CUSTOMER RELATIONSHIPS PROCEDURE: CUSTOMER RELATIONSHIPS TITLE: CREATION DATE: February 1, 1981 CR 40400 MBC 302 Billing, Credit & Collections Credit & Collections REVISED: October 30, 2015 Policy Statement: JEA strives to provide our communities with the best available electric, natural gas and water services. This is achieved through the detailed management of our financial performance, Customer expectations, community responsibility and organizational effectiveness. To ensure operational excellence, JEA has created this document to make certain that the billing, credit, and collections decisions made by JEA, as they concern the business and our Customers, are accurate and consistent. ASSIGNMENT OF RESPONSIBILITY: The Director of Customer Revenue is responsible for creating, implementing and maintaining this procedure. Table of Contents: I. Definitions- pg. 2 II. General Information – pg. 5 a. Deposit Requirements b. Deposit Adjustments c. Returned Checks d. Billing, Payments & Collections e. Collection / Disconnection III. Residential – pg. 20 a. Account Type & Characteristics b. Deposits IV. Commercial – pg. 22 a. Account Type & Characteristics b. Deposits 1 Definitions Adult: A person who is 18 or more years of age. JEA will not establish or maintain active accounts for persons under the age of 18. Area Light Private dusk to dawn outdoor lighting used for illuminating yards, walkways etc. Beneficial User: A person at least 18 years of age that resides at the Customer’s address and benefits from the consumption of JEA services provided at the residence and may become financially responsible for the utilities consumed should the Customer not pay for the services provided by JEA. Billing Cycle (Monthly Bills): For credit purposes, the initial bill is considered to be the first monthly bill when a Customer’s account is opened with JEA. The next monthly bill is defined as the second monthly bill, and so forth. A billing cycle is the elapsed time between printings of a Customer’s monthly bills. Continuous Service (Residential) - Service that has been active for six (6) or more months without a break in service. Credit Score (Internal): A numerical value assigned to Customer accounts generated by an internal credit scoring model that is designed to track collection activities of Customer accounts by assigning a numerical (point) value with associated time value. The Internal Credit Score for a Customer account influences JEA deposit assessments. Customer: A person at least 18 years of age or business entity designated on the records of JEA as responsible for payment of charges incurred for JEA service at the Premise(s); a JEA account holder. Customer Information System Deposit Recommendation: A calculation that determines an account’s recommended deposit based on two times the average twelve months historical consumption at associated service agreement rates. Deposit Waiver: JEA may not require U.S. currency, Surety Bond, Commercial Bank Letter of Credit or other security instrument on an active account providing specific requirements are met. Dishonored Payment: Non-payment of a check or debit/credit card payment by the financial institution through which the payment was drawn. Established Customer: A person, sole proprietor, partnership, association or corporation that currently has or previously had an account with JEA. Estate: The aggregate of property in land or other possessions of a deceased person. The Executor of the Estate or Personal Representative is that person who manages the account on behalf of the estate. Field Action for Delinquency: Field notification or service disconnection resulting from non-payment, returned check, fraudulent, or unauthorized consumption of service. 2 Financially Responsible: A Person who is liable for a Customer’s account, including the Customer, Beneficial User, or other Persons who are liable in accordance with JEA policy, applicable laws, Florida statutes or court orders. Fraud: A misrepresentation made to JEA for the purpose of obtaining or maintaining utility service(s). General: Policy and Procedure that is not specific to Customer or account type, but pertains to the JEA Customer population as a whole. “In-Full” Account – The complete and full transfer of all account control and responsibility from one person or entity to another. Infraction: Refers to dishonored funds, disconnections, write-offs, bankruptcy, and late payments. Landlord Agreement: An agreement between JEA and certain commercial Customers that is binding upon both parties, and allows JEA utility services to remain “on” and active during the time period between tenant occupancies of the landlord’s rental facilities. Under the agreement, utility services automatically revert to the landlord’s JEA account when tenants stop services with JEA. When the next tenant starts service with JEA the service is automatically removed from the landlord’s JEA account and is placed on the new tenant’s account. Landlords may utilize the JEA utility services at the rental property between tenants without a separate JEA service request or start service fees. JEA invoice amounts resulting from utility consumption occurring between active tenant accounts appears on the landlord’s JEA bill, and is the responsibility of the landlord. Landlord Agreements benefit landlords and JEA by providing an efficient way to administer numerous utility starts and stop services. Participation in the Landlord Agreement Program is limited to Customers who have an active Landlord Agreement on file with JEA and also meet certain other criteria as described in the Landlord Agreement document. Late Payment Charge: A 1.5% monthly charge assessed to the past due amount on an active account Medical Essential (Life Support): Designation placed on a premise after a Customer provides certification by a licensed medical physician that there is medical equipment that requires electricity. This designation requires recertification on a bi-annual basis. New Customer: Is the person, partnership, association, or corporation entering into a relationship with JEA for the first time. Non-Residential Account: A Commercial Account (i.e. schools, apartment complexes, businesses, government agencies, etc.) that purchase utility services from JEA. Payment Arrangement: Long-term (3-6 months) agreements on the full balance owed on an account. Payment Plan: Short-term payment extensions. Gives a Customer a few extra days to make a payment and avoid interruption of service. Premise: The integral property or area, including improvements thereon, to which utility service is, or is to be provided. 3 Residential Account: Individuals who own a small quantity of residential premises, rental properties (less than ten (10) premises) and have all of the services on one consolidated bill along with their personal residence can be considered to be Residential. Service Agreement (SA): A contract between a Customer and JEA for a defined service(s) rendered and billed by JEA such as Electric, Water, Sewer, Irrigation, Natural Gas, Chilled Water; retail or wholesale agreements, etc. Service Connection: The device that distributes a commodity to the service point (e.g. transformer, water main). Service Point: The actual point of service (e.g. meter socket, tap). Service Disconnection: Disconnection of utility services at the service connection. Standard Deposit (minimum deposit) – The smallest deposit required to enact a Service Agreement. They are as follows: $200.00 for electric, $100.00 for water and sewer, $50.00 for irrigation, $75.00 for sewer only, and $50.00 for water only. (Minimum deposit charged can NEVER be lower than the standard deposit amount) Two Times the Consumption: Two times the average usage at the premise based on historic consumption, typically the last twelve (12) months or estimated usage for new premises. If the two times consumption deposit is less than the standard deposit, the standard deposit should be charged. Write off: Unpaid debt remaining on an account that has been closed 180 days or longer. 