Needles Municipal Code Art. 6C I Terms and Conditions for the Sale of Electric Services

The following terms and conditions and any changes authorized by the city council or law will apply to the sale of electric services under the established rate or rates authorized by the city council and currently applicable at time of sale. The rates included in this Chapter 6C may be amendment by resolution of the city council after a duly noticed public hearing, which amended rates shall supersede the rates included in this Chapter 6C to the extent inconsistent therewith.

1. General.

1.1 Electric service will be supplied in accordance with these terms and conditions, any changes required by City or law, and such applicable rate or rates as may from time to time be authorized by City. However, in the case of a Customer whose service requirements are of unusual size or characteristics, additional or special rate and contract arrangements may be required.

1.2 These terms and conditions shall be considered a part of City rate schedules except where specifically changed by written agreement by City.

1.3 In case of conflict between any provision of a rate schedule and these terms and conditions, the provisions of the rate schedule shall apply.

1.4 The failure of City to insist upon strict performance of any of the provisions in the terms and conditions, or to exercise any of the rights or remedies provided in the terms and conditions, or any delay in the exercise of any of the rights or remedies, shall not release Customer from any responsibilities or obligations imposed by law or by the terms and conditions, and shall not be deemed a waiver of any rights of City to insist upon strict performance of the terms and conditions.

2. Establishment of service.

2.1 Application for service. Customer requesting electric service may be required to appear at City’s place of business to produce proof of identity and sign City’s standard form of application for service or a contract before service is supplied by City. Customers must provide a lease or Grant Deed to have service established.

2.1.1 In the absence of a signed application or contract for service, the supplying of electric service by City and acceptance thereof by Customer shall be deemed to constitute a service agreement by and between City and Customer for delivery, acceptance of, and payment for service, subject to City’s applicable rates and rules and regulations. 2.1.2 For purposes of any amount owed to City that is not more than four (4) years old, City shall have the right to collect the full amount owed City by any or all of the applicants prior to establishment of service.

2.2 Service establishment charge. A service establishment charge, determined by the cost of providing residential or nonresidential electric service, will be assessed each time City is requested to establish, reconnect, or reestablish electric service to Customer’s delivery point. Billing for the service establishment charge may be rendered as part of Customer’s first bill.

2.2.1 Customer will be required to pay the above appropriate service establishment charge and an after-hours charge as established by the cost of services should Customer request service be established during a period other than regular working hours.

2.3 Grounds for refusal of service. City may refuse to establish or reestablish service if any of the following conditions exist:

2.3.1 Applicant has an outstanding amount due to City that is not more than four (4) years old and is unwilling to make payment.

2.3.2 A condition exists, which in City’s judgment, is unsafe or hazardous.

2.3.3 Applicant has failed to satisfy the security deposit requirements set forth by City as specified in section 2.6.

2.3.4 If Applicant has previously engaged in conduct that constitutes, but not limited to, a material violation of City’s applicable rate schedules, rules, or regulations.

2.3.5 If Applicant does not furnish the necessary funds, service entrance equipment, easements, or rights-of-way that have been specified by City as a condition for providing service.

2.3.6 Applicant falsifies his or her identity for the purpose of obtaining service.

2.3.7 Service is already being provided at the address for which Applicant is requesting service.

2.3.8 If service at the same address has previously been terminated for nonpayment, and a delinquent balance on that account less than four (4) years old remains outstanding. This restriction applies when the prior account holder continues to reside at the premises with Applicant.

(a) City has evidence of meter tampering or fraud.

(b) Failure to pay a delinquent bill for utility service.

(c) Failure to maintain deposit requirements.

(d) Failure to pay for a bill to correct a previous underbilling.

(e) Failure to comply with curtailment procedures imposed by the City during supply shortages.

(f) Failure to provide reasonable and safe access to City’s equipment and property.

(g) Breach of written contract between City and Customer.

2.3.10 Applicant has failed to obtain all required permits and/or inspections indicating that applicant’s facilities comply with local construction and safety codes.

