PAYS® Essential Elements & Minimum Program Requirements

A.  A program based on PAYS® has these essential elements:

  1. A tariffed charge assigned to a location, not to an individual customer;
  2. Billing and payment on the utility bill with disconnection for non-payment; and
  3. Independent certification that products are appropriate and savings estimates exceed payments in both the near and long terms.

B.  A program based on PAYS® has these minimum program requirements: 

  1. The offer to the customer will not be burdened with customer risk, which undermines the offer’s attractiveness, results in fewer projects being completed, and reduces the program’s effectiveness in achieving its goals.
  2. The utility doing billing and collection of PAYS charges agrees to pay the capital provider(s) each month the amount billed to PAYS customers that month, regardless of the utility’s collections, and to treat any bad debt for PAYS measures the same way that it treats all other bad debt.
  3. PAYS offers will not be forced to compete with other rebate options. Any utility offering rebates and implementing a program using the PAYS system will offer the same rebates to all participants. Utilities can reduce the costs for rebates if rebates available to all customers are limited to the amount required to qualify an upgrade for the PAYS tariff.