4 General Information Applying for New Service As a utility, JEA has a responsibility to adopt rules and regulations governing its relations with Customers consistent with the Laws of the State of Florida and the rules and regulations of the Florida Public Service Commission. Utility service is rendered to a JEA Customer on a credit arrangement, meaning customers are billed for JEA services after consumption. As a result, credit must be established by every applicant. Deposit Requirements The Customer may be required to post a deposit for each applicable service agreement (SA). The deposit will be determined by the customer’s Telecommunications, Energy and Cable (TEC) risk score. The Customer must provide full and legitimate identity information, including Social Security Number, to facilitate the credit checks. For utility service to be activated all required deposits must be paid in full. In lieu of a cash deposit, other means of payment may be accepted at the discretion of JEA. The Customer will be paid interest at the current rate on the deposit on the deposit anniversary date. The dividends will be calculated annually on the anniversary date in accordance with the date the cash deposit posted and will appear as an adjustment to the deposit balance. When service is severed or discontinued, the deposit and any unpaid dividends will be applied to the final bill and, if applicable, a refund check will be issued within five (5) weeks. Cash Deposit Interest Rate Determination (Effective 09/17/2015) The interest rate paid on customer’s cash deposit will be based upon the twelve (12) month Treasury Bill Yield. The most current published twelve (12) month T-Bill interest rate will be reviewed by JEA at the beginning of each fiscal year and at mid-year (October 1 & April 1) with the practice of changing the interest rate to be posted to customer accounts on each October 1 [or within the following ten (10) business days]. The interest rate applied to customer deposits will change at mid-year only if the current rate differs by more than fifty (50) basis points than the current rate being paid to JEA customers based on the preceding October 1 rate. Note: in JEA’s billing system the deposit interest is calculated by taking the current coded rate against the deposit’s average daily balance and applied as a credit to the customer deposit SA. It is not actually paid out on the proceeding monthly bill. Interest on cash deposits will be posted to the account once a year. Once the account is closed, remaining interest will be applied to the final bill. Adding Additional Service Points Adding additional services or transferring to a new address may result in the assessment of an additional deposit. Reactivating service 5 Customers returning to JEA after 12 months will require a deposit assessment and may be required to post a deposit for each applicable service agreement (SA) based on the customer’s Telecommunications, Energy and Cable (TEC) risk score. For Customers returning within 12 months, if no balance exists and no fraudulent activity is present, the Customer’s service can be reactivated at the new premise and the deposit requirement will be the same as that which was applied to the previous account (same criteria applies with a transfer of responsibility). Deposit Adjustments JEA may review and rescind any established deposit waiver and/or may adjust the deposit requirement to a minimum amount equal to two (2) months’ average billed consumption at the current applicable rate, with no maximum amount, if the account exhibits indicators that show risk to JEA has increased: Accounts have incurred more than one (1) dishonored payment from a financial institution within a given nine (9) month period. Accounts by Customer & debt class combinations incur credit demerits / infractions. Non-Residential Customers fail to meet the terms and conditions of an existing Deposit Waiver Agreement. Fraudulent or tampering activity is found to have occurred. Accounts with a JEA internal credit score of 800 or less are subject to deposit review. Upon deposit review, required account deposits may be adjusted if consumption increases more than 25% of the measure of two (2) times the average billed consumption during the previous twelve (12) billing periods with a minimum increase of at least $75.00. JEA will provide a deposit warning notice after the first credit infraction. Upon the second credit infraction occurring within the stipulated time frame, a deposit adjustment will appear on the subsequent Customer bill, containing the amount of the required deposit increase and the necessary steps to be taken to avoid service disconnection. The Customer must pay the deposit increase in accordance with the due date of the monthly bill in which it appears, after which any unpaid balance will become a past due amount and subject to all credit and collections policies and procedures. The Customer has the right to challenge an automated deposit adjustment if they provide appropriate information that justifies why they believe the deposit increase is an error, such as a valid billing discrepancy being reviewed by JEA staff or proof of operational changes resulting in significantly less utility services. Customers have ninety (90) days from the bill date shown on the bill to challenge the deposit adjustment. Every twelve (12) monthly bills of continuous service, a Customer may request that JEA reevaluate the account’s deposit requirement, based on the account’s billed history and, if applicable, lower the required deposit amount if there is more than a 25% and $75.00 difference between the deposit amount required by JEA policy and the Customer’s actual deposit amount on hand. 6 Internal Credit Score Demerit Table: When each JEA account is originated, it is assigned an internal credit score of 1000. The following table lists potential credit infractions and their corresponding credit score demerits: Infraction First Returned Check (one (1)cash only point) Initial dishonored payment from a financial institution with exception of initial deposit or first payment. The point deduction will be restored nine (9) months after the date of the infraction occurrence. Second Returned Check in 9 months – (two (2) cash only points) Additional dishonored payments from a financial institution with the exception of initial deposit or first payment. The point deduction will be restored nine (9) months after the date of the infraction occurrence. Returned Check on Deposit or Initial Payment (three (3) cash only points) A dishonored payment from a financial institution for initial deposit or first payment (whichever comes first). The point deduction will be restored nine (9) months after the date of the infraction occurrence. Non-Residential Late Payment Disconnection for