2.4 Establishment of residential credit or security deposit.

2.4.1 Residential establishment of credit. City shall not require a security deposit from a new Applicant for residential electric service if Applicant is able to meet any of the following requirements:

2.4.1.1 Applicant has had service of a comparable nature with City at another service location within past two (2) years and was not delinquent in payment to any utility during the last twelve (12) consecutive months, or disconnected for nonpayment, or has not had an unpaid final bill.

2.4.1.2 Applicant can provide a letter regarding credit or verification from an electric utility where service of a comparable nature was received within the last two (2) years. The letter must state that: (i) the Applicant maintained a satisfactory payment history at the time service was discontinued; and (ii) the service was provided for a continuous period of at least twelve (12) consecutive months. Satisfactory payment history shall mean no delinquent payments during the last twelve (12) consecutive months of service.

2.4.1.3 Applicant provides a guarantor, satisfactory to the City, to secure payment of bills for the service being requested. Guarantor must be a City of Needles resident with no delinquent payments during the last twenty-four (24) months.

2.4.2 Residential establishment of security deposit. When credit cannot be established as provided for in section 2.4.1 hereof or when it is determined that applicant left an unpaid final bill owing to another utility, applicant may be required to place a cash deposit to secure payment of bills for service.

2.5 Establishment of nonresidential credit or security deposit.

2.5.1 Nonresidential establishment of credit. Customer(s) must provide a lease or Grant Deed to have service established. City shall not require a security deposit from a new Applicant for nonresidential electric service if applicant is able to meet any of the following requirements:

2.5.1.1 Applicant shall have maintained service of a comparable nature with City, or with another service provider, for a minimum period of one (1) year within the preceding two (2) years, and shall not, during the twelve (12) consecutive months immediately preceding application, have been delinquent in the payment of any utility charges, disconnected for nonpayment, or subject to an unpaid final bill.

2.5.1.2 Applicant shall provide a letter of credit or verification from the electric utility with which service of a comparable nature was most recently maintained, which letter shall state that the Applicant had a satisfactory payment history at the time of discontinuance of such service, and that such service was maintained for a minimum of twelve (12) consecutive months.

2.5.2 Nonresidential establishment of security deposit. All nonresidential Customers may be required to:

2.5.2.1 Place a cash deposit to secure the payment of bills for service as prescribed herein, or

2.5.2.2 Provide a non-cash security deposit in the form of a surety bond, an irrevocable letter of credit, or an assignment of funds, in an amount equal to the required security deposit. Large Commercial Customers shall be subject to section 2.7.3 and shall maintain a security deposit on file with City at all times during the term of service. For purposes of Chapter 6C, a Large Commercial Customer shall mean a nonresidential Customer occupying a building or service space of twenty thousand (20,000) of more in the City of Needles.

2.6 Re-establishment of security deposit.

2.6.1 Residential. City may require a residential Customer to establish or reestablish a security deposit if Customer becomes delinquent or if the Customer has been disconnected for nonpayment during the last twelve (12) months, or when Customer’s financial condition may jeopardize the payment of their bill as determined by a bankruptcy filing.

2.6.2 Nonresidential. City may require a nonresidential Customer to establish or reestablish a security deposit under any of the following circumstances: (i) Customer has become delinquent in payment; (ii) Customer has been disconnected for nonpayment within the preceding twelve (12) months; or (iii) Customer’s financial condition is determined, on the basis of a credit investigation, notice of financial reorganization, or bankruptcy filing, to jeopardize the timely payment of amounts due. Large Commercial Customers shall be subject to section 2.7.3 and shall maintain a security deposit on file with City at all times during the term of service.

2.7 Security deposits.

2.7.1 A residential Customer shall be required to provide a cash security deposit in an amount equal to one and one-half (1.5) times the highest monthly bill incurred by the prior customer at the residence during the months of June through September, or one hundred fifty dollars ($150.00), whichever amount is greater.

2.7.1.1 Deposits will automatically be refunded after twelve (12) months of service, provided Customer has not been delinquent in the payment of bills or disconnected for nonpayment during the previous twelve (12) consecutive months, unless Customer has filed bankruptcy.

2.7.2 Nonresidential security deposits may be either cash or noncash, as described in 2.7.2.1, and shall be in the amount of two and one-half (2.5) times the previous Customer’s highest monthly bill (June through September) at the non-residential location where the new account is established.

