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5.1. ERMUSR 05-08-2012
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5.1. ERMUSR 05-08-2012
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Management's Discussion and Analysis -Continued <br />Water and Electric Rates -Continued <br />Water -The Utilities' latest increase in residential and commercial rates was effective January 2009. The rates did not change ft~r <br />2010, 201 I, or 2012, per a rate study review. The monthly base charge for residential customers is $7.50 per month. In addition <br />[o [he base charge, the Utilities curtently charges its residential customers $1.50 per 1,000 gallons up to 9,000 gallons, $3.50 per <br />1,000 gallons between 9,000 gallons and 15,000 gallons, and $4.00 per 1,000 gallons for usage above 15,000 gallons. <br />Commercial customers base charges are based upon meter size, from $9.00 to $95.00. An ircigation meter is $40.00 for every <br />month the meter is utilized. There is also a charge per thousand gallons, the same tiers as the residential rates of $1.50, $3.50, and <br />$4.00, except [he graduation from the lower tier to [he higher tier(s) is calculated based on previous consumption. <br />Certain other rates may be offered for conservation incentive purposes. The Utilities' offer a Senior Citizen rate as well. <br />The Utilities requires payment of all utility bills to be paid by the due date stated on the monthly bill. A [en percent penalty is <br />assessed for payments no[ received by the due date. The Utility may discontinue service of a customer not complying with [he <br />disconnect policy of [he Utility after receiving a written disconnect notice. Residential and Commercial/Industrial single phase <br />Customers that have their service discontinued will be charged a minimum of $50.00 to have their service reconnected. <br />Commercial/Industrial three phase customers that have their service discontinued will be charged a minimum of $150.00 to have <br />[heir service reconnected. There are no reconnections after 3:30pm and payments for reconnection are not accepted at [he <br />property site; payments must be made prior to dispatching reconnection Customers can come in ro the office between [he hours <br />of 8:OOam and 3:OOpm to make the payment by cash, money order or credit card; or pay online or by phone with a credit card. <br />The Utilities abides by the Cold Weather Rules. <br />Deposit Policy <br />Per our Deposit Policy, the Utility collects social security numbers from new accounts and utilizes a credit risk assessment tool <br />called "Online Utility Exchange" to determine if a deposit is necessary as a proactive measure [o try and reduce uncollectible <br />accounts. The amount of the deposit required will depend on the risk identified with the customer. For residential customers, if <br />there is a 68 percent or higher probability of non default and no negative history (no disconnection for non-payment or late <br />payments two or more times within 12 months) there is no deposit required. If there is a lower than 68 percent probability of non <br />default, a deposit appropriate to the services supplied will be required before utility service will be extended. Residential deposit <br />amounts are $100 for apartments, $100 for homes with water and sewer, $150 for homes with electric only services, and $250 for <br />homes with all services (electric, water, and sewer). <br />For commercial and industrial customers, a service agreement would need to be signed [hat identifies the guarantor of their <br />business and the guarantor's social security number. A deposit of 2 times the estimated highest monthly bill will be required, with <br />a minimum deposit of $250. The deposit shall be in the form of a cash deposit, personal payment guarantee, or an irtevocable <br />letter of credit. The irrevocable letter of credit will be renewed as required and failure to do so will result in a charge equal to the <br />amount of the letter of credit applied to the monthly utility bill. <br />Deposits will be retained until the account is closed. The deposit will be returned to the customer within 45 days oftermination of <br />service, provided that [he customer has paid in full all amounts due on the account. The appropriate interest will be applied to the <br />account per state statutes. <br />IS <br />
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