Non-payment – An account’s service disconnection for Non-Payment. The point deduction will be restored twenty-four (24) months after the date of the infraction occurrence. Tampering - If it has been determined that a Customer has tampered with a service point, the Customer will receive an infraction of 250 points. The point deduction will be restored thirty-six (36) months after the date of the infraction occurrence. Fraud- If it has been determined that a Customer has committed theft or fraud on a JEA account the Customer will receive an infraction of 750 points. The point deduction will be restored thirty-six (36) months after the date of the infraction occurrence. Write-off of Uncollected Customer Debt – An inactive account defined as a write off account or an inactive account adjusted to the Allowance for Doubtful Account (ADA) on the General Ledger. The point deduction Internal Credit Reduction -100 Duration of Infraction 9 months -200 9 months -300 9 months -50 12 months -100 24 Months -250 3 years -750 3 years -750 7 years 7 will expire eighty-four (84) months after the date of the infraction occurrence. Payments Payment Delivery & Processing A bill is considered paid when the amount of the payment is posted to the Customer’s account. Payment is required in US currency. In the event foreign currency is processed, the Customer’s account will be adjusted for the currency conversion and any associated fees. A payment is considered to be on time if the total amount of the bill is received and posted to the Customer’s account by the bill due date. Late Payment Charge This charge may not be contested through JEA’s Impartial Hearing process. Each account can receive no more than one monthly late payment courtesy adjustment of up to $15 per twelve (12) month period with approval of a JEA Customer Care Consultant. A JEA Manager may approve further adjustments when a discrepancy or other noted justification has been identified and documented in a Customer Contact within the billing system. Dishonored Payments If a check received for payment of a bill or services is returned to JEA after being dishonored by the financial institution, the Customer’s account will be charged the amount of the returned check plus an administrative service charge. The administrative service charge will be canceled upon receiving letterhead documentation from the Customer’s financial institution that a dishonored check was due to the financial institution’s error. JEA may sever service for a returned check(s). Returned checks and service charges associated with the returned checks are not subject to being contested under the Impartial Hearing process. Customer will be required to make all payments for any JEA account in cash or certified funds for a minimum of nine (9) months if: The Customer pays the initial deposit with a check returned as being dishonored by the financial institution. The Customer pays the first payment with a check returned as being dishonored by the financial institution. Two (2) checks are returned dishonored by the financial institution in any nine (9) month period. A check is returned as being dishonored and fraud is confirmed. Dishonored payments on payment arrangements will expedite the disconnection of service. 8 Payment Arrangements / Payment Plans Payment Arrangements Terms and conditions of a payment arrangement will be based on the following eligibility requirements: Customer Class must be either Residential, Commercial or Life Support No Tampering/Fraud activity (Permissible override by Management only) No Bankruptcy Dismissal in the last 90 days No Active Payment Plan No Broken Payment Plan in the last 6 months No Active Payment Arrangement with the exception of a Deposit Increase No more than 1 Broken Payment Arrangement in the last 365 days Account must be active for 180 days In the event of Theft /Fraud, a minimum of 50% of the amount owed must be paid before a payment arrangement is granted. The term of the payment arrangement will be a maximum of three (3) months. Exceptions may be granted at management discretion. Payment Plans Terms and conditions of a payment plan will be based on the eligibility requirements: The terms and conditions are to match the Validation Criteria on the Pay Plan Validator (PPV). Customer Class must be either Residential, Commercial or Life Support Commodity SA Length: Must have been a Customer for at least 3 months Active Commodity SA Service is not currently disconnected Extension due date must be within 51 days of bill date No debt older than 51 days at time of payment plan request (exception if the debt is less than $25) No Tampering/Fraud activity (Override permissible by Management only) No more than one (1) NSF check in the last 90 days No Bankruptcy Dismissal in the last 90 days No Active Payment Plan No Broken Payment Plan in the last 60 days (exception if the broken pay plan resulted from a broken customer assistance voucher) No Active Payment Arrangement No Broken Payment Arrangement in the last 180 days (6 months) Pay arrangements and pay plans are prohibited on final billing. Billing 9 JEA bond covenants prohibit JEA from extending free service to any customer. Accordingly, JEA is required to sever services for non-payment of fees, rates, or other service charges to the full extent permitted or authorized by Florida law. No fees or service charges may be waived except for the following: JEA Error Bank Error (documented on bank letterhead) One (1) late fee up to $15 per twelve (12) month period as a courtesy One (1) NSF fee within a rolling twenty- four (24) month period due to a non-valid electronic payment return. Initial Bill A customer’s initial bill will be for service rendered from the service connection date to the next date JEA prepares bills for the customer’s assigned billing cycle. The number of days captured by the initial bill may be less or exceed the standard 25-35 days. A connection fee shall be charged on the initial bill for each new service agreement (SA), if applicable. The connection charge will be assessed per the rates and tariffs schedule. Start Service and Stop Service Backdate Requests JEA will approve backdate start service and backdate stop service requests for on or after the date of the last bill for all accounts not included in active Landlord Agreements. Backdate start service and backdate stop service requests for start or stop dates prior to the date of the last bill issued will be approved only for the purpose of correcting JEA-caused error(s). JEA will not backdate service start dates or service stop dates for accounts included in active Landlord Agreements, except in the case of, and for the purpose of correcting, JEA-caused error(s). Billing Cycle Change Requests Changes to the billing cycle and corresponding payment due date may be granted to mitigate the risk of unnecessary late payment charges for customers receiving monthly income such as Social Security, AFDC, etc. Inaccurate Billing Corrective action to remediate billing errors, including but not limited to adjustments, refunds, credits, debits, rebates and/or assessments will be standardized to and calculated upon the current bill and stipulated time frame associated with the specific billing error. Based upon the facts or circumstances discovered through research and account history, JEA may elect to increase or decrease the standard billing period calculation to finalize the billing