Rule-Making Notices (Hearing Notices)

Comparison with existing or proposed federal regulations

The Fair and Accurate Credit Transactions Act1 (FACT) included a number of changes to the Fair Credit Reporting Act2. Many of these changes addressed identity theft risks and plans that companies must develop to ensure the identity of those who already have accounts, or who open new accounts, with the company. This rule is intended to harmonize the requirements of the federal government and the commission with regard to identity theft risks.

1Pub. L. No. 108-159, 117 Stat. 1952.

215 U.S.C. 1681.

Comparison with similar rules in adjacent states

Michigan permits utilities to request customer identification similar to this rule (MI Admin. Rule 460.106). Illinois (see, e.g., 83 Ill. Adm. Code 280.70), Minnesota, and Iowa (see Iowa Admin. Code r. 199-19.4(16)) do not have administrative rules either allowing or prohibiting a utility to require identification as a pre-condition for service, but each state requires utilities to comply with company-specific tariffs when they review applications for service. Many of those tariffs allow utilities to require supporting documentation, including identification.

Effect on Small Business

This rule has no effect on small businesses since these utilities, as monopolies and unlike small businesses, are all dominant in their field. Further, these rules primarily harmonize the commission's rules on the provision of utility service with federal regulations.

Initial Regulatory Flexibility Analysis

This rulemaking will not have an effect on small business.

Contact Person

Questions regarding this matter should be directed to Justin Chasco at [phone] or [e-mail]. Small business questions may be directed to Anne Vandervort, Gas and Energy Division, at [phone], or [e-mail]; Gary Evenson, Telecommunications Division, at [phone], or [e-mail]; or Denise Schmidt, Water Division, at [phone] or denise.schmidt@ wisconsin.gov. Media questions should be directed to Nathan Conrad, Communications Director, at [phone]. Hearing- or speech-impaired individuals may also use the commission's TTY number: If calling from Wisconsin, [phone]; if calling from outside Wisconsin, [phone].

Text of the Rules

Section 1. PSC 113.0301 (1m) (i) is amended to read:

PSC 113.0301 (1m) (i) Failure of an applicant for utility service to provide adequate verification of identity and residency, as provided in sub.(3) to provide information or documentation required by s. PSC 113.0306.

Section 2. PSC 113.0301 (1m) (j) and (3) are repealed.

Section 3. PSC 113.0406 (7) is repealed.

Section 4. PSC 113.0408 and 113.0409 are created to read:

PSC 113.0408 Application for residential service.

(1) For purposes of this section, “written" or “in writing" means legibly printed on paper or, with the intended recipient's permission, legibly printed in an electronic form that the recipient can electronically store and retrieve for future reference.

(2) (a) A residential user of electric service shall apply for service.

(b) A utility may require a verbal or written application for residential service. The utility shall establish a written policy for when a written application is required. A utility may accept an application for service from a person other than the user or potential user of service.

(c) 1. Except as provided in par. (d), a utility may only require that an applicant provide the following information in an application:

a. Legal name and birthdate of the user of service and the person responsible for bill payment, if different than the user.

b. If the user of service and person responsible for bill payment have telephone service, the telephone number of the user of service and the person responsible for bill payment, if different than the user. Lack of telephone service is not grounds for service refusal.

c. Address where service is to be provided.

d. Mailing address if different from service address.

e. Date requested for service to begin.

f. The most recent previous address of the person responsible for bill payment.

g. Initial identification data under subd. 2.

2. A utility shall accept any of the following items as adequate initial identification data:

a. Driver's license number.

b. State identification card number.

c. Passport number.

d. Social security number.

3. If a utility requests the initial identification data under subd. 2., it shall inform the applicant of all acceptable forms of initial identification data and allow the applicant to choose which the applicant wishes to provide.

(d) If a utility determines that an applicant's response under par. (c) 1.a. to f. indicates that additional information is necessary to further evaluate the applicant's credit history or identity, the utility may require the applicant's addresses for the past 6 years as part of its application for service. Each utility shall establish a written policy for requesting the application information under this paragraph.

(e) A utility may request information other than that listed in pars. (c) and (d), but before requesting it the utility shall inform the applicant that providing that information is optional.

(f) A utility may refuse service for failure to provide any information specified in par. (c) 1.a., c., e. to h., or par. (d).

Note: See sub. (3) (a) about what can be required if an applicant refuses to provide the initial identification data under s. 113.0408(2)(c)1.g.

