Section 307: PrePaid Metering

I. Objective:

To provide PEC’s members an option to pay in advance for electricity.

II. Policy Content:

To establish a procedure to properly administer charges, enroll members, and address various scenarios for PEC’s PrePaid Metering (PPM) program.

III. Provisions:

A. Enrolling in and Removal from PPM

  1. Eligibility for PPM
    Any self-contained, single phase Residential or General Service account with a 240-volt, class 200 or class 320 amp, 3-wire meter with ability to communicate remotely is eligible for PPM with the following exceptions:

    1. Locations where an occupant has a condition considered life threatening without electric service are not eligible for PPM. Members are required to sign the PPM Agreement acknowledging this statement and agreeing to notify PEC should any occupant meet this criterion in the future.
    2. Members requesting to enroll in PPM must have the means to check their account balance through PEC’s online payment portal or by telephone.
  2. New Service Applicant
    1. New applicants who wish to participate in PPM may do so by completing a PPM Agreement in addition to the standard Agreement for Permanent Electric Service.
    2. Deposit and/or cosigner requirement will be waived.
    3. New applicants will be required to post “$50/$50/50%”
      1. $50.00 Connect fee. Connect fee will be waived if an internal disconnect is already installed at the location where service will be established.
      2. $50.00 Minimum Beginning Credit Balance (includes $5.00 Membership Fee).
      3. At least 50% of an Uncollectable Amount or balance on member’s prior, inactive account(s) must be paid prior to reconnection. Any remaining amount will be placed in the PPM arrears account.
      4. After enrollment, 50% of each PPM payment will be applied toward any arrears amount until said amount is $0.00.
  3. Existing Members
    Members meeting Eligibility requirements may join PPM as follows:

    1. Member must sign PPM Agreement.
    2. Member must post “$50/$50/50%”
      1. $50.00 Connect fee. Connect fee will be waived if a remote disconnect/connect sleeve is already installed at the location where service will be established.
      2. $50.00 Minimum Credit Balance.
      3. 50% of Past Due Usage. “Past Due Usage” is defined as any amount previously billed which is still due after the most recent due date. For example, any balance owed after the 20th of any given month would be considered “Past Due Usage.”
      4. 50% of Past Due Usage. “Past Due Usage” is defined as any amount previously billed which is still due after the most recent due date. For example, any balance owed after the 20th of any given month would be considered “Past Due Usage.”
      5. After enrollment, 50% of each PPM payment will be applied toward any arrears amount until said amount is $0.00.
    3. If member who has been disconnected for nonpayment applies for PPM, any existing deposit plus interest will be applied toward amount for which member was disconnected and toward the T&C 307 - 3 reconnection fee, with the remainder being applied toward the PPM account.
  4. Members requesting to be removed from PPM and placed on regular monthly billing must post a security deposit equal to 2 months average bill for the service location with a minimum as established by Terms & Conditions of Service 201, III, C, 1, b, have a cosigner, or a satisfactory credit report if member owns service location.
  5. PEC may charge a Trip Charge in accordance with Terms & Conditions of Service No. 603 if the meter must be changed to accommodate the member’s request.

B. PPM Billing

  1. PPM accounts adhere to established Cooperative rates and Terms & Conditions of Service.
  2. Usage will be calculated on a daily basis using the account’s rate schedule.
  3. Should the meter fail to communicate a proper reading, an estimated reading will be calculated and applied until the true reading is communicated, at which time the account will be adjusted for any differences.
  4. Any charges billed on a monthly cycle will be prorated and billed daily. Such charges include but are not limited to the Minimum Monthly Charge (base charge), Minimum Monthly Bill, Security Light Rental Fees, and PowerShield Fees.
  5. Once all necessary data is received for regular monthly billing, a “true up” will occur to accurately bill PPM accounts.
  6. If applicable, Security Light KWH revenue charges will be billed during the billing process.
  7. Late fees are not applied to PPM accounts.

C. PPM Account Notifications

  1. PPM members do not receive a month bills.
  2. PPM members may check account balance at their convenience through the following methods:
    1. PEC’s Pay-by-Phone System.
    2. PEC’s SmartHub site.
  3. PEC will automatically notify members when their PPM credit balance reaches $20.00 or below, or below a threshold established by the member. Notification will be made by one or more of the following methods, which will be determined by the member during PPM application:
    1. Electronic Mail
    2. Automated Telephone Call
    3. Automated Text Message
  4. Members are responsible for notifying PEC should their methods of contact change.
  5. Automatic notifications will not be sent between the hours of 9:00 pm – 7:00 am.

D. PPM Payments

  1. 50% of each payment made toward a PPM account will be applied toward any arrears balance, if applicable.
  2. Payment may be made through PEC’s SmartHub site, PEC’s Pay-by-Phone System, or in person. Payments mailed, made through pay sites or online bill pay will be applied upon receipt.
  3. Energy Assistance Pledges
    1. Notations of pledges of Energy Assistance will be noted on account by Collections Manager.
    2. If Energy Assistance is being noted on the account, 50% of the payment will be applied toward any arrears balance once the payment is received.
    3. Energy Assistance will be applied toward the PPM balance once physically received at PEC’s office.

E. Disconnection/Reconnection of PPM Accounts

  1. Accounts with a balance of $0.00 or less will be reviewed each weekday morning, exclusive of legal holidays, by a PEC representative for accuracy and disconnected.
  2. Service will not be disconnected on weekends nor during inclement weather, in accordance with Terms & Conditions of Service 401, III, C, 1.
  3. Once a payment has been made to bring the account to a credit balance, the service will be reconnected automatically in accordance with Terms & Conditions of Service 401, III, F, 2.
  4. Returned Checks
    1. Check payments returned unpaid will result in a $30.00 returned check fee and will be applied toward the member’s PPM balance.
    2. If returned check plus fee results in a balance owing, the member will be notified and given 24 hours to post payment resulting in a PPM credit balance. Failure to do so will result in disconnection.
    3. “Payment by Check” option will be removed after 2 returned checks within a 12-month period.
  5. Services disconnected for seven (7) consecutive days will be closed with a final notice mailed to the member.
  6. No charge will be made for Disconnection or Reconnect, unless a trip to the member’s location is required as a result of the member’s delinquency.

IV. Responsibility

It will be the responsibility of the Sr. Vice President of Administrative Services and the Director of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: June 28, 2012
  • Revised Date: November 29, 2012
  • Revised Date: March 28, 2019
  • Revised Date: January 25, 2024
  • Revised Date: July 23, 2026