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Elk River Municipal Utilities <br />Customer Deposit Policy <br />In order to minimize the risk of collecting payments from customers who default on their accounts, the <br />Elk River Municipal Utilities (ERMU) has adopted this Customer Deposit Policy. The amount of deposit <br />required will depend on the risk identified with the customer. To assess this risk, the ERMU will utilize <br />available known credit history through on -line resources and their applicable nationally recognized <br />scoring methods (such as FICO or Beacon) and/or ERMU past experience with the customer. <br />For residential customers, the risk of nonpayment will be assessed as follows: <br />A: If credit score falls above 68% probability of non default and no negative history (disconnection for <br />non- payment or late payment 2 times in 12 months) with the ERMU, no deposit is required. Failure to <br />provide a social security number will result in the required deposit. <br />B: For all others, a deposit of 2 times estimated average monthly utility bill (electric, water, sewer) will <br />be required before utility service will be extended. With good credit history for a period of 3 years, the <br />deposit will be credited to the customer's utility account. The appropriate interest will be applied to the <br />monetary deposit per State statutes <br />For commercial and industrial customers, a service agreement would need to be signed that identifies <br />the guarantor of their business and the guarantor's social security number. A deposit of 2 times the <br />estimated monthly bill will be required. The deposit shall be in the form of a cash deposit, personal <br />payment guarantee, or an irrevocable letter of credit. The irrevocable letter of credit will be renewed as <br />required and failure to do so will result in an established penalty applied to the monthly utility bill. With <br />good payment history for a period of 3 years, the deposit will be credited to the customer's account or <br />personal guarantee/ letter of credit will be returned to customer. <br />For residential, commercial or industrial customers who are disconnected for non-payment, a 2 month <br />estimated utility bill deposit will be required before reconnection. <br />