(3) Identity and residency verification. (a) A utility may require verification of the initial identification data or the residency, or both, of the person responsible for bill payment under any of the following circumstances:

1. The application is for service at a premises where a bill remains unpaid for service provided within the previous 24 months.

2. The person responsible for bill payment has an outstanding bill with the utility but claims that the bill was accrued in the person's name as a result of identity theft.

3. The applicant fails to provide the initial identification data under sub. (2) (c) 1. g. or the utility finds, with reasonable certainty, that the initial identification information is inaccurate.

(b) A utility shall establish a written policy for when it will require verification of identity or residency under par. (a).

(c) A utility shall accept any of the following items as adequate verification of identity:

1. Any one of the following items:

a. Valid driver's license or other photo identification issued by a state, U.S., or tribal governmental entity.

b. Valid U.S. military or military dependent identification card.

c. Valid passport.

2. Any two of the following items:

a. Social security card.

b. Certified copy of a marriage certificate.

c. Certified copy of a judgment of divorce or legal separation.

d. Military discharge papers, including federal form DD-214.

e. Valid student identification card with the applicant's photo.

f. Current employee photo identification card that includes information, such as the employer's telephone number or address, which can be used for verification purposes.

g. Letter of identification from a social service agency or employer that includes information, such as the agency or employer's telephone number or address, which can be used for verification purposes.

(d) 1. A utility shall accept any one of the following items as adequate verification of an applicant's residency:

a. Current utility bill.

b. Current financial institution statement.

c. Rental agreement.

d. Documents indicating home purchase.

e. Current paycheck or pay stub showing the applicant's name and address, and the employer's name.

f. Verification of address provided by a social service or government agency.

2. A utility may require an applicant to provide information that may be used for verification purposes, such as a telephone number or address, if the applicant submits one of the items in subd. 1. b., c., e., or f. to the utility.

(e) If a request for verification of identity or residency is based on par. (a) 2., the utility may require that the applicant provide the information in s. 196.23 (1), Stats.

(f) If a utility requests information under this subsection, it shall inform the applicant of all items that are acceptable for verification of identity or residency, and allow the applicant to choose which items the applicant wishes to provide.

(g) If an applicant refuses to provide the information under sub. (3)(c) or (d) or a utility finds, with reasonable certainty, that the verification is inadequate or falsified, the utility may request an additional item, refuse service or disconnect service.

(4) Processing applications and providing notice. (a) A utility shall approve or deny an application for service no later than 5 days after receipt of the information required under this section.

(b) A utility shall notify the applicant in writing within 5 days of its denial. A utility may notify an applicant verbally before written notification is sent. An application shall be considered denied when a service refusal has been finalized and no immediate conditions that could change that refusal remain. The notification shall include all of the following:

1. An explanation of why service is being refused.

2. The applicant's right to ask commission staff to review the refusal.

3. The commission's address, telephone number and web site.

Note: For example, if a utility has told a customer that it would supply service if the customer makes a payment, enters a deferred payment agreement or provides additional identity or residency information under sub. (3), the refusal is still conditional and has not been finalized.

(c) If a third party applies for service, a utility shall send written notification of the application to the most recent previous address of the person responsible for payment and the address for which service has been requested.

(d) If an applicant indicates that a third party is responsible for payment, a utility shall send written notification of the approval or denial of an application to both the third party and the applicant within 5 days of the application's approval or denial, although a utility may notify the third party and applicant before written confirmation is sent. If service is refused, the written notification shall include the information in par. (b) 1. to 3.

PSC 113.0409 Application for commercial and farm service.

(1) For purposes of this section, “written" or “in writing" means legibly printed on paper or, with the intended recipient's permission, legibly printed in an electronic form that the recipient can electronically store and retrieve for future reference.

(2)(a) A user of electric service shall apply for service in a form specified by the utility.

(b) A utility may require a verbal or written application for commercial or farm service. The utility shall establish a written policy for when a written application is required. A utility may accept an application for service from a person other than the user or potential user of service

(c) The utility may only require that an applicant provide the following information in an application:

1. Legal name of the user of service and the person responsible for bill payment, if different than the user.

2. Telephone number of the user of service and the person responsible for bill payment, if different than the user.

3. Address where service is to be provided.

4. Mailing address if different from service address.

5. Date requested for service to begin.

6. The most recent previous address of the person responsible for bill payment.

7. Credit information under par. (e).