Residential Security Deposits
Residential security deposits will be calculated using the billing cycle factor (2.5) times the customer’s average monthly load, at the location the customer is moving into, in the most recent 12 consecutive months within the last two years. Where relevant usage information is not available for the customer for 12 consecutive months within the past two years or the billing system is not capable of making the calculation, the customer’s average monthly load shall be based on a reasonable estimate made by the distributor. Deposits will be required only from those new customers who do not demonstrate reasonable credit worthiness, or from those existing customers who have proven poor credit. The distributor shall permit the customer to pay security deposit in 4 equal monthly instalments, the first instalment being due on the implementation of an implied contract or the signing of service agreement. The customer may pay the security deposit over a shorter period of time.
Interest will be credited to the customer account quarterly. The interest rate will be determined based on simple interest paid from the date of the deposit being received. Residential security deposits will be held until the customer no longer requires service, at which time, it will be applied to the customer’s final bill.
Return of the deposit will be considered annually providing the customer’s payment history reflects a one year history of prompt payments and is void of collection action. Deposits are added to the customers’ first bills. Any payment made is allocated first to the outstanding deposit amount required.
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