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607 - Security Deposits

 

I.          OBJECTIVE

To establish a policy for collecting security deposits from member-consumers.

II.         CONTENT

A.The Cooperative shall require a $150.00 security deposit from all new member-consumers.  If the deposit is found to be inadequate an additional deposit may be required.  For commercial or industrial accounts, a security deposit based on a two month estimate of their bill shall apply.

 

1.Members electing to participate in the prepaid service program shall not be required to maintain a security deposit.  After enrolling in the program, any existing security deposit shall be credited to their account.

 

2.Members electing to leave the prepaid service program shall be subject to the provisions of this policy.

 

B.A security deposit shall automatically be refunded, as a credit to the member-consumers account, when one of the following conditions are met:

1.   Upon receipt of a confirmation of satisfactory credit from the member-consumer’s most recent power supplier or the credit bureau if the member-consumer has no past history with a power supplier.

a.Satisfactory credit means that within the last year of service the member-consumer has not had his service disconnected for non-payment of a bill rendered, has not been issued a disconnect notice, has not had more than three late payment charges applied to their account and has no outstanding debt with their previous power supplier.

2.   After satisfactory credit has been established with the Cooperative.

a.   Satisfactory credit means that within the last year of service the member-consumer has not had his service disconnected for non-payment of a bill rendered, has not been issued a disconnect notice, has not had more than three late payment charges applied to their account and has no outstanding debt with the Cooperative.

C.The service of any member-consumer who fails to comply with the security deposit requirements within a specified time shall be subject to disconnection.

D.No interest shall be paid on security deposits.

III.       RESPONSIBILITY

The General Manager is responsible for administering this policy and for recommending to the Board any changes deemed necessary.

EFFECTIVE DATE:   June 30, 2016

DATE ADOPTED:     March 28, 2000

DATE REVISED:       September 25, 2002

DATE REVISED:       December 18, 2008

DATE REVIEWED:   December 20, 2012

DATE REVISED:       March 20, 2014

DATE REVISED:       June 30, 2016

ATTESTED:   __________________________________

Chris Hofer, Secretary