2.7.2.1. All cash and noncash security deposits held for non residential customers, excluding Large Commercial Customers which are addressed in section 2.7.3 below, by City shall be reviewed upon Customer’s completion of twenty-four (24) months of service. Such deposits shall be refunded or released, provided that Customer has not been delinquent in the payment of bills or disconnected for nonpayment during the preceding twelve (12) consecutive months, unless Customer’s financial condition, as determined by City, warrants the continued retention of the security deposit. Deposits not refunded or released at the conclusion of the initial twenty-four (24) month period shall be reviewed annually thereafter to determine whether Customer qualifies for the return or release of the deposit.

2.7.3 Deposits for Large Commercial Customers may be provided in cash or noncash, in a form acceptable by City, and shall be in the amount of eighty thousand dollars ($80,000) for each twenty thousand (20,000) square feet of building space. Such deposits shall remain on file for a minimum period of three (3) years, after which they may be replaced with a security bond. All security bonds shall be subject to renewal, with satisfactory assurance of renewal provided to City. The cash or noncash security deposits for Large Commercial Customers shall be on file with City during the term of service.

2.7.4 City reserves the right to increase or decrease the security deposit amount when Customer’s average consumption changes by more than ten percent (10%) for residential accounts within the twelve (12) consecutive month period and five percent (5%) for nonresidential accounts within the twelve (12) consecutive month period. Separate security deposits may be required for each location.

2.7.5 Customer security deposits shall not preclude City from terminating an agreement for service or suspending service for any failure in the performance of Customer obligations under an agreement for service.

2.7.6 Cash deposits held by City shall not earn interest. Deposits on inactive accounts may be applied to the final bill and the balance, if any, will be refunded to Customer of record within sixty (60) days.

2.7.7 If Customer terminates service with City, the security deposit may be credited to Customer’s final bill.

2.7.8 In implementing the foregoing provisions, City shall not discriminate on the basis of race, color, religion (creed), gender, gender expression, age, national origin (ancestry), disability, marital status, sexual orientation, or military status, in any of its activities or operations.

2.8 Line extensions. Installations requiring City to extend its facilities in order to establish service will be made in accordance with City’s conditions governing extensions of electric distribution lines and services.

3. Rates.

3.1 Rate information. City shall provide a copy of the rate schedule to the Customer, when requested. In addition, City shall notify Customers of any change in rate schedules affecting those Customers.

3.2 Rate selection. Customer’s service characteristics and service requirements determine the selection of the applicable rate schedule. City will use reasonable care in initially establishing service to the Customer under the most advantageous rate schedule applicable to the Customer. However, because of varying Customer usage patterns and other reasons, City cannot guarantee that the most economic applicable rate will be applied. City will not make any refunds in any instances where it is determined that Customer would have paid less for service had Customer been billed on an alternate applicable rate or provision of a rate.

4. Billing and collection.

4.1 Customer service installation and billing. Service billing periods normally consists of approximately thirty (30) days unless designated otherwise under the rate schedules or at City option.

4.1.1 Customer service installations will normally be arranged to accept only one type of standard service at one point of delivery to enable service measurement through one meter. If Customer requires more than one type of service, or total service cannot be measured through one meter according to City’s normal practice, separate meters will be used and separate billing rendered for the service measured by each meter.

4.1.2 City shall ordinarily install a separate meter and issue a separate bill for each individual premise. However, adjacent and contiguous premises that are not separated by private or public property or right-of-way, and that are operated as a single, integrated unit under the same name and as part of the same business enterprise, shall be deemed a single premise for purposes of metering and billing.

4.1.3 When regular, accurate meter readings are not available or the electric usage has not been accurately measured, City may estimate Customer’s energy usage for billing purposes on the basis of information including, but not limited to, the physical condition of the metering equipment, available meter readings, records of historical use, and general characteristics of Customer’s load and operation.

4.1.4 In the event a meter error is discovered through a meter test, City may issue an adjusted bill to Customer for the amount of any undercharge and shall provide Customer with a refund or credit for the amount of any overcharge. Such adjustment bill shall be computed as follows:

4.1.4.1 Fast meter. If a meter is registering more than two percent (2%) fast, City shall refund to Customer the amount of the overcharge based on the corrected meter readings or the utility’s estimate of the energy usage either for the known period of the meter error or, if the period of error is not known, for the period during which the meter was in use, in either situation for a period not exceeding one (1) year.

