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Elk River Municipal Utilities <br /> Customer Deposit Policy <br /> In order to protect its ratepayers from customers who default on their accounts, the Elk <br /> River Municipal Utilities(ERMU)has adopted this Customer Deposit Policy. <br /> Deposit Required: All residential, commercial and industrial customers of ERMU will <br /> be required to submit a deposit in the form set forth below subject to the exceptions set <br /> forth below. In addition, customers who have been disconnected by ERMU for non- <br /> payment of amounts due shall be required to submit a deposit before service will be <br /> reconnected. Failure to submit the required deposit when due shall be cause for ERMU <br /> to immediately terminate service. <br /> Amount of Deposit: The amount required to be deposited for residential services shall <br /> be: <br /> $100 for apartments <br /> $100 for water and sewer service <br /> $150 all electric service <br /> $250 for all services <br /> The amount required to be deposited for commercial services shall be equal to two times <br /> ERMU's estimate of the customer's highest monthly utility bill, at a minimum of$250. <br /> Form of Deposit: The deposit shall be in the form of a cash deposit or an irrevocable <br /> letter of credit. If in the form of an irrevocable letter of credit, the letter of credit shall be <br /> renewed at least 30 days prior to its expiration. Failure to renew a letter of credit will <br /> result in the letter of credit being drawn on and the cash recovered from the letter of <br /> credit being held by ERMU as a cash deposit. If ERMU is not able to draw on the letter <br /> of credit, the customer shall submit a cash deposit prior to expiration of the letter of <br /> credit. Failure to submit the required deposit shall be cause for immediate termination of <br /> service by ERMU. <br /> Receipt for Deposit: ERMU shall furnish the customer with a written receipt at the time <br /> a deposit is made. The receipt shall specify the conditions pursuant to which the amount <br /> of the deposit will be diminished upon return of the deposit to the customer. <br /> Return of Deposit: Any deposit received by ERMU shall be returned to the customer <br /> within 45 days of termination of service,provided that the customer has paid in full all <br /> amounts due on the account. If the customer has not paid in full within 30 days of the <br /> termination of service, the deposit will be applied to any outstanding amounts owed by <br /> the customer to ERMU. If the deposit exceeds the amount due, the balance will be <br /> returned to the customer. If the deposit is not sufficient to cover the amount due, the <br /> customer shall remain liable to ERMU for the balance and shall pay the balance due <br /> within 15 days of notice from ERMU. ERMU reserves the right to use reasonable legal <br /> means to collect amounts due. <br /> 1 <br /> 63 <br />