4.1 ERMUSR 08-10-2021 - Laserfiche WebLink

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ERMU Commission Policy – G.4j3 Customer Deposits ______________________________________________________________________________ ______________________________________________________________________________ Page 2 of 3 B. Commercial Customers The amount required to be deposited for commercial and industrial services shall generally be equal to two times ERMU’s estimate of the customer’s highest monthly utility bill. For commercial and industrial customers on the non-demand rate, the minimum deposit will be $250. For commercial customers on the demand electric rate, the minimum deposit will be $1,000. ERMU may increase or decrease the security deposit based on assessment of risk. 4.0 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. 5.0 RECEIPT FOR DEPOSIT At the time the deposit is made ERMU will furnish the customer with a written receipt specifying the conditions, if any, the deposit will be diminished upon return. 6.0 RETURN OF DEPOSIT Any deposit received by ERMU shall be returned to the customer within 45 days of termination of service, provided that the customer has paid in full all amounts due on the account. If the customer has not paid in full within 30 days of the termination of service, the deposit will be applied to any outstanding amounts owed by the customer to ERMU. If the deposit exceeds the amount due, the balance will be returned to the customer. If the deposit is not sufficient to cover the amount due, the customer shall remain liable to ERMU for the balance and shall pay the balance due within 15 days of notice from ERMU. ERMU reserves the right to use reasonable legal means to collect amounts due. 7.0 INTEREST ON DEPOSITS Interest shall be paid on all deposits in excess of $20 at the rate established by Minnesota Statutes, 325E.02 (b). ERMU may, at its option, pay the interest at intervals it chooses, but at least annually, by direct payment or as a credit on the customer’s account. 8.0 SUBMISSION OF AND EXCEPTIONS TO DEPOSIT REQUIREMENT A. Residential Customers Residential customers may submit the required deposit at the time service is requested, or have the deposit billed with the customer’s first bill for services provided. Failure to pay a 46