4.1.4.2 Slow meter. If a meter for residential service is registering more than twenty-five percent (25%) slow, or a meter for any other class of service is registering more than two percent (2%) slow, City may bill Customer for the amount of the undercharge based on corrected meter readings or City’s estimate of the energy usage either for the known period of meter error or, if the period of the meter error is not known, for the period the meter was in use, in either situation the billing shall not exceed three (3) months for residential service and one (1) year for any other class of service.

4.1.4.3 Nonregistering meter. If a meter is found to be nonregistering, City may bill Customer for the amount of the underbillings based on City’s estimate of the electric service used but not registered, for a period not exceeding one year.

4.1.5 Adjustment of bills for billing error.

4.1.5.1 A billing error is an error by City which results in incorrect billing charges to Customer. Billing errors may include incorrect meter readings or clerical errors by a City representative such as applying the wrong rate, wrong billing factor or an incorrect calculation. Billing error does not include a meter error or unauthorized use, nor any error in billing resulting from the meter dial “pegging” or being over if caused by other than City, switched or mismarked meters by other than City, improper Customer wiring, blown fuse in one energized conductor, inaccessible meter, failure of Customer to notify City of changes in Customer’s equipment or operation, or failure of Customer to take advantage of a rate or condition of service which Customer is eligible.

4.1.5.2 Where City overcharges or undercharges a Customer as the result of a billing error, City may render an adjusted bill for the amount of the undercharge, and shall issue a refund or credit to Customer for the amount of the overcharge, for the period of the billing error, but not to exceed three (3) years in the case of an overcharge, and, in the case of an undercharge not to exceed three (3) months for residential service and one (1) year for any other class of service.

4.2 Collection policy. The following collection policy shall apply to all Customer accounts:

Any payment not received within this time frame shall be considered past due. Bills for which payment has not been received within ten (10) days of the past due date will be considered delinquent. All delinquent bills shall be subject to the provisions of City’s termination procedure. City reserves the right to suspend or terminate Customer’s service for:

(a) Nonpayment of delinquent service bills; (b) Nonpayment of service establishment charges; (c) Nonpayment of security deposits; (d) Nonpayment of meter test charges; (e) Nonpayment of returned check charges; (f) Nonpayment of late charges; (g) Nonpayment of collection charges; and/or (h) Declare past due service bill amounts, past due service establishment charges, past due security deposits, past due meter test charges, past due returned check charges, and past due collection charges subject to a late charge at the rate of eighteen percent (18%) per annum.

In the event that, after the deposit has been refunded to Customer, Customer receives two (2) late notices within a twelve (12) month period, a subsequent/new deposit will be required for continuation of service. City will provide Customer with written notice that a new deposit, in the amount equal to two (2) times Customer's highest monthly bill during the previous twelve (12) month period, is due. The amount of the new deposit due will be added to Customer's next utility bill. City will refund the deposit to Customer after City has received twelve (12) months of timely payments from Customer.

5. Service responsibility of City and Customer.

5.1 Responsibility -- Use of service or apparatus. City and Customer assume all responsibility on their respective sides of the point of delivery for the electric service supplied and received, as well as for any apparatus used in connection therewith.

5.1.1 Customer and City each shall save the other harmless from and against all claims for injury or damage to persons or property occasioned by or in any way resulting from the electric service or the use thereof on their respective sides of the point of delivery. City shall, however, have the right to suspend or terminate service in the event City should learn of service use by Customer under hazardous conditions or for illegal purposes.

5.1.2 Customer shall exercise all reasonable care to prevent loss or damage to City property installed on Customer’s premises for the purpose of supplying service to Customer.

5.1.3 Customer shall be responsible for payment of loss or damage to City property on Customer’s premises arising from neglect, carelessness or misuse, and shall reimburse City for the cost of necessary repairs or replacement.

5.1.4 Customer shall be responsible for payment for any equipment damage and/or estimated unmetered usage resulting from unauthorized breaking of seals, interfering, tampering or by-passing City’s meter.

