a customer and utility cannot resolve a service and/or bill dispute, the customer shall file a written statement of dissatisfaction with the Commission; by submitting such notice to the Commission, the customer shall be deemed to have filed an informal complaint against the utility. |
| 2. Within 30 days of the receipt of a written statement of customer dissatisfaction related to a service or bill dispute, a designated representative of the Commission shall endeavor to resolve the dispute by correspondence and/or telephone with the utility and the customer. If resolution of the dispute is not achieved within 20 days of the Commission representative's initial effort, the Commission shall hold an informal hearing to arbitrate the res |
