Section 407-815-7 - DEPOSITS FOR APPLICANTS AND CUSTOMERSA.Residential applicantsA utility may demand a deposit from a residential applicant only if one or more of the following circumstances apply:
1. An account balance for residential utility service incurred in Maine is unpaid at the time that the applicant requests service. The amount must be either:a. for service provided within the past six years from the utility from whom the applicant requests service; orb. for residential utility service provided by any utility within the past 12 months.2. An unpaid, undisputed account balance for residential utility service provided in Maine within the past six years was not paid until after the utility obtained a court judgment.3. The applicant was disconnected for nonpayment of an undisputed bill by any utility within the past 12 months.4. The applicant was disconnected for unauthorized use or theft of service by any utility within the past 12 months.5. The applicant entered into a plan of repayment under Chapter 13 of the Federal Bankruptcy Code and the Bankruptcy Court dismissed the plan for failure to comply with its terms within the past six years.6. The applicant has no source of income sufficient to pay the cost of utility service.B.Non-residential applicantsA utility may demand a deposit from any non-residential applicant as a precondition of granting service but the utility must consider a non-residential customer's prior credit history with another utility when determining whether to require a deposit for service to a new business of that non-residential customer provided the non-residential customer requests this consideration and provides permission for the other utility to share the credit history information. The utility must consider the non-residential customer's prior credit history with the other utility in the same manner it would consider the prior credit history of a non-residential customer located in its own service territory. A utility must also consider a non-residential customer's prior credit history with that utility when determining whether to require a deposit for service to a new business of that non-residential customer within the utility's service territory.
C.Residential customersA utility may demand a deposit from a residential customer only if:
1. the customer files a petition under the Federal Bankruptcy Code and the Federal Bankruptcy Court allows the utility to demand a deposit;2. the customer requests that service be reconnected at the same or different location after the customer was disconnected for nonpayment for a second time within a 24-month period. In these situations, the utility must take into consideration any commitment of assistance offered by assistance agencies to reconnect the customer's service. If the commitment of assistance is sufficient to allow for the reconnection of service, absent the demand for a deposit, the utility must: a. accept the commitment of assistance and apply the payment to the account balance; andb. offer the customer the option of paying the deposit in three monthly installments consistent with the process described in section 7(F)(1) of this Chapter, with the exception that the first monthly payment cannot be due earlier than the due date of the first bill issued following the reconnection.3. the customer requests that service be reconnected at the same or different location after the customer was disconnected for unauthorized use or theft of services; or4. the customer had an unpaid account balance at the time the customer applied for service for which the utility was unaware because of fraud or material misrepresentation by the customer.D.Non-residential customersA utility may demand a deposit from an existing non-residential customer in lieu of disconnection authorized by Section 10 of this Rule or from a customer who was not required to pay a deposit as a precondition of service but has become an unacceptable credit risk as determined by the utility.
E.Amount of deposit1.Residential applicants and customersA utility cannot demand a deposit which is more than the two highest consecutive billing periods incurred within the previous 12-month period at that location. The amount of the deposit for a location with no previous usage history with the utility cannot exceed the two highest consecutive bills of the utility's other residential locations whose usage is similar or expected to be similar.
2.Non-residential applicants and customersA utility cannot demand a deposit which is more than the amount reasonably anticipated to be due for service for the two highest billing periods expected within a 12-month period.
F.Payment of deposits1.Residential applicants and customersA utility must provide residential applicants and customers the option of either paying the deposit in full or entering a payment arrangement on the deposit amount that allows payment in at least three installments: 50% payable upon the determination that the deposit is required; 25% payable 30 days after the determination; and 25% payable 60 days after the determination.
