Credit Requirements, Customer Rights and Obligations

1. Introduction
The purpose of this is to provide utility customers with information concerning the credit policies of Public Utility District No. 1 of Clallam County (the “District”) and to advise you of your
rights and duties as a District customer. Services shall be provided upon accepted application, required verification of personal identification, and payment of appropriate fees. Applications are available at any District office and at www. clallampud.net.

The District bills all customers every month. Customers are afforded a reasonable time to pay their bills and make arrangements for payment if they are temporarily unable to pay their bill in full. Customers have an opportunity to contest any billing through an informal conference in the District’s Customer Service Department and a right to appeal to a utility Hearing Officer – a management-level employee who is not a member of the District’s Customer
Service Department. At the same time, sound business practices and fairness to our many good paying customers require that the District make reasonable collection efforts including disconnection of service for non-payment. These policies and procedures are explained in more detail later in this page.

2. Deposits
A deposit may be required from residential and non-residential customers when applying for service to open an account. An identity validation and credit assessment will be conducted for customers who do not currently have service with the District or if an existing account requires updating. If a satisfactory credit rating is obtained
through the assessment or you are an existing customer who has an established satisfactory credit rating with the District, you may be
excluded from the deposit requirement. Nothing in these rules shall prevent the District’s requiring additional or new deposits when
conditions warrant. Deposits will be refunded upon termination of service after all outstanding amounts due the District have been paid.

REFUND OF DEPOSIT SUMMARY – At the discretion of the District, deposits may be credited to an account when the customer,
by prompt payments of all bills rendered, has established a satisfactory credit rating. Upon termination of service, after all outstanding amounts due the District have been paid, deposits will be credited to any other active service with the District. If the customer has no active service the deposit will refunded to the
customer, issued by a mailed check.

3. Billing
Customers are billed every month. Bills are mailed first-class to the mailing address provided by the customer, or via email if
requested, and a customer’s failure to receive a bill does not release the customer from paying the bill when due. Bills become past-due twenty-eight (28) days after the billing date. If a customer wishes to make arrangements for payment, the customer must reach office
personnel before the due date of the billing statement. If a customer disputes or does not intend to pay the full amount of the bill when
due, they shall have the right to an informal conference with certain designated employees in the District.

4. Disconnection
The District reserves the right to disconnect or refuse utility service for appropriate reasons including:
a. failure to pay a past-due bill or make satisfactory arrangements for payment within 28 days of billing;
b. failure to pay a security deposit
c. failure to comply with the terms and conditions of a deferred payment arrangement;
d. failure to pay or make arrangements for payment of a previous unpaid balance;
e. when customer has been issued appropriate delinquent notice and payment is dishonored by a financial institution, and:
f. violation of the District’s service policies.

Disconnection notices will be sent to customers by first-class mail and will advise the customer of the reason(s) for the disconnection action.

5. Informal Conference
All customers have the right to an informal conference prior to the payment date shown on the disconnection notice with designated
employees at any of the District’s offices. The designated employees shall have authority to make arrangements for deferred payments
by the customer and to consult with appropriate District personnel to make any adjustments concerning billing. The conference may be in person or by telephone. The informal conference must occur during regular business hours: 7 a.m. to 5 p.m., Monday through Thursday. The customer may be represented by counsel and
shall have a full opportunity to present his or her position. The District employee shall advise the customer promptly of the reasons for the District’s action on the customer’s inquiry.

INFORMAL CONFERENCE – ARRANGEMENTS
FOR DEFERRED PAYMENT
The designated employees will endeavor to permit arrangements for deferred payments by customers who are unable to pay the full amount of their current bill due to a bona fide temporary
financial difficulty. A number of factors will be considered in determining the deferred payment program available to the customer including: the size of the delinquent account, the time the
bill has been unpaid, the customer’s past credit history with the District, and the customer’s present financial situation. Arrangements for deferred payment may not be available to customers who have not fully and satisfactorily complied with a previous arrangement or to customers who have had repetitive credit problems with the District.

