Section R. 460.111 - General deposit conditions for residential customersRule 11.
(1) All of the following apply to payment of deposits for residential service: (a) For a primary residence, a deposit that is required under these rules due to a prior outstanding account that is not in dispute or a shutoff for nonpayment shall not be more than twice the average monthly bill for the premises or, if the current customer's consumption history for the premises is unavailable, twice the utility's system average monthly bill for residential service.(b) For seasonal properties, a deposit that is required under these rules due to a prior outstanding account that is not in dispute or a shutoff for nonpayment shall not be more than twice the average monthly bill for peak season usage.(c) A utility shall offer an eligible low-income customer the option of paying a deposit required under these rules in 2 monthly installments.(2) Whenever a utility requests a deposit because of an unpaid account for residential service incurred in another household member's name for a time when the customer and the other person shared a residence, as described in R 460.109(1)(h), the utility shall provide the customer with notice of the reason for the request, the commission rule that allows the utility to make the request, and the process for refuting the action.(3) A deposit that is required during the heating season due to a shutoff of service for nonpayment within the past 12 months, shall not exceed the utility system average monthly natural gas bill for natural gas residential service or the utility system average monthly electric bill for electric residential service. If the customer receives natural gas and electric residential service from a combination utility, the deposit shall not exceed the total of the utility's combined system average monthly natural gas and electric bills.(4) A deposit that is required as a condition of providing, restoring, or continuing residential service due to unauthorized use of utility service shall not be more than either of the following: (a) Four times the average peak season monthly bill for the premises if the customer's consumption history for the premises is available.(b) Four times the utility's system average peak season monthly bill for residential service if the customer's consumption history for the premises is unavailable.(5) The utility may also require payment of the delinquent account and approved charges as a condition of providing, restoring, or continuing residential service if the account is in the customer's, or applicant's name, is delinquent, owed to the utility, and accrued within the last 6 years.(6) Unless the applicant misrepresents his or her identity or credit standing or fails to provide positive identification information, if requested, at the time of applying for residential service, the utility shall not assess a deposit if the customer has been receiving service for 30 days or more.(7) Except in the case of unauthorized use of utility service, if the utility shuts off residential service for nonpayment, the utility shall not require a deposit as a condition of restoring service unless the utility offered the customer, prior to shutoff for nonpayment, the opportunity to enter into a payment plan as provided in Part 10 of these rules, R 460.154 to R 460.159.(8) A utility shall pay interest at the rate of 5% per annum on all deposits. A utility shall credit interest semiannually to the residential service account of the customer or pay it upon the return of the deposit, whichever occurs first.(9) The customer's credit shall be established and the utility shall return the deposit and accrued interest upon satisfactory payment by the customer of all proper charges for residential service for a period of 12 consecutive months. A utility may retain the deposit assessed because of unauthorized use of utility service for a period of 36 months and shall refund the deposit upon satisfactory payment of the final 12 months' charges.(10) For purposes of this rule, payment is satisfactory if it is made before the issuance of a notice of shutoff of service for nonpayment that is not in dispute or within 5 days after the issuance of the next succeeding monthly bill, whichever is sooner.(11) For customers terminating residential service, if the utility has not already returned the deposit, the utility shall credit the deposit, with accrued interest, to the final bill. For customers continuing to receive service, a utility may apply the deposit against an existing arrearage that is not in dispute. The utility shall promptly return the balance to the customer.(12) A utility shall maintain a detailed record of all deposits received for residential service. The record shall show all of the following information: (a) The name and address of the depositor and either the applicant or customer.(b) The location served by the utility at the time of making the deposit and each successive location while the deposit is retained.(c) The amount and date of the deposit.(d) The dates the utility paid interest and the amounts.(e) Each transaction concerning the deposit.(f) The terms and conditions governing the return of the deposit.(13) A utility shall provide the applicant or customer with a receipt for the deposit and instructions regarding how a person who is entitled to the return of his or her deposit may obtain the deposit.(14) A utility shall make reasonable efforts to locate applicants or customers with unclaimed deposits or credits.(15) A utility shall apply deposit standards uniformly to all applicants and customers. A utility shall provide to any person who objects to paying a deposit information on the process to contest the deposit requirement.Mich. Admin. Code R. 460.111
2007 AACS; 2017 MR 22, Eff. 12/11/2017