error correction. Unbilled Utility Consumption The standard practice to remedy an under-billed account is to bill the current month, plus the three (3) prior billing periods for both Residential and Commercial Customers. JEA may increase the back10 billing period in the event direct communication has been made by a JEA representative, the Customer agrees to the longer period back billing, and the agreement by the Customer is noted in the Customer Contact for the account. JEA may back-bill a Customer for unbilled utility consumption in the following instances: To correct inaccurate billing(s) as a result of JEA error, such as oversight, JEA-owned meter malfunctions, crossed meters, and/or other incorrect billing criteria. If actual consumption information is not available, JEA will prorate the back-bill using the first valid month of consumption. The Customer will be granted up to the same number of months used in calculating the back-bill to pay the balance of the assessed back-billed amount or may be extended to a more favorable time frame with JEA management approval. To correct inaccurate bill(s) resulting from malfunctions as a result of meter tampering or bypassing, or Customer-inflicted damage to the service point, unauthorized or fraudulent use of service or service diversion. Under such circumstances, back-billing will occur from the time the malfunction was detected back to the event causing the malfunction without limitation of time. Over-Billing Errors Where an over-billing error has been detected due to a result of a JEA error, such as JEA-owned meter malfunctions, crossed meters, or other incorrect billing(s) generated by JEA, Customers’ accounts will be credited or a check will be issued for the over-billed amount for affected accounts. As a standard practice, JEA will not refund more than twelve (12) billing periods without JEA Manager approval. Even under extreme circumstances JEA will not refund beyond the legally defined timeframe as stated as the “statute of limitations” (four (4) years with a verbal agreement and five (5) years with a written agreement). If JEA discovers that a new Customer was over-billed due to an inaccurate reading recorded as the initial reading, the new Customer’s account shall be adjusted. However, JEA’s general practice is not to adjust upward to the correct reading for the final billing of the previous Customer once the final bill has been issued. Meter Errors Meters furnished by JEA shall be accurate at the time of installation. JEA will endeavor to keep these meters accurate at all times and will replace a meter which, after testing, is found to be registering either faster or slower than 2% of 100% accuracy. Meters shall be deemed accurate when tested and found to be registering within 2% of 100% accuracy. JEA shall have the right to test meters to determine accuracy whenever it deems this action advisable. Upon request, JEA will test a Customer's meter for accuracy. If the meter does not test within JEA acceptable accuracy range of + or - 2%, JEA will bear the full cost of the test. If the electric meter tests within JEA-acceptable accuracy range, and the request is unrelated to a high bill investigation, the Customer will be required to share in the cost of the testing according to the rates and tariff schedule. 11 The Customer shall have the right to be present when the test is made. The Customer for water service for whom the meter was tested by JEA will receive a credit for overbilled charges. In accordance with Florida Statute 25-30.340(Adjustment of Bills for Meter Error), JEA shall refund to the Customer the amount billed in error for one half the period from the time the meter was last tested not to exceed twelve (12) months except that if it can be shown that the error was due to some cause, the date of which can be fixed, the overcharge shall be computed back to but not beyond such date, based upon available records. The refund shall not include any part of the minimum charge. Research Hold JEA may place a research hold on part or all of the balance on an account to provide sufficient time for JEA to review the records for discrepancy and/or to take other actions as appropriate, such as receive payments, initiate adjustments, issuing follow-up letters, etc. when applicable. Examples of circumstances wherein JEA may utilize research holds include: meter tests, bill inquiries, rereads, hearings, transfer bills, emergency situations, pending agency payments, misapplied payments, etc. Contested Bills If a contested bill is not resolved to the Customer’s satisfaction and is deemed contestable, the Customer may request a hearing before a Hearing Examiner. The Customer must notify JEA regarding the bill or service charge being contested within ninety (90) days of the bill date. Prior to any impartial hearing, the Customer and JEA must make a good faith effort to reconcile the disputed bill. A hearing may be requested by telephone, written notice or personal visit to any JEA business office. Once a hearing has been assessed and scheduled, the contested amount will be placed on an extended payment arrangement for ninety (90) days or until the dispute is resolved. A research hold may be applied in lieu of an extended payment at management discretion. All bills rendered during this process must be paid by the bill due date. Final Bills Upon service disconnection and prior to the final bill, any cash deposits and deposit dividends are to be applied to any outstanding bills and charges. JEA will not require a final bill to be paid if the amount owed by the Customer is $1.00 or less. JEA will not refund a final bill credit balance to the Customer if the amount is $3.00 or less, unless requested by the Customer. At JEA’s discretion, the final bill credit dollar limits above may be adjusted (changes are typically prompted by changes in bill processing costs). Any unpaid balance from a service agreement (SA) which has been final billed may be moved to any other active accounts existing for the same Customer. Such charges shall become due and payable under the terms and conditions of the Customer’s active account and are subject to credit and collections policies and procedures governing that specific account and all active accounts. Collections / Service Disconnection Collection Accounts Subject to Disconnection An account is subject to disconnection if: 12 A bill is rendered with a past due balance and is not satisfied by the payment due date listed on the bill. There are dishonored payments. The initial deposit or first payment is dishonored by the financial institution. A Payment Arrangement or Payment Plan is not paid by the date due date. Unpaid Payment Arrangements and Payment Plans may be severed without notice. Delinquent Accounts Additional notice may be given on specific accounts, such as: Commercial: o Government offices. o Hotels, Motels and master-metered premise, offices and multiple occupant premises. The tenant will be hand delivered a written notice five (5) calendar days in advance of disconnection. o Industrial or Large accounts. o Medical or Emergency facilities Residential: o A Medical Essential (Life support) designation is on file with JEA Withholding or Disconnecting Service JEA may withhold or disconnect service for any of the following reasons: Repairs. Unpaid Debt associated with the Beneficial Use of Service Depletion of resources necessary to furnish service. Force