Service – Start/Stop/Transfer

Terms of Service

SECTION I: RULES OF SERVICE

1.1 ESTABLISHING SERVICE:
A) Application for service may be made in person and shall include the applicant’s name, new service address, mailing address (if different from service address), photo ID, previous address and phone number where they may be reached for further information. Along with this, it shall be
revealed whether they hold title to the real property at the service address. If renting or leasing, then the name and address of the property owner shall be listed.

B) New services will be connected and/or meters read or installed only during normal working hours, Monday through Friday, with a minimum of one (1) working day notice required. A charge will be made for requests for any services connected or meters read or installed outside normal working hours.

1.2 CUSTOMER DEPOSITS:
A) A deposit shall be paid by all customers who do not hold title to the real property at the customer’s service address. Owners of condominiums and townhouses are owners of real estate.

B) The Municipal Utilities Commission shall from time to time by resolution set the deposit requirements for residential customers, found on the current schedule of charges.

C) For commercial customers required to pay a deposit, the deposit shall be $1000. Commercial deposits may be satisfied by payment in cash, by posting a performance bond payable to the Willmar Municipal Utilities or as described in item ”F” below.

D) New residential rental customers who have an “on-time” payment history of twelve (12) consecutive months established with the Willmar Municipal Utilities within the last two (2) years, shall not be required to pay a deposit. The deposit requirement of a new residential rental
customer may be waived if the customer has established a payment history of twelve (12) consecutive months of on- time payments in the most recent period with another electric utility provided the payment history is verified directly with that electric utility and a valid social security number is provided for the account holder. Paid deposits subsequently determined to be waived under this section may be credited to the customer’s account or refunded by check to the customers at the Municipal Utilities option.

E) Deposits may be assigned or transferred from one customer to another by using prescribed forms and only by appearing in person at the Municipal Utilities office.

F) The owner of the real property at the service address may satisfy the deposit requirement of their tenant by either paying the deposit for the tenant or signing a “Guarantee of Payment Agreement” with the Municipal Utilities Commission.

G) The billing for utility service shall remain in the property owner’s name until the renter’s/lessor’s deposit requirement is satisfied in full.

H) Cash deposits shall earn interest at an annual percentage rate determined by the Minnesota Department of Commerce. Interest earned shall be credited automatically by reducing the December bill or at the time the deposit is returned, whichever comes first.

I) Deposits on residential and commercial accounts will be returned when a final bill is issued on an account. If a credit balance remains on a “final” account, the credit balance shall be refunded by check within forty-five (45) days of final billing. Refunds of $1.00 or less will not be sent
except upon written request of the customer. Except under extenuating circumstances, in the event of a lost refund check the stop-payment charge shall be deducted from the proceeds of a replacement check.

J) Customers will not be required to pay additional deposits due to increased deposit rates or additional utility services added.

K) If a customer’s utility service is disconnected for non-payment, a new deposit shall be required if there is no deposit presently on record or if the deposit is less than that required in the current deposit schedule. Payment of a new or additional deposit shall be made within 30 days of restoration of service.

1.3 IDENTITY THEFT PREVENTION PROGRAMS
A) RED FLAG RULE 16 C.F.R & Minn. Stat 216B
WMU developed an Identity Theft Prevention Program pursuant to the Federal Trade Commission’s Red Flag Rule, which implements Section 114 of the Fair and Accurate Credit Transactions Act of 2003. The Red Flag Rule defines “Identity Theft” as “Fraud committed using the identifying information of another person” and a “Red Flag” as a pattern, practice or specific activity that indicates the possible existence of Identity Theft. The written Identity Theft Prevention Program designed to detect, prevent and mitigate identity theft in connection with the opening of a customer account or any existing customer accounts and to respond promptly to any potential identity theft to eliminate damage that could result from identity theft.

