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Deposit Policy

Residential Security Deposits or Guarantees

The Cooperative may not require a security deposit or other guarantee of payment as a condition of new or continued service to a residential customer except in the case of service:

  1. To a residential customer who has not previously had utility service with the utility and who has not established an acceptable credit rating;
  2. To a residential customer who has on three or more occasions, within a 12-month period, received a final notice.
  3. As a condition for reconnection of service following discontinuance of service by the utility; and
  4. To a residential customer who in an unauthorized manner has interfered with or diverted the service of the utility situated on or about or delivered to the residential customer’s premises.
     

If a residential customer or prospective residential customer can demonstrate to the utility that the residential customer does not have adequate financial resources to pay the security deposit and the residential customer meets the qualifications of LIHEAP, or is subject to other special circumstances, the utility shall give special consideration to such a residential customer in determining whether or in what amount a security deposit will be charged or if payment by an installment agreement is appropriate. In making such determination, a utility shall accept documentation from the administering authority that such residential or prospective residential customer meets the qualifications of LIHEAP.
 

Residential Amount of Deposit

A deposit for a customer shall not exceed an amount equivalent to one sixth (1/6) of that residential customer's estimated annual billings; a utility shall base its deposit criteria upon the most recent available prior 12-month corresponding period at the same service location; or, if there is not a comparable period of service at the same service location, the deposit shall be based upon consumption of similar units in the same area.

Non-Residential Security Deposits

The Cooperative may require from any customer or prospective customer a deposit intended to guarantee payment of bills for service.  The Cooperative will not require a security deposit or other guarantee of payment as a condition of new or continued service to a customer except in the case of service:

  1. To a customer that has not previously had utility service with the utility and that has not established an acceptable credit rating;
  2. To a customer that has on three or more occasions, within a 12-month period, received a final notice;
  3. As a condition for reconnection of service following discontinuance of service by the utility; or
  4. To a customer that in an unauthorized manner has interfered with or diverted the service of the utility situated on or about or delivered to the customer’s premises.
     

In determining whether a customer that has not previously had utility service with the Cooperative has an acceptable credit rating, a utility shall consider the following:

  1. Documentation that the customer has an adequate credit reference from a utility where the customer had prior utility service;
  2. Documentation obtained by the utility from a commercial credit source; or
  3. Any other reasonable documentation.

 

A utility may give special consideration to a prospective or existing customer in determining if payment by an installment agreement is appropriate.
 

Non-Residential Amount of Deposit

A deposit for a non-residential customer shall be two (2) times the estimated or actual maximum monthly bill. 
 

Interest on Deposits

Simple interest on deposits at a rate not less than the rate required by law shall accrue annually to the residential customer's credit for the time the deposit is held by the utility. The deposit shall cease to draw interest on the date it is returned, on the date service is terminated, or on the date the refund is sent to the residential customer's last known address.
 

Deposit Adjustment

The Cooperative may review the consumer’s usage after service has been connected and adjust the deposit amount based upon the consumer’s actual usage.

 

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