5.1. ERMUSR 03-09-2010 - Laserfiche WebLink

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Elk River Municipal Utilities PROPOSED Customer Deposit 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 shall be equal to two times ERMU's estimate of the customer's average monthly utility bill for electric service, and $100 for water and sewer service. 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. 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. Interest on Deposits: Interest shall be paid on all deposits in excess of $20 at the rate established by Minnesota Statutes. 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.