B) CREDIT CARD SECURITY POLICIES
Willmar Municipal Utilities credit card security requirements are active as required by the Payment Card Industry Data Security Standard (PCI DSS) Regulations. In order to comply with Payment Card Industry Data Security Standards (PCI-DSS) as well as good business practices related to the handing of customer credit card information, WMU created policies and procedures for safe Data handling and the prevention of fraud and identity theft. WMU is committed to these security policies to protect information utilized by WMU in attaining its business goals. All employees are required to adhere to the policies described within this document and the CREDIT CARD SECURITY POLICY in addition to the WMU Information Technology Policy.

The PCI requirements apply to all systems that store, process, or transmit cardholder data. Currently, WMU cardholder environment consists only of limited payment applications (typically point-of-sale systems) connected to the internet but does not include storage of cardholder data on any computer system.

Due to the limited nature of the in-scope environment, this document is intended to meet the PCI compliance requirements as defined in Self-Assessment Questionnaire (SAQ) C. Should WMU implement additional acceptance channels, begin storing, processing, or transmitting cardholder data in electronic format, or otherwise become ineligible to validate compliance under SAQ C, it will be the responsibility of Willmar Municipal Utilities to determine the appropriate compliance criteria and implement additional policies and controls as needed. See Version 3.2.

The intentions for publishing a security awareness and acceptable use policy are not to impose restrictions that are contrary to the established culture of openness, trust and integrity. WMU is committed to protecting all employees, partners and the company from illegal or damaging actions by individuals, either knowingly or unknowingly.

This policy applies to employees, contractors, consultants, temporary employees, and all other workers at WMU, including all personnel affiliated with third parties. This policy applies to all equipment that is owned or leased by WMU.

Internet/Intranet/Extranet-related systems, including but not limited to computer equipment, software, operating systems, storage media, network accounts providing electronic mail, WWW browsing, and FTP, are the property of WMU. These systems are to be used for business purposes in serving the interests of the company, and of our clients and customers in the course of normal operations.

The purpose of this policy “WMU Information Technology Policy” is to outline the acceptable use of computer equipment at WMU. These procedures apply to all technologies, processes and personnel that relate to the processing of this information. We ensure all personnel affected by these procedures are aware of the responsibilities on at least an annual basis. These documents are reviewed on an annual basis and modified as necessary to reflect current business practices, new, legal or regulatory requirements and to ensure disclosure protocols are followed.

SECTION II: BILLING, COLLECTIONS AND DISCONNECTION

2.1 BILLING:
A) Bills are rendered for all services (electric, water, sewer, fixed charges, and material charges) so that they reach the customer on or about the same business day of each month. All bills for services and utilities are payable upon the specified due dates.

B) Readings of all meters used for determining charges to customers shall be made each month at or as nearly practicable to thirty (30) day intervals. When access cannot be gained to a meter, an estimated bill will be rendered. Estimated bills will be based on the customer’s normal consumption for a corresponding period during the preceding months.

C) The Willmar Municipal Utilities will bill each customer as promptly as possible following the reading of the meters. Each bill will show the present and preceding meter readings and dates of readings, consumption for each meter, the class of service, the amount charged for each meter, the date when the bill is past due, any late payment penalties assessed and the amount of sales tax. Estimated bills will be distinctly marked as such. Bills for service based on meter readings or estimated usage are computed in accordance with applicable rate schedules. Customers whose final reading is after the regular reading date shall receive a separate billing for the final period regardless of the number of days provided there is some consumption of utility service.

2.2 COLLECTIONS:
Payment must be received in the Willmar Municipal Utilities office by the due date stated on the bill. Payment may be made by cash, check, money order, travelers check, or credit card. Utility payment checks must be made payable to the Municipal Utilities Commission, Willmar Municipal
Utilities, City of Willmar or some other reasonable facsimile. Second party checks will not be accepted. The total amount of the check will be credited to the account; cash or credit card refunds will not be made. Postdated checks will not be accepted. Failure to receive a bill or past due notice shall not relieve the responsibility to pay.

• Credit Card Refund Policy: Cash or Credit Card refunds will not be made. WMU policy is not to issue refunds for these types of payments.