5.1.5 Customer shall be responsible for notifying City of any failure in City’s equipment.

5.2 Service interruptions -- Limitations on liability of City. City shall not be liable to Customer for any damages occasioned by fluctuations, interruptions or curtailment of electric service except where caused by City’s willful misconduct or gross negligence. City may, without incurring any liability therefore, suspend Customer’s electric service for periods reasonably required to permit City to accomplish repairs to or changes in any of City’s facilities.

5.2.1 In the event of a national emergency or local disaster resulting in disruption of normal service, City may, in the public interest, interrupt service to other Customer 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.

5.3 City access to Customer premises. City’s authorized agents shall have safe access to Customer’s premise at all reasonable hours to install, inspect, read, repair or remove its meters; to install, operate or maintain other City property, and to inspect and determine the connected electrical load. Neglect or refusal on the part of the Customer to provide such access shall be sufficient cause for discontinuance of service by City, and assurance of access may be required before service is restored.

5.4 Easements. All suitable easements and rights-of-way required by City for any portion of the extension which is on premises owned, leased or otherwise controlled by Customer shall be furnished in City’s name by Customer without cost to City and in reasonable time to meet proposed service requirements. All easements and right-of-way obtained on behalf of City shall contain such terms and conditions as are acceptable to City. 5.5 Load characteristics. Customer shall exercise reasonable care to assure that the electrical characteristics of its load, such as unusual short interval fluctuations in demand, shall not be such as to result in impairment of service to other Customers or interference with operation of telephone, television or other communication facilities. The deviation from phase balance shall not be greater than ten percent (10%) at any time. The power factor of the load shall not be less than ninety percent (90%) lagging, but in no event leading, unless agreed to by City. In the event that Customer does not maintain such power factor, at the option of City, kva shall be substituted for kW in determining the applicable charge for billing purposes for each month in which such failure occurs.

6. Metering and metering equipment.

6.1 Customer equipment. Customer shall install and maintain all wiring and equipment beyond the point of delivery. Except for City’s meters and special equipment, Customer’s entire installation must conform to all applicable construction standards and safety codes, and if an inspection or permit is required by law or by City, the same must be furnished by Customer.

6.1.1 Customer shall provide in accordance with City’s current service standards, at no expense to City, and close to the point of delivery, a sufficient and suitable space acceptable to City’s representative for the installation of City’s metering equipment.

6.1.2 Customer shall provide and maintain a clear and unobstructed work space that extends a minimum radius of three feet from the face of the electrical entrance section, and a clear and unobstructed walkway to the meter location of a minimum width of three feet. The electric entrance section work space shall have a level floor surface and a height minimum of six feet six inches to any overhead obstruction.

6.1.3 Customer shall, at his/her own expense, relocate meter or meters to a new and approved location whenever the existing meter or meters become inaccessible or work space cannot be maintained.

6.2 Service connections. City will not install and maintain any lines and equipment on Customer’s side of the point of delivery except its meter. For the mutual protection of Customer and City, only authorized employees of City are permitted to make and energize the connection between City’s service wire and Customer’s service entrance conductors. Such employees carry credentials which they will show upon request.

6.3 Measuring Customer service. All the energy sold to the Customer will be measured by a commercially acceptable measuring device owned and maintained by the City, except where it is impractical to meter loads such as street lighting, security lighting, or special installations in which case the consumption may be calculated.

6.3.1 The readings of City’s meters will be conclusive as to the amount of electric power supplied to Customer unless, there is evidence of meter tampering or energy diversion, or unless a test reveals City’s meter is in error by more than plus or minus two percent (2%).

6.3.2 If there is evidence of meter tampering or energy diversion, Customer will be billed for the estimated energy consumption that would have been registered had all energy usage been properly metered.

6.3.3 If any meter after testing is found to be more than two percent in error, either fast or slow, proper correction shall be made of previous readings, and an adjusted bill shall be rendered per section 4.1.4. Customer will be billed for the estimated energy consumption that would have been registered had the meter been operating properly.

