(a) Initial Deposit from Applicant Subject to these rules, a residential applicant shall not be required to pay a deposit:
- if the residential applicant has been a customer of any utility for the same kind of service within the last two years and is not delinquent in payment of any such utility service account, and during the last 12 consecutive months of service did not have more than one occasion in which a bill for such utility service was paid after becoming delinquent and never had service disconnected for nonpayment; applicants are encouraged to obtain a letter of credit history from their previous utility, and utilities are encouraged to provide such information with final bills.
- if the residential applicant demonstrates a satisfactory credit rating by appropriate means, including, but not limited to, the production of generally acceptable credit cards, letters of credit reference, the names of credit references which may be quickly and inexpensively contacted by the utility, or ownership of substantial equity; or
- if the residential applicant furnishes in writing a satisfactory guarantee to secure payment of bills for the service required
- unless otherwise agreed to by the guarantor, the guarantee shall be for the amount of deposit the utility would normally seek on the applicant’s account. The amount of guarantee shall be clearly indicated on any documents or letters of guarantee signed by the guarantor;
- when the customer has paid bills for service for 12 consecutive residential billings without having service disconnected for nonpayment of bills and without having more than two occasions in which a bill was delinquent, and when the customer is not delinquent in the payment of current bills, the utility shall void and return any documents or letters of guarantee placed with the utility to the guarantor.
(b) Initial Deposit from Applicant 65 or older
All applicants for permanent residential service who are 65 years of age or older will be considered as having established credit if such applicant does not have an outstanding account balance within the utility or another utility for the same utility service which accrued within the last two years. No cash deposit shall be required of such applicant under these conditions.
(c) Initial Deposit from Customer
An initial deposit may not be required from residential customers unless the customer has more than one occasion during the last 12 consecutive months of service in which a bill for utility service was paid after becoming delinquent or if the customer’s service was disconnected for nonpayment. Such deposit may be required to be made within 10 days after issuance of written termination notice and requested deposit. In lieu of initial deposit, the customer may elect to pay the current bill by the due date of the bill, provided the customer has not exercised this option in the previous 12 months. The customer may furnish in writing a satisfactory guarantee to secure payment of bills in lieu of cash deposit.
(d) Additional Deposit
If actual billings of a commercial customer are at least twice the amount of the estimated billings, and a suspension notice has been issued on a bill within the previous 12-month period, a new deposit may be required to be made within 10 days after issuance of written notice of termination and requested additional deposit. If actual billings of a residential customer are at least twice the amount of the estimated billings after two billing periods, and a suspension notice has been issued on a bill within the previous 12-month period, a new deposit may be required to be made within 15 days after issuance of written notice of termination and requested additional deposit. In lieu of additional deposit, the customer may elect to pay the current bill by the due date of the bill, provided the customer has not exercised this option in the previous 12 months.
(e) Amount of Deposit
The required deposit shall not exceed an amount equivalent to one-sixth of the estimated annual billing.
(f) Deposit Interest
Each utility which requires deposits to be made by its customers shall pay a minimum interest on such deposits at an annual rate approved by the Public Utility Commission of Texas. If a refund of deposit is made within 30 days of receipt of deposit, no interest payment is required. If the utility retains the deposit more than 30 days, payment of interest shall be made retroactive to the date of deposit.
- Payment of the interest to the customer shall be annually if requested by the customer, or at the time the deposit is returned or credited to the customer’s account.
- The deposit shall cease to draw interest on the date it is returned or credited to the customer’s account.
(g) Refund of Deposit
- If service is not connected, or after disconnection of service, the utility shall promptly and automatically refund the customer’s deposit plus accrued interest or the balance, if any, in excess of the unpaid bills for service furnished. A transfer of service from one premise to another within the service area of the utility shall not be deemed a disconnection within the meaning of these sections, and no additional deposit may be demanded unless permitted by these sections.
- When the customer has paid bills for service for 12 consecutive residential billings or for 24 consecutive commercial or industrial billings without having service disconnected for nonpayment of bill and without having more than two occasions in which a bill was delinquent, and when the customer is not delinquent in the payment of the current bills, the utility shall promptly and automatically refund the deposit plus accrued interest to the customer in the form of cash or credit to a customer’s bill, or void the guarantee. If the customer does not meet these refund criteria, the deposit and interest may be retained in accordance with subsections (b), (d), (e), and (f) of Deposit Policy.