2.3 PAYMENT OPTIONS:
A) In addition to the traditional manner of making payments (first-class mail, night depository or “in person”) the Municipal Utilities also offers automatic bill payment and budget payment.

1. Automatic Bank Payment Option:

a.   Customers may arrange for payment of their utility bill through a deduction from their account at any financial institution by signing authorization forms at the office of the Municipal Utilities. Monthly billings marked “Do Not Pay” will be sent to the customer.

b.   If an automatic bank payment or credit card is returned by the bank (i.e. NSF, closed accounts or unauthorized transactions) the amount will be charged back to the customer’s utility account along with return fees in accordance with current WMU schedule of charges and must be paid manually by the customer. If there are 2 occurrences of bank returned items within a 12-month period, the account will be removed from the automatic payment plans.

2. Budget Options:

a.   A budget plan is available to any qualifying customer. Upon request by the customer, the Municipal Utilities will compute the rolling 12 months average to set an amount for a budget payment plan. The budget payment account will be reviewed from time to time by the Municipal Utilities and increased or decreased in accordance with current consumption patterns. A monthly billing showing the current month’s consumption and cost will be prepared and sent to the customer.

b.   If the account is disconnected for non-payment, the account will revert to normal billing procedure and any amount in the “arrears” column shall be subject to regular collection procedures.

3. Pay by Phone:

a.   Interactive Voice Response (IVR) 1-877-932-2639
Use our automated phone system to make a debit card or credit card payment.

4. Municipal Online Payments

a.   Quick Pay:
No payment information is stored. Customer must have account number and enter the payment information each time a payment is made.

b.   Online Account:
Customers can access their account, check usage and view billing history to make an online payment by credit card, or debit card.

2.4 RETURNED CHECKS AND/OR AUTOMATED CLEARING HOUSE (ACH) PAYMENTS:
A) For accounts on which a NSF check or ACH is received, the Municipal Utilities shall notify the customer immediately by first class mail that a check has been dishonored by the bank upon which it was drawn. Payment by cash, certified check or money order shall be required within 3 days from the postmark date of the letter from WMU to remedy the returned check or ACH payment, or service will be disconnected. The Municipal Utilities shall charge the amount of the check back to the customer’s account, and a service charge shall be added to the account for each NSF check or ACH payment returned to the Municipal Utilities.

B) If two (2) or more returned checks or ACH payments (NSF) are from the same customer within a twelve- month period, that customer shall be required to make all future payments in “cash only” until such customer has made 6 consecutive “on-time” payments.

2.5 UNCOLLECTED ACCOUNTS:
A) The Municipal Utilities will maintain a list of all accounts unpaid by customers who have previously obtained service from the Municipal Utilities. Prior to connection of any customer who owes the Municipal Utilities for past due billings for service, the customer shall make full
payment of the past due account as well as payment of any current deposit requirement.

B) The Municipal Utilities reserves the right to use any process of law, including collection agents, to collect unpaid accounts from any customer.

2.6 REVENUE RECAPTURE PROGRAM:
A Minnesota state program to aid in collecting outstanding bad debt–uncollected accounts from individuals (not businesses). A program authorizing the Minnesota Department of Revenue to intercept or recapture taxpayer refunds and apply them to debts owed to other state agencies and certain local governmental units. Willmar Municipal Utilities along with the (City of Willmar), registration ID #1750950016, participates in this program, effective March 14th, 2013. The debt may be from a contractual or statutory obligation, a court order or other legal obligation. This
program is in addition to and not a substitute for any other means of collection agency efforts.

2.7 LIENS AND ASSESSMENTS:
A) As provided in Section 4.05 Sub. 6 of the Willmar City Charter: The Municipal Utilities shall have liens on all real estate served by it for all unpaid utility bills of the owner of the real estate. After notice and opportunity for hearing has been provided, the amount of any unpaid
utility bill shall be certified to the County Auditor for collection with the real estate taxes next coming due. The Council shall by ordinance make such detailed provisions as it may determine to be necessary to provide for effecting the provisions of this subdivision.

