4.2. ERMUSR 12-08-2015 - Laserfiche WebLink

Home Browse Search

)4''*-- Elk River Municipal Utilities A.6—Customer Deposit Policy 1.0 Policy In order to protect its ratepayers from customers who default on their accounts,the Elk River Municipal Utilities(ERMU)has adopted this Customer Deposit Policy. Deposit Required: All residential, commercial and industrial customers of ERMU will be required to submit a deposit in the form set forth below subject to the exceptions set forth below. In addition, customers who have been disconnected by ERMU for non- payment of amounts due shall be required to submit a deposit before service will be reconnected. Failure to submit the required deposit when due shall be cause for ERMU to immediately terminate service. Amount of Deposit: The amount required to be deposited for residential services shall be: $100 for apartments $100 for water and sewer service $150 all electric service $250 for all services The amount required to be deposited for commercial services shall be equal to two times ERMU's estimate of the customer's highest monthly utility bill, at a minimum of$250. Form of Deposit: The deposit shall be in the form of a cash deposit or an irrevocable letter of credit. If in the form of an irrevocable letter of credit,the letter of credit shall be renewed at least 30 days prior to its expiration. Failure to renew a letter of credit will result in the letter of credit being drawn on and the cash recovered from the letter of credit being held by ERMU as a cash deposit. If ERMU is not able to draw on the letter of credit,the customer shall submit a cash deposit prior to expiration of the letter of credit. Failure to submit the required deposit shall be cause for immediate termination of service by ERMU. Receipt for Deposit: ERMU shall furnish the customer with a written receipt at the time a deposit is made. The receipt shall specify the conditions pursuant to which the amount of the deposit will be diminished upon return of the deposit to the customer. 1 60