6. Appeal
A customer who is not satisfied with the outcome of the informal hearing has the right to appeal to the District’s Hearing Officer.
The Hearing Officer is a management-level employee, not associated with the District’s Customer Service Department, who has been designated by the Commissioners to review appeals from informal conferences. The appeal must be received by the District’s Hearing Officer within 5 working days of the informal conference.

APPEAL – HEARING PROCEDURE
The customer shall have the option of a hearing in person at the District’s main office or by telephone. The hearing must take place during regular business hours: 7 a.m. to 5 p.m., Monday through Thursday, and within 10 business days of the receipt of the appeal. The customer should arrange for a specific time and date for the
Appeal Hearing. The Hearing Officer may use a recording device or other appropriate means of preserving a record of the hearing; the customer may provide, at the customer’s expense, a court reporter or other means of establishing a record of the hearing. The customer shall have the right of counsel; but the customer, at the time the
hearing is scheduled, must advise the District whether the customer will be represented by counsel. The customer shall open the Appeal
Hearing with a statement concerning the appeal and then present evidence in support of the appeal. The customer shall have the reasonable right to examine the District’s records concerning
his or her account. After the customer has completed the presentation of the evidence, the appropriate District employees will present the District’s position. The customer shall have the right to present additional evidence to rebut the District’s position. The Hearing Officer may inquire of the customer or any witness.

APPEAL – WRITTEN DECISION
The Hearing Officer shall provide the customer with a written decision following the appeal. The written decision shall include the following: the nature of the customer’s appeal, the decision of the Hearing Officer, and the reasons for the decision. The decision shall be promptly sent by certified mail to the customer following the
Appeal Hearing. The customer shall have three days following receipt of the decision to make any payments required in the decision. If the customer refuses to accept delivery of the
written decision or fails to make the payments as required, the District may disconnect service and/or proceed with further collection efforts without further notice to the customer.

7. Disconnection Pending Appeal
Service will not be disconnected while a customer is following the appeal procedures set forth above. Service may be disconnected
without further notice three days following the customer’s receipt of the Hearing Officer’s written decision if the customer fails to comply with the requirements of the written decision.

8. Meter Tampering
Any person knowingly and maliciously breaking District meter seals and/or meter rings, reconnecting a previously disconnected meter
for the purpose of restoring utility service, or tampering with any District equipment with the intent of defrauding or illegally diverting utility service shall be prosecuted by the District in
accordance with RCW 9A.56 (Washington law). Meter tampering charges will be added to the estimated billing for any unmeasured or
unauthorized services to cover the expense of restoring District equipment.

9. Collection Charges
RETURNED PAYMENT CHARGE – An accounting service charge may be assessed to a customer if a payment tendered to the District
is not honored by the customer’s financial institution.

FIELD COLLECTION OR EXTENSION
CHARGE – There will be a charge to a customer who has not responded to a Disconnect Notice, requiring a District representative to visit the property with the intent of disconnect for non-payment. District employees cannot accept payment in the field and a field extension may not be extended if offered at a prior trip. A
customer may avoid disconnect by making an acceptable payment using the phone payment system or online if done immediately upon the arrival of the District field representative.

10. Restoration of Service
Service that has been disconnected for non-payment of amounts due the District or violation of District service policies will not be restored until the situation resulting in the disconnection has been resolved to the satisfaction of the District. There will also be a reconnection charge as follows:

Standard reconnection charge for restoration during business hours of 7 a.m. to 4 p.m., Monday through Thursday (Restoration between
4 p.m. – 5 p.m. may require additional overtime charges).

Restoration after business hours requires payment of past-due balances plus overtime charges.

District Offices and Phone Numbers

ACCOMMODATIONS
Individuals who need auxiliary aids for effective communication with Clallam County PUD are invited to make their needs and preferences known to the District’s Customer Service Department.