As provided in Section 16-127. – Collection of unpaid charges of the Willmar City Charter: All utility charges are hereby made a lien upon the real property receiving services for which utility charges are incurred. All utility charges shall be billed directly to the owner of the real property receiving the services. Where utility charges remain unpaid thirty (30) days after the date payment is due, written notice shall be forwarded by mail to the owner of the real property served, stating that if the utility charges are not paid within ten (10) days from the date of the notice, the amount thereof shall be certified to the county auditor for collection with the taxes on the real property. If the utility services are to be discontinued because of delinquent utility charges, the notice shall so state. The notice shall also state that, during the ten-day period, the owner or his representative may request an appearance at the next regularly scheduled meeting of the municipal utilities commission to make objections to payment. Any objections shall be heard and passed upon by the commission. If the utilities charges have not been paid and the commission has not relieved the owner from liability therefor, the amount of the utilities charges shall be certified by the city clerk-treasurer to the county auditor, prior to October 10 of each year, to be extended on the tax rolls against such real property in the same manner as other taxes and collected by the county treasurer, and paid to the city clerk-treasurer along with other taxes. Until so collected, the charges shall be a lien upon the real estate so served. The city clerk-treasurer, in certifying such charges to the county auditor, shall specify the amount thereof, the description of the premises served, and the name of the owner of the premises.

The exception to this section shall not apply to real estate occupied by persons other than the Owner, providing that the persons occupying the premises make and deliver to the Willmar Municipal Utilities a cash deposit, or a bond in lieu thereof, in an amount to be determined by the
commission, not to exceed the utility charges reasonably to be anticipated during an average sixty-day period of service to the real property served.

This section shall not be construed to limit the right of the Willmar Municipal Utilities to recover, in a Civil Action in any Court, all utility charges that are not paid when due.

This section applies to subsequent owners of the subject real estate, as well, as this provision is recorded on all abstracts for property transfers in the City of Willmar.

B) Failing Water service lines:
Failed water lines pose a hazard to the public and add cost to the system through water loss. If deemed necessary to replace a service line, property owners, per Section 4.4 E of this policy, are responsible for 100% of the replacement. When a property owner does not have the financial means to
replace said water service line, WMU may finance the cost to replace by imposing a special assessment on the benefitted property, in coordination with and pursuant to procedures to be developed cooperatively with the City Clerk. The term of any such special assessment shall consist of a property tax levy of 1 year for each $1,000 of cost but not to exceed 5 years. The interest rate on such special assessment shall be set by the Municipal Utilities Commission. The benefitted property will be required to sign a “Consent to Assessment Agreement and Waiver of Irregularity and Appeal” in a form satisfactory to WMU.

2.8 BILLING ERRORS:
A) When a customer has been overcharged as a result of incorrect meter readings, incorrect application of a rate schedule, incorrect connection of the meter, faulty meter or other similar reasons, the amount of the overcharge shall be credited to the customer or refunded to “final” accounts. Billing adjustments shall be for the period beginning three years before the date of discovery. Billing adjustments resulting in a credit balance which is greater than 3 months average billing may be refunded by check. Other billing adjustments will remain as a credit balance on the account. If a refund is due to a person no longer a customer of the utility, the utility shall mail to the customer’s last known address either the refund or a notice that the customer has three months in which to request a refund from the utility.

B) When a customer has been undercharged as a result of the same reasons as in A) above, the amount of undercharge shall be billed to the customer. The revised billing shall be separated from the regular bills and the charges explained in detail. These shall be for a maximum one-year period from the time of discovery allowed for recalculating undercharges except for cases involving fraud or misrepresentation.

2.9 CUSTOMER SERVICE:
A) Customer complaints shall first be directed to the Customer Service Representatives. Any and all complaints shall be discussed politely and without abuse. Upon receiving a complaint, all pertinent information shall be received, such as the name and address of the complainant, the date and nature of the complaint. This should be followed by the manner in which the complaint was disposed of.

