Ala. Admin. Code r. 770-X-1-.08

Current through Register Vol. 43, No. 02, November 27, 2024

Section 770-X-1-.08 - Deposits

(1) Any utility, upon initiation or re-initiation of service, may require a cash deposit from a prospective customer, a presently disconnected customer, or a former customer for the purpose of guaranteeing final payment for service when, in the judgment of the utility, such deposit is necessary. A utility may require such deposit prior to providing service or require deposit payment by separate bill or coincident with or included in the first monthly billing. If such deposit has not been made at the time specified by the utility, service may be withheld or discontinued. Such required deposit shall not exceed the amount of an estimated bill for two regular billing periods or in the case of a customer whose bills are payable in advance, it shall not exceed an estimated bill for one regular billing period, plus two months estimated toll. Interest will be paid by the utility upon such deposits at a rate of seven percent (7%) annually. Such interest shall be paid annually, calculated to December 1 of each year for the time such deposit was held by the utility, unless such period is less than one month. Customer's deposit interest payment shall be made by credit to the customer's account on the December billing. Additionally, a utility may require, upon five (5) days' written notice, a deposit, as stated hereinabove, from a customer whose account is not in good standing, from a customer whose deposit has been refunded or found to be inadequate, or if a customer's usage increases sufficiently to warrant an additional deposit.

(a) Additional deposit may be required from a telephone customer when excessive toll occurs and there is a known credit risk, either upon written notice or verbal notification subsequently confirmed in writing. If the deposit requirement is not met, toll restriction may be applied where technically available. If toll restriction is not available, local service may be denied if the deposit requirement is not met.

(2) Each utility having on hand such deposits from current customers, or hereafter receiving such deposits from customers, shall keep records to show:

(1) the name and account number of each customer making a deposit;

(2) the premises occupied by the customer;

(3) the date and amount of deposit; and

(4) a record of each transaction concerning the deposit.

(3) Each utility shall issue a receipt to every customer from whom such deposit is received. A customer's cancelled check or receipted bill shall satisfy this requirement.

(4) A utility shall not hold a residential customer's deposit beyond December following 24 months of deposit retention, if such account is considered in good standing by the utility. At this time, residential customers whose deposits have been held by the utility shall have their deposit and accrued interest refunded by the utility crediting such customer's December billing.

(5) Customers may obtain deposit refunds prior to the mandatory refund date by either:

(a) Application to and approval by the utility. Barring that a customer's circumstance is other than in good standing, the utility may refund deposit and accrued interest.

(b) Upon final discontinuance of service, the utility shall apply such deposit with accrued interest thereon to any amounts due by customers for utility service. If any balance is due customer, same shall be refunded to customer by the utility.

(6) Each utility shall provide reasonable ways and means so that a depositor who makes application for the return of his deposit, or any balance to which he is entitled, but is unable to produce the original certificate of deposit or receipt, shall not be deprived of this deposit or balance.

(7) Upon the sale or transfer of any public utility, the seller shall file with the Commission, under oath, a list showing the names of all customers who at the time of such sale or transfer have deposits with such utility, the date each such deposit was made, the amount of such deposit, and the interest agreed to be paid thereon.

Ala. Admin. Code r. 770-X-1-.08

Effective January 1968. Amended December 1969. Amended April 1974. Amended October 1988. Filed with LRS February 5, 2013. Filed for Codification in the Alabama Administrative Code by the Alabama Public Service Commission on February 5, 2013, pursuant to Code of Ala. 1975, § 41-22-7.

Author: Alabama Public Service Commission

Statutory Authority:Code of Ala. 1975, §§ 37-1-32, 37-1-38, 37-1-57.