Majeure including but not limited to, riots, strikes, lockouts, insurrections, acts of federal, state, municipal or other authorities, acts of God, acts of war, terrorism, acts of the public enemy, and all other acts beyond the control of JEA. An account having a past due amount. The general practice will be to sever service(s) of account(s) having a past due amount including late payment charge. An act of fraud. Unauthorized service consumption (no service request or service reconnected after disconnection without JEA authorization). Violation of Florida Statute §812.14 (Trespass and Larceny with Relation to Utilities) and/or §812.014 (Theft). Non-compliance with municipal, state or federal law. Customer intentionally or unintentionally inhibits or fails to grant JEA access to a service point. Service may be severed at the service connection without further notification. Charges in addition to the normal reconnection charges may be required for reconnection of the service, and are not contestable. Violation of any of JEA’s Rules and Regulations. Any of the following conditions related to account payments: 13 o Dishonored payments are rendered for the initial deposit or first payment. o Failure to honor a Payment Arrangement/Pay Plan. Scheduling and performance of disconnections shall occur with consideration of factors such as weather and holidays. Financially Responsible Customer or Beneficial User Beneficial Use of Service: The Utility may refuse or discontinue service for failure to settle, in full, all prior indebtedness incurred by any Customer(s) or Beneficial User at any one or more Premises of such Customer(s) or Beneficial User. The Utility may establish that a Customer or Beneficial User previously resided at a Premise through the use of mortgage, deed or lease information or commercially available consumer credit reporting service or other methods for the purpose of determining the customer’s liability for any outstanding balance. The Utility may assign all indebtedness incurred by any Customer or Beneficial User of the service at any one or more Premises of such Customer or Beneficial User of the service to the Customer or Beneficial User of the service. The Utility may require the payment of an outstanding balance or portion of an outstanding balance if the Customer or Beneficial User of the service resided at the property for which service is requested during the time the outstanding balance accrued and for the time the applicant resided there, not exceeding 4 years from the date of the debt occurred. Customer Information and Billing System Refund Guidelines Refunds may be issued by JEA if: Wrong payee was misapplied to an account. Credit balance from an overpayment by cash, not credit card. Unauthorized payment was applied to an account. Overpayment by check can be refunded after ten (10) working days with valid documented research (ensures that the payment has cleared JEA’s bank). Cash deposits will be refunded when the customer meets the following conditions: Maintains service and a positive payment history for 24 months; and Have an internal credit score of 1000 or Have closed their account(s) with no outstanding balance(s). When a cash payment is refunded, the CCC must confirm that: Payment belongs to the requestor. Overpayment was not originated by a charitable agency. Payment is not related to a credit card transaction. Payment has been posted for ten (10) working days with valid documented research (ensures that the payment has cleared JEA’s bank). 14 Revenue Assurance Collection Activities Unauthorized Reconnection of Disconnected Services JEA may sever all utility services without notice at a premise where the service point or service connection has been restored without JEA authorization. In each instance, an evaluation is made to determine the amount due JEA for services used, the number of times the Customer has tampered with the service, and any other related available information. Where appropriate, a warrant is issued through the State Attorney’s Office of the Fourth Judicial Circuit Court of Florida. Subsequent prosecution will be handled through the State Attorney’s office. Acts of Fraud or Unauthorized Use of Service Evidence of Fraud includes but is not limited to the following activities: Unauthorized receipt of utility services by theft, diversion, tampering or unauthorized connection; Using service without having contracted with JEA to do so and refusing to establish service in a Financially Responsible Party’s name; Making an application for service using fictitious information; Making an application in the name of another member of the family or household or other occupant or other individual which assists in avoiding payment or avoiding a prior outstanding debt to JEA; Obtaining a utility service connection without paying JEA all monies due by the Customer; JEA may decline to furnish service to a Customer or to a Premise if it is determined that prior service was delivered to that Customer or at that Premise as a result of an act of Fraud or Unauthorized Use of Service. Expedited Service Disconnection Expedited disconnection activities may start when payment is not received by the due date. JEA will make every effort to provide the Customer, account agent or occupant notification of impending disconnection. Advance notification is provided via one of the following communication methods: Mailed disconnection warning notice, Email, Telephone call, or Message on the monthly bill statement. Forty-eight (48) hour notice is provided for all collection events with the exception of broken payment arrangements, broken pay plans, instances of theft or unauthorized use of service. Payment arrangements or pay plans that are not paid by the due date will result in the disconnection of service. Any dishonored payment made toward a payment arrangement will result in the disconnection of service. 15 Special Order Disconnections Services that cannot be disconnected at the service point will be disconnected at the service connection, such as the weather head, pole or tap connection. Field Notification in Lieu of Service Disconnection At the discretion of field personnel, accounts may receive an additional notice of impending service disconnection. A charge of $5.00 will be assessed for the field notification. This action does not prevent the account from receiving a credit score demerit or infraction. Credit Bureau Notification Delinquent or “in bankruptcy” accounts may be reported to the credit bureau after the final bill is rendered. If the Customer satisfies the final bill balance in full within 60 days; the balance will not be reported to the credit bureau. If the Customer pays a written-off balance in full; the Customer Information System will automatically update the credit bureau with a PIF (paid in full) status the following month. NOTE: These day ranges only apply to Customers that ordered their service off and did not pay their final bill. Customer accounts that were classified as M-Cut expired, and payment for the final bill was not received will be sent to the collection agency, reported to the credit bureau, and receive an internal credit score deduction 30 days after the final bill. Collection Agencies / Office of General Counsel, City of Jacksonville JEA reserves the right to maintain service contracts with collection agencies. JEA also reserves the right to work through the Office of the General Counsel, City of Jacksonville, or designated collection or legal specialty agencies for collection of unpaid amounts thirty (30) days after the final bill is rendered. Reconnection after Service Disconnection Dishonored Payment: The Customer must satisfy any past due amount with payment by cash or certified funds. If the disconnection is due to a second returned check in a nine (9) month period, the Customer will be required to make all payments for services by cash or certified funds for a minimum of nine (9) months. Proof of Tenancy: When an unpaid balance exists after services are disconnected, and a Customer requests new service, proof that the Customer did not benefit from the use of service may be required. Should it be determined the unpaid balance is owed by the Customer, it will be assigned to the Customer’s new account, and be subject to credit and collections policies and procedures. 