B) If personnel receiving the complaint cannot effectively handle the problem, the complaint shall then be referred to the proper department or other Municipal Utilities’ personnel.

C) If a complaint is not resolved to the customer’s satisfaction, the customer may request a hearing before the Municipal Utilities Commission.

2.10 PENALTIES:
A) For customers not on a budget, a late payment charge of 10% of the remaining current charges will be added to all bills where full payment is not received by the due date stated on the bill. For customers on a budget, a late payment charge of 10% of the remaining budget amount will be
added to the bill.

B) Failure to receive a bill shall not necessarily entitle the customer to remission of any late payment charge.

C) A penalty will be automatically forgiven if a customer’s previous twelve (12) months payments were on time.

D) Penalties may be waived by the Municipal Utilities upon order of the Municipal Utilities Commission or by Municipal Utilities personnel only when extenuating circumstances are considered.

2.11 PAST DUE NOTICES:
A) A notice of possible disconnection will be printed on the utility bill. About seven (7) days before the scheduled date of disconnection, a final notice will be prepared and mailed.

B) The following individual account information is put on each past due notice:

– Name of the account.
– Mailing address (includes street number and city).
– Service address (if different than mailing address).
– Customer account number.
– Date the notice is sent.
– The “arrears”, “current”, and “total amount” due are listed. – Date for termination of service.

C) The criteria to determine if an account is to receive a past due notice is as follows:

– The account has an “arrears” balance.
– The account does have “current” consumption charges (as opposed to material charges).
– The account does not have a penalty exempt status.
– The account is not finaled.

2.12 DISCONNECTION PROCEDURE:
Accounts subject to disconnection are those accounts receiving a final notice which have not paid or have not made arrangements to pay prior to the date of termination of service on the notice. Accounts will not be disconnected on a Friday or the day before a holiday.

A) Non-Cold Weather Disconnection
Before your electric service is disconnected, we will send you a written notice by first-class mail, showing the past due amount. If nonpayment of a bill is the reason for the disconnection, a Willmar Municipal Utilities representative can accept payment of the past due account and not
disconnect your electricity. With written notice, electric service may be disconnected if:

1. You fail to pay your bill for utility service,
2. You fail to meet Willmar Municipal Utilities deposit and credit requirements;
3. You fail to make proper application for service;
4. You fail to provide Willmar Municipal Utilities reasonable access to its equipment and property;
5. You breach the agreement for service;
6. You fail to provide such service, equipment, and/or rights-of-way necessary for service as specified by Willmar Municipal Utilities as a condition of obtaining service;
7. It is necessary for Willmar Municipal Utilities to comply with any order or request of any governmental authority having jurisdiction. Such written notice may not be given, however, if your electric usage is unauthorized or posing a serious hazard. Electricity may be disconnected
immediately and without notice if there is illegal activity, such as meter tampering or diverting current, or if a condition exists which would be hazardous to you, other customers, utility equipment or the public.

Willmar Municipal Utilities will not knowingly disconnect your service while you are properly pursuing a complaint with us or through the Municipal Utilities Commission. If we have tried and have been unsuccessful in resolving a dispute through established procedures, our last recourse would be to disconnect.

An additional reconnection fee will be charged to restore the utility service after hours. Delinquent accounts will only be reconnected during the hours of 8:00 a.m. to 3:30 p.m. Monday thru Friday.

B) Cold Weather Months (October 1 – April 30) – Residential Only

1. The Municipal Utilities will not disconnect the utility service of a residential customer if the disconnection affects the primary heat source for the residential unit when all the following conditions are met:

a.   The disconnection would occur during the period between October 1 and April 30.
b.   The household income of the customer is less than 50% of the state median household income level or the customer is on public or energy assistance as documented on the inability to pay form by the customer to the utility.
c.   A customer enters into and makes reasonably timely payments under a payment agreement that considers the financial resources of the household.

