H.F. 560 Section 1. Section 476.20, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 6. An electric utility may install 3 and operate, upon a customer’s request and pursuant to an 4 appropriate tariff for any type of classification of service, 5 a prepaid metering system and equipment that is configured 6 to terminate electric service immediately and automatically 7 when the customer has incurred charges for electric service 8 equal to the customer’s prepayments for such service. The 9 automatic termination of electric service once the customer’s 10 prepaid limit has been reached shall be considered a voluntary 11 termination of service by the customer and shall not be 12 considered a disconnection by the utility for purposes of 13 this chapter and applicable rules adopted by the board. The 14 utility shall be required to educate a customer in advance of 15 installation concerning the use of the prepaid meter and the 16 potential for disconnection. 17 EXPLANATION 18 This bill permits an electric utility to install and 19 operate, upon a customer’s request and pursuant to an 20 appropriate tariff for any type of classification of service, 21 a prepaid metering system and equipment that is configured 22 to terminate electric service immediately and automatically 23 when the customer has incurred charges for electric service 24 equal to the customer’s prepayments for such service. The 25 bill provides that automatic termination of electric service 26 once the customer’s prepaid limit has been reached shall be 27 considered a voluntary termination of service by the customer 28 rather than a disconnection by the utility. The bill directs a 29 utility installing a prepaid metering system and equipment to 30 educate a customer in advance of installation concerning the 31 use of the prepaid meter and the potential for disconnection. 32 -1- LSB 2693HV (1) 84 rn/sc 1/ 1