16 Landlord Agreements and Service Reconnection JEA will reconnect service at a premise that has been disconnected for non-payment if the Landlord or acting agent requests that the service be reconnected in the name of the Landlord. JEA may request written assurance that the previous tenant(s) who left unpaid bills or other adults who resided and benefitted from the unpaid service, no longer live in any premises owned by the landlord. Accounts in the Name of Deceased Persons An estate exists for the Deceased Person The estate has been established in the deceased account holder’s name with a reference to “Executor of the Estate or Personal Representative”. Acting agents may be an attorney, family member or relative. Non-family members or non-relatives may also act on behalf of the deceased account holder as ruled by the court. These accounts may continue to exist with the additional verbiage “Estate of” deceased account holder name along with the name of “Executor of the Estate” or “Personal Representative” represented on the account. Estate does not exist for the Deceased Person, but a Spouse, individual or entity will assume responsibility for the outstanding account balance The responsible party may place the account in their name or transfer the balance to another account, thereby assuming responsibility for the account balance. Estate does not exist for the Deceased Person and no party is willing to assume responsibility for the account balance The account will be closed immediately and a final bill will generate. Any deposits will be applied to the account balance to settle the account. Any beneficial user of the service may be required to pay the outstanding balance prior to activating service in their name. JEA determines that the account holder is deceased A letter will be mailed to the address on file, stipulating a formal service request is required in order for utility services to be provided by JEA at the address. Account Name Changes Same Person A residential Customer may request a name change on an account by providing proper legal documentation supporting the name change, as defined by JEA. A deposit adjustment may or may not be required. 17 Impartial Hearings Hearing Requests A Customer may request an impartial hearing to resolve certain billing differences with JEA. The billing charges that may be challenged through impartial hearing procedures are as follows: Billing amount for electric or water service Service charges for meter inaccessibility Service charges for tampering with JEA equipment Service charges for damages to meter devices The Customer must notify our Customer business office of the bill or service charges being disputed within ninety (90) days of the billing date. Prior to any impartial hearing, the Customer must make a good faith attempt to reconcile the disputed bill with JEA. Once a Customer has requested an impartial hearing, the impartial hearing information will be prescreened to determine validity. The Customer may be contacted for additional information and/or offered a solution to avoid the impartial hearing or provided an explanation for denial of an impartial hearing. Once the prescreen phase has determined the hearing request is valid, the hearing request will be scheduled. JEA will contact the Customer a minimum of seven (7) calendar days prior to the scheduled date to communicate the scheduled date, time and location of the hearing. Prior to the scheduled date of the hearing, the Customer is required to confirm with JEA their planned attendance at the hearing date or request the hearing be rescheduled. If the Customer fails to confirm or reschedule the hearing in advance, JEA will cancel the extended payment arrangement and allow JEA’s collection processes to become active on the contested amount. The Customer will be granted a maximum of one (1) hearing reschedule without JEA manager approval. Hearing Examiner The Hearing Examiner will be familiar with policies and procedures of JEA and other laws, rules and regulations of State and Federal Agencies. The Hearing Examiner shall not be bound by common law or statutory rules of evidence or by technical or formal rules of procedure but may conduct the hearing in such a manner as to ascertain the substantial rights of the parties. Location of Hearing The hearing will normally be held in the JEA Customer Center located at 21 West Church Street, Jacksonville, Florida. Rights The Customer and JEA shall have the following rights as part of an impartial hearing: The Customer has the right to appear in person, conference by telephone or to be represented by a person of choice. Both JEA and the Customer have the right to present oral or written evidence, confronting and cross examining any person giving testimony, and presenting oral arguments. Both JEA and the Customer have the right to examine all documents, records, files, account data and similar material available and in possession of either JEA or Customer which is relevant to the issues raised at the hearing. 18 The hearings are scheduled for twenty (20) minutes. Either party requiring longer than twenty (20) minutes shall request additional time and state the additional time required with approval of the other party in advance of the hearing. Burden of Proof The burden of proof shall be upon JEA. The burden of proof shall be defined as: Verified readings. Meter accuracy. Valid billing procedure. Proper rate assignment. Mortgage deed, lease agreement or commercially available Customer credit reporting service Affidavit from Property Management Firms Compliance with policy and procedures. Record Any person who anticipates an appeal of a decision made by the Hearing Examiner with respect to any matter considered at the hearing or who appeals such decision will need a record of the proceedings, and for such purpose of appeal may need to ensure that a verbatim record of the proceedings is made. This will need to include the testimony and evidence upon which the appeal is to be based. A record, either stenographic or by mechanical recorder, shall be taken of the hearing and retained by the Hearing Examiner for at least forty-five (45) calendar days from the hearing date. The cost of transcription of the proceedings of the Hearing Examiner shall be the responsibility of the person requesting the transcription. Results Within ten (10) business days after a hearing, the Hearing Examiner shall issue a decision determining: If the contested amount is due and payable upon receipt of the Hearing Examiner’s decision