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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> Elk River Municipal Utilities Commission Jennie Nelson—Customer Service Manager <br /> John Dietz—Chair <br /> Al Nadeau—Vice Chair <br /> Daryl Thompson—Trustee <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> June 16, 2015 2.5 <br /> SUBJECT: <br /> Customer Deposit Policy <br /> BACKGROUND: <br /> Elk River Municipal Utilities adopted a Customer Deposit Policy in 2010 to protect its ratepayers <br /> from customers who default on their accounts. <br /> DISCUSSION: <br /> One of the aspects of the Deposit Policy is a collection of credit history data on residential <br /> customers. To stay consistent in the office, staff has decided to adopt Online Utility Exchange's <br /> model to determine if a customer should be required to submit a deposit or not. Staff is proposing <br /> that any customer that has a credit score that falls above 90 percent probability of non-default <br /> would be required to pay a deposit. Currently the policy reads that a score above 68 percent <br /> probability of non-default would be required to pay a deposit. The credit check process returns a <br /> color coded probability. Anything below 68 percent is red, and anything 69 percent to 90 percent <br /> is yellow. The yellow area is"discretionary"and in the best interest of the utilities, this yellow <br /> category should be awarded a deposit. <br /> ACTION REQUESTED: <br /> Staff is seeking approval from the commission to move forward with the changes to the <br /> Customer Deposit Policy. <br /> ATTACHMENTS: <br /> • Customer Deposit Policy <br /> • Credit Check Examples <br /> EN rlIWERED D 1 Page 1 of 1 ATURE <br /> Reliable Public Power Provider P 0 W E 0.E D T O S E R V E <br /> 62 <br />