a. A utility may demand full payment of the deposit amount when an applicant requests service and the applicant enters into a payment arrangement for an unpaid account balance at the same time.b. If a customer requests reconnection following disconnection for nonpayment, the customer may elect one of the payment options according to Section 12. c. A utility may negotiate payment of the deposit over a longer period as the utility determines appropriate.d. Guarantee instead of deposit. A utility must accept a third-party guarantee agreement instead of a cash deposit for a residential customer if the guarantor is a customer whose account is not in arrears at the time the deposit is requested. The guarantee agreement must be in writing, contain the disclosures required by this Section, and be limited to a specific time period. The utility may cancel the guarantee agreement if the guarantor incurs an arrearage with the utility that is more than 60 days old, and a guarantor may cancel the agreement upon at least 30 days written notice to the utility and the customer. If the guarantee is cancelled or the term has expired, the utility can demand a deposit from the customer. If a deposit is not paid or if a payment arrangement is not established within 30 days after the notice that requires payment of a deposit is provided, a utility may begin further collection procedures.2.Non-residential applicants and customersThe utility must offer non-residential applicants and customers the option of paying the required deposit in at least two equal installments. Deposits may be in any of the following forms, listed in order of preference:
b. Irrevocable bank letter of credit.d. Third-party guarantee instrument acceptable to the utility.e. Other security instrument acceptable to the utility.G.DisclosureWhen a utility demands a deposit, it must send or deliver a written disclosure to an applicant or customer within three business days after the demand is made. If the disclosure is not provided within the three-day period, the utility cannot collect the deposit from the customer. If the disclosure was not provided within the three-day period and customer has already paid the deposit, the deposit must be refunded to the customer. A copy of the disclosure must also be provided to any guarantor within the same time period. The disclosure must contain:
1. the date that the utility demands a deposit;2. the amount of the deposit;3. the due date and payment options for the deposit, including the option of a third-party guarantor for residential applicants and customers; and4. the procedure by which the applicant or customer can dispute the deposit requirement or deposit amount.H.InterestA utility must pay interest on deposits according to the provisions of Chapter 870 of the Rules of the Commission.
I.Retention and refund1.RefundA utility must refund a deposit in any of the following circumstances:
a. When a residential or small non-residential customer establishes good credit. If a residential customer pays all bills or makes all payments pursuant to an established payment arrangement by the due date for 12 consecutive months and the customer does not have a remaining account balance at the end of the 12-month period, the utility must refund the deposit, including accrued interest, within 30 days after the 12th bill is paid. If a small non-residential customer pays all bills or makes all payments pursuant to an established payment arrangement by the due date for 5 consecutive years and the small non-residential customer does not have a remaining account balance at the end of the 5 year period, the utility must refund the deposit, including accrued interest, within 30 days after the final bill of the 5 year period is paid. Utilities may retain deposits collected from non-residential customers that do not meet the definition of small non-residential customers for so long as the customer remains a customer.b. When a residential or non-residential customer has been disconnected. The utility then must apply the deposit, including accrued interest, to the account balance for utility service and refund the remainder within 30 days or with the final bill, whichever is later. A transfer of service from one location to another is not considered disconnection for the purpose of this paragraph.c. When a residential or non-residential customer closes an account. When a customer closes an account, the utility may apply the deposit to an existing account balance or other accounts for that customer that were closed within the past six years that were not fully paid when the account was closed. The utility must then refund any remaining deposit amount, including accrued interest, to the customer within 60 days of the customer closing the customer's account.d. When a residential customer substitutes a third-party guarantor. If a guarantor is provided in accordance with the provisions of Section 7(F)(1)(d) above, the utility must refund the deposit, including accrued interest, up to the limits of the guarantee.e. Earlier refund. The utility may choose to refund a deposit, including accrued interest, any time earlier than this subsection requires.2.Transfer of serviceWhen a customer transfers service from one location to another location, an existing deposit may be transferred to the new location and must be
adjusted according to the anticipated usage at the new location. If the anticipated usage at the new location is lower than the old location, the utility must either refund the difference to the customer or must apply the difference to the customer's account as a credit. If the amount of the refund is equal to or less than the cost the utility will incur to issue a refund check to the customer, the utility may credit the customer's account. If the refund is greater than the cost to cut a check, the utility shall send the customer a check for the refund amount or, if the customer so chooses, the refund may be applied as a credit to the customer's account. If the usage is higher at the new location, the utility may require the customer to pay a deposit reflecting the incremental usage amount. In this instance, the incremental amount must be collected in accordance with Section 7(F) above. The transfer and any subsequent adjustment must be made within 60 calendar days of the date the service is transferred.
65-407 C.M.R. ch. 815, § 7