or if payment arrangements have been granted. The adjustment to the Customer's account. The Hearing Examiner is authorized to settle disputes, which reduce revenues of JEA in an amount not to exceed $5,000.00. For amounts in excess of $5,000.00 the Examiner's decision will be in the form of a recommendation to the JEA Board. Implementation of this decision will be contingent on the approval of JEA. If revenues are reduced, the 1.5% late payment charge will be adjusted accordingly. Decisions of the Hearing Examiner shall be implemented when rendered including decisions to grant payment arrangements due to emergency situations. Such decisions shall be in writing stating the specific findings of facts and reasons for the decisions based solely on the legal rules and evidence obtained at the hearing. A copy of the decision will be delivered in person or will be mailed to the Customer. If the Hearing Examiner requires additional information, he may direct that an extended payment arrangement be granted until the additional information is furnished. Additional Information Nothing in these regulations shall prevent either party from pursuing appropriate legal and equitable remedies. Failure by the Customer to appear at the scheduled hearing will be considered in default and therefore voids this process. The bill is rendered due and payable by the proceeding bill due date. The service agreement(s) is then subject to severance without further notice. Manager approval will be required to reschedule another impartial hearing for a Customer after a default order has been issued on a prior scheduled hearing. 19 Residential Accounts Account Type An account assigned to JEA Residential Service (RES) Customer class as defined in JEA Electric Rate Tariff Schedule and similarly classified in the JEA Water Rate Tariff Schedule. Individuals who own a small quantity of residential premises, rental properties (less than ten (10) premises) and have all of the services on one consolidated bill along with their personal residence can be considered as Residential for this policy only if the credit related personal information fields are fully completed on the application. Characteristics of a Residential Account Customer and Credit Classifications in the Customer Information/Billing System Customer Class LIFESUPP RES Description Life Support Residential Collection Class LIFESUPP RES Deposits Deposits are assessed based on property consumption history, and internal and external credit scores. (i.e. Experian’s Telephone, Energy and Communications (TEC) Score) A deposit requirement may be waived based on current JEA policy: A new residential Customer who seeks to have their deposit waived when establishing new service(s) may grant JEA permission to use an external credit rating score to define the initial deposit requirement. The external credit rating (Experian TEC score) must meet or exceed JEA criteria; or An established Customer who has met and maintained the requirements of a low financial risk to JEA. In lieu of a cash deposit for a new residential Customer, JEA, based on current JEA policy may accept a noncash deposit (voucher) from the Navy Federal Credit Union (NFCU) for deposit coverage on the account up to a maximum of $300.00. Should the required deposit be in excess of the voucher amount ($300), the Customer is responsible for the difference. Requests for service(s) from an established Customer who seeks to reactivate an account with an unpaid past due balance of greater than $25.00 from previous service(s), shall be denied unless the Customer agrees to pay any unpaid balances at the time of the request and pays a deposit amount of the greater of 1) two (2) times the average monthly consumption at the current premise based on historic consumption (typically over the last twelve (12) months) or estimated usage for the new premises, or 2) the minimum deposit amount. JEA may allow the Customer to make a payment arrangement on an unpaid balance; however the absolute minimum payment amount equal to the initial deposit amount + 1/2 of the previous unpaid balance must be paid 20 prior to start of service. Any unpaid charges still present at the time of account activation will become part of that account and subject to credit and collection policies and procedures governing active accounts. Deposit Increase At JEA’s discretion, deposits may be increased even if the variance is less than 25% of two (2) times the average billed consumption or $75.00. Bankruptcy Residential Customers engaged in bankruptcy proceedings shall post a deposit at minimum two times an average monthly consumption to provide JEA reasonable assurance of future payments for services delivered. In addition, it is presumed that any Customer that is undergoing bankruptcy hearings will cure all pre-petition executory agreement, provide full two months deposit coverage post-petition, and maintain all post- petition payments current in order to prevent expedited service disconnection. (In accordance with Bankruptcy Court document which is handled by Receivables and Collection Services). Deposit Return Criteria A residential account that has continuous service with JEA for a minimum of twenty-four (24) months in the Customer Information/Billing System which prompts disconnection & the deposit review process. These accounts must have a JEA internal credit score equal to 1000 in order to receive a deposit return. This criterion does not apply to Commercial Accounts. Residential Short Term General Service Agreement A short-term general service agreement may be granted for fifteen (15) calendar days or less. A short term general service agreement of thirty calendar days may be granted due to extenuating circumstances, however a minimum deposit of $60.00 for each general service agreement is required to be paid prior to granting the extension if the account internal credit score is less than 850. This deposit amount may be reviewed and increased based on actual metered consumption as deemed appropriate by JEA. 21 Commercial Accounts Account Type An account assigned to JEA General Service (GS), General Service Demand (GSD) or General Service Large Demand (GSLD), Interruptible, Curtail able, Municipal, and all Customer class as defined in JEA Electric Rate Tariff Schedule that are not Residential, and similarly classified in the JEA Water Rate Tariff Schedule. Includes all accounts that are in business names. Characteristics of a Commercial Account Customer and Credit Classifications in the Customer Information/Billing System Customer Class CAB CBS COMM COMM CYCLE21 DCSD GOVT GOVT KEY/IND KEY/IND KEY/IND Description Apts and Shopping Centers Builders and Property Mgmt. Rate 20s / small business Hydrant Meters Rate 30s / large business Duval Co School Government Interchange Rate 40s / Industrials, MV90, Special Services Rate 40s / Industrials, MV90, Special Services Rate 40s / Industrials, MV90, Special Services Collection Class CAB/CBS CAB/CBS COM HYDRANT CYCLE21 GOVT GOVT INTERCHANGE KEY ACCT COMMON SPECIAL Deposits The standard deposit for a Non-Residential Account (or new premises for existing Customer accounts) shall be equal to the greater of two (2) times the monthly average billed consumption at the current applicable rate, or the standard deposit ($200.00 for electric, $100.00 for water/waste water, $50.00 for irrigation, $75.00 for sewer only, and $50.00 for water only) to be held by JEA until accounts are closed and the Customer has met all its financial obligations to JEA. Deposits will be calculated by JEA based on size of service, estimated hours of operation, proposed equipment to be used or other methods such as premise history as deemed appropriate by JEA, with no maximum. JEA is not required to segregate deposits. JEA may utilize the deposit(s) obtained under this policy to satisfy final charges associated with these services. 