6.3.4 City shall, at the request of Customer, reread Customer’s meter within ten (10) working days after such request by Customer. The cost of such rereads, which is Ten Dollars ($10), may be charged to Customer, provided the original reading was not in error.

6.4 Meter testing.

6.4.1 City shall test its meters regularly in accordance with a meter testing and maintenance program.

6.4.2 City will individually test a meter upon Customer’s request. If meter is found to be within the two percent (2%) limit, City may charge Customer Twenty-Five Dollars ($25) for the cost of the meter test. The results of the test will be furnished to the Customer within a reasonable time after the test.

6.4.3 Customer shall have the right to observe any individual meter test he/she has requested, or to have present an expert or other representative appointed by him.

6.5 Master metering.

Customer shall not resell electricity from City to any person except:

(a) Where energy is purchased at rates specifically applicable to resale service, or

(b) Where the charge to the tenants is absorbed in the rental for the premises or space occupied, or

(c) Where Customer is owner, lessee or operator of a multi-family housing or similar facility, and submeters and resells electricity to tenants at the same rates and charges that City would charge for the service if supplied by it directly, or

(d) Qualifies for submeter resale under the criteria identified in section 6.5.4.

If a Customer is not satisfied with the investigation and/or action completed by the City’s utilities office, the Customer may elevate the inquiry or complaint to the next level within City staff, in the order recommended below:

(a) Utility Business Manager or Supervisor (b) Utility Manager (c) City Manager

A Customer who has requested an investigation or who is appealing a determination shall not have the electric service disconnected for nonpayment of the disputed bill. If the Customer is disputing multiple months of billing, payment for one of the months being disputed may be withheld pending determination, but all remaining months being disputed must be paid to avoid being disconnected for nonpayment. Customer must pay subsequent bills to a disputed bill, to avoid being disconnected for nonpayment.

9. Removal of facilities. Upon the termination of service, City may without liability for injury or damage, dismantle and remove its facilities installed for the purpose of supplying service to Customer and City shall be under no further obligation to serve Customer. If, however, City has not removed its facilities within one (1) year after termination of service, City shall thereafter give Customer thirty (30) days’ written notice before removing its facilities, or else waive any re-establishment charge within the next year for the same service to the same Customer at the same location.

For purpose of this section, notice to Customer shall be deemed given at the time such notice is deposited at the U.S. Postal Service, first class mail, postage prepaid, to Customer at his/her last known address.

10. Prohibited service uses. Customer shall not use electric service for the following uses or activities. These prohibitions are necessary to prevent electric shortages and to avoid supplier penalties for excess demand requirements.

A Customer may request a special use exemption for a prohibited activity. The request must be in writing and shall be submitted to the Utilities Board. The request must explain why the exemption is being sought, the benefits Customer will receive from such use, the approximate amount of energy required and the desired time period. Board approval must be received prior to Customer using service for a prohibited activity.

11. Curtailment. When the availability of service is restricted and a reduction of service is required to maintain the integrity of part or the total electric system, Customer will be notified by City to reduce or terminate use of service. Such notifications may be made by mail, phone, or in person. City will curtail service on a proportionate basis, where possible, and will give service priority to Customers and/or Customer classes where health, safety and welfare will be adversely affected, when possible. Customers, who refuse or do not comply with curtailment requirements, may be terminated by the City. A service re-establishment charge of Two Hundred Dollars ($200.00) will be assessed for a first-time violation, Five Hundred Dollars ($500.00) for second violation, and One Thousand Dollars ($1,000.00) for a third violation. A Customer who violates curtailment requirements more than three times will not be allowed to reestablish service.

12. Successors and assigns. Agreements for service shall be binding upon and for the benefit of the successors and assigns of Customer and City, but no assignments by Customer shall be effective until Customer’s assignee agrees in writing to be bound and until such assignment is accepted in writing by City.

13. Warranty. There are no understandings, agreements, representations or warranties, expressed or implied (including warranties regarding merchantability or fitness for a particular purpose), not specified herein concerning the sale and delivery of electricity by City to Customer. These terms and conditions state the entire obligation of City in connection with such sales and deliveries. (Ord. 404-AC; Ord. 463-AC.)

6C-1-1 Terms And Conditions For The Sale Of Electric Services