2. Before disconnecting service to a residential customer during the period between October 1 and April 30, the Municipal Utilities will provide the following information to a customer:

a.   A 30-day notice of proposed disconnection will be included on the utility bill.
b.   A statement explaining the customer’s rights and responsibilities.
c.   A list of local energy assistance providers.
d.   A form on which to declare inability to pay.
e.   A statement explaining available time payment plans and other opportunities to secure continued utility service.

3. The customer must not be disconnected until the Municipal Utilities investigates whether the residential unit is actually occupied. If the unit is found to be occupied, the Municipal Utilities must immediately inform the occupant of the provisions of this section. If the unit is unoccupied,
the Municipal Utilities must give seven days written notice of the proposed disconnection to the local energy assistance provider before making a disconnection. If, prior to disconnection, a customer appeals a notice of involuntary disconnection, as provided by Willmar Municipal Utility’s
established appeal procedure, the Municipal Utilities will not disconnect until the appeal is resolved.

C) Special Circumstances and Conditions affecting Disconnections:

1. If a Payment Assistance Agency states that they will be paying the account and how much they will be paying, the disconnection will not be made and reconnection will be made if termination of service has occurred.
2. In special situations such as bank foreclosures, estate settlements, etc., extensions may be given based on the bankers’ or attorneys’ guarantee of payment.
3. If the Municipal Utilities Commission, following a special hearing, allows extended terms, the normal disconnect policy will not apply.

2.13 LANDLORD/TENANTS:
A) Tenants may not be refused utility service conditioned upon the payment of any outstanding utility bills incurred by previous tenants or by the landlord/ owner of the rental property. However, should the landlord/owner’s account at the service address be subject to disconnection for
non-payment and service is requested in a new tenants name it will be presumed that the landlord/owner has requested restoration of service. Service is subject to immediate disconnection if it should be scheduled to revert to the landlord/owner’s account due to a tenant’s move.

B) A tenant shall be responsible for utilities until the end of the rental period unless they request that meter readings be taken on a different date. In cases of disconnection for nonpayment, where there is no new tenant or until the new tenant satisfies the Municipal Utilities deposit requirement, the landlord/owner’s name shall be placed on the utility account and any consumption billed to the landlord/owner until service is established in the new tenant’s name.

2.14 OTHER DISCONNECTION OF SERVICE:
A) With notice, the Municipal Utilities may disconnect or refuse service for failure of the customer to meet the deposit and payment requirements.

B) Without notice, the Municipal Utilities may disconnect service to a customer in the event of unauthorized use of utility equipment by the customer or in the event of tampering with the Municipal Utilities’ equipment.

C) With notice, the Municipal Utilities may disconnect service to a customer for failure of the customer to provide the Municipal Utilities reasonable access to its equipment, and/or right of way necessary to serve said customer.

D) In situations where the service is rendered at an address different from the mailing address on the bill, or where the Municipal Utilities has reason to know that a landlord-tenant relationship exists and that the landlord as customer would be subject to disconnection of service, the
Municipal Utilities may not disconnect service unless the occupant is offered the opportunity to pay the landlord’s bill or to subscribe to service in their own name. If the occupant declines to subscribe, the Municipal Utilities may disconnect service. In accordance with Minnesota law, a
tenant or group of tenants may pay the current bill of the landlord and deduct such payment from the rent. The Municipal Utilities shall not attempt to recover from a tenant any payment for outstanding bills or charges due on the account of a landlord. The Municipal Utilities shall not
attempt to recover from a landlord any payment for outstanding bills or charges due on the account of a tenant (exceptions: in cases where the Municipal Utilities is not informed of a tenant; in cases where the tenant has not satisfied the deposit requirements; or, in cases where the landlord
has guaranteed the utility bill under the tenants name).

E) With notice, the Utilities may disconnect service on an account if the Utilities has knowledge that an individual with an unpaid bill is receiving utility service under another customer’s name. The outstanding bill will be transferred to the account and be subject to regular collection procedures.