22 a. Initial deposits must be paid in full before service is activated b. Customers that have any unpaid charges still present at account activation will become part of that account and subject to credit and collection policies and procedures governing active accounts. (Refer to new ownership in item c) c. Accounts that have changed ownership, entity structure, or other statutory reorganizations such Debtor in Possession or emergence from Bankruptcy shall be subject to this same deposit criterion. d. Accounts on the Builder’s Deferral Program, at JEA’s discretion, may grant ongoing deferred billing for Pre-service fees that are typically paid in advance. Customer’s that qualify and agree to the deferred billing program will be required to secure the account with a deposit based on two (2) times their average billing. Customers that do not qualify or agree to the deferred billing program must pay all Pre-service fees in advance and will be subject to the standard Commercial deposit requirements based on average consumption usage. e. Deposits on Hydrant Accounts serve as collateral and will not accrue interest. f. Deposits on Area Lights serve as collateral. Government Agency Deposit Waiver JEA waives all deposit requirements for agencies of the City, County, State and Federal governments. Property Management If any property management wants to start additional utility services, they must agree to have all of the services on one consolidated bill and either one of the following: Payment in full for past due amount. Accept financial responsibility for additional utility services. Provide Company name, FEI# and other relevant Customer information required by JEA. Provide and maintain a deposit equal to the two (2) times the average monthly consumption (typically the last twelve (12) months) for their account or two (2) times their estimated usage on all premises (if twelve (12) months billing history is unavailable). Non-cash deposits as defined in the CR40400 MBC 302 are acceptable. Fax JEA an authorized agent letter signed by the property owner and notarized with all the owner’s information required by JEA: o Owner’s current address o List of authorized user’s o Mandatory passwords Additional Service 23 If any property owner wants to start additional utility service, they must agree to have all of their services on once consolidated bill and either one of the following as required: If the number of premises is less than ten (10), including their personal residence, the property owner’s account may be establishes as a “RES” for Customer and collections classifications which is subject to our residential deposit requirements. When the property owner provides full and legitimate credit information including their full social security number that is documented in the JEA Customer Information and Billing System and complies with JEA Good Customer Relationship, an additional deposit required may be waived. If the number of premises is ten (10) or greater including their personal residence, then the property owner may keep their personal residence on the “RES” account but must establish another account as a “CBS” for Customer and collection classifications for the other premises which is subject to our commercial deposit requirement. The requirement is to provide and maintain a deposit equal to two (2) times the average monthly consumption (typically the last twelve (12) months) for their account, or two (2) times their estimated usage on all premises (if twelve (12) months billing history is unavailable). In Lieu of Deposit Non-Residential Customers may provide the following security in lieu of cash deposits: An Irrevocable letter of credit conforming to the Uniform Commercial Code and acceptable to JEA, or An Indemnity/surety bond executed on approved JEA form and terms, and provided the surety bond provider is licensed to transact business in the State of Florida and has financial credit ratings and strength acceptable to JEA. Temporary and Miscellaneous Service Agreements Temporary electric, water, and ground water discharge services are provided to a Customer upon request and approval by JEA. Deposits for these services will be assessed as follows: For Electric: Eligible Customers may apply for temporary metered electric service as approved by JEA. A minimum deposit of $60.00 is required for each temporary electric service point. This deposit amount may be reviewed and increased based on actual metered consumption as deemed appropriate by JEA. For Political Campaign Use: Customers requesting service for political campaign use will be subject to requirements of a New Customer and governed by JEA credit and collections policies and procedures for active accounts. The Customer must make request in accordance with applicable political campaign laws. (Florida Statutes 106.021 & 106.11). Area Light: Prior to Area Light installation, a contract for the lighting service is executed by the Customer and JEA. The initial term of the contract is (3) years. In the event the light is removed prior to expiration of the first (3) year contract, either at the Customer’s request or for non-payment of a bill, a “Take Down” fee shall be assessed to the Customer. Average cost per fixture is calculated monthly based on information available in the current Electric Rate Tariff. 24 For Water: Eligible Customers may apply for a temporary hydrant water meter in accordance with JEA’s Fire Hydrant Meter Policy and Procedure. A deposit of $1500.00 will be required for each hydrant meter assembly. No credits for water usage charges will be allowed against these deposits. The deposit for these services will be returned to the Customer when the assembly is brought back to JEA and all water, usage and late fees have been paid in full. JEA may utilize the deposit obtained under this policy to satisfy final charges associated with these services. To view the fire hydrant policies go to JEA.com: Fire Hydrant Meter Policy and Procedure For Ground Water Discharge: Customers who are authorized by JEA Environmental Services Group to discharge groundwater into JEA's sewer system will be assessed a minimum deposit amount of $300.00 upon application for service. This deposit amount may be reviewed and modified based on actual metered consumption. JEA, at its discretion, reserves the right to assess a deposit in compliance with its internal policies for these non-residential Customers at any time upon notification to the Customer. Internal Credit Score and Deposit Review Non-residential accounts will receive a reduction in their credit score in increments of 50 demerits for each late payment. Upon reaching a JEA internal credit score less than 850, a deposit review will be given and a subsequent deposit increase may be added to the account. SIGNED: /s/Robert Growcock Director, Customer Experience Strategy and Support EFFECTIVE DATE: OCTOBER 30, 2015 Revision Dates: October 4, 2013 March 1, 2015 September 17, 2015 October 30, 2015 25