Commercial Security Deposit

A.    A security deposit approximately equal to twice the highest monthly bill over the previous twelve months must be paid in advance to obtain electric service.  For new facilities or uses, the required deposit will be based on the contract demand and/or the estimated electrical usage.  Payment may be made by cash or check.  In lieu of a paid-in-full monetary deposit, PES will accept one of the following:

1.    An “Irrevocable Letter of Credit” for the amount of the deposit.  If the letter is for one year, it is the responsibility of the customer to see that it is renewed each year for a period of five years.  The Letter of Credit must be renewed 60 days prior to expiration.

2.    A “Customer Guaranty of Deposit” from an existing customer of PES with at least a good payment history (no more than two late payments within the past 12 months, no terminations and no returned checks).  This option is available only for accounts under 250kW.  The guaranty must be for a five-year period and must state that, upon demand by PES, the guarantor will assume responsibility for any unpaid bills as set forth in the guaranty.


3.    A new PES customer with usage that is expected to average 250kW or above may elect to receive a weekly invoice for a maximum period of 15 months.  The weekly invoice, payable within five days, will be estimated with a month-end “true-up.”  During that period, the customer will be required to maintain a deposit equal to two weeks’ usage.  If the customer’s usage increases, so will the necessary deposit amount.  A $100 monthly administrative fee will be charged to customers using this program.   Within 60 days of the expiration of the 15-month period, the customer must make arrangements to secure the deposit through one of the other approved mechanisms.  Customers utilizing this deposit program may not participate in an “interruptible,” “market day” or other variable-based rate program.

4.    Existing PES customers with a good payment history (no more than two late payments within the past 12 months, no terminations and no returned checks) will be permitted to break their deposit amount into 12 equal monthly payments.  If the customer’s usage increases, so will the necessary deposit amount.

B.    Any existing customer with usage that averages 250kW or above over a 12-month period will be required to establish and maintain a deposit equal to twice the highest monthly bill to receive electric service.  If a customer has multiple meters serving the same facility, operation, or business unit, the usage of all the meters will be totaled to determine the deposit requirement.  Payment may be made by cash, check, or by using one of the security guaranties described in paragraph A.  IRS designated not-for-profits are exempt for this requirement.


C.    Upon final termination of service, any retained cash deposit and accrued interest, if applicable, will be applied against unpaid bills of the customer.  If any balance remains after such application, said balance shall be refunded to the customer.  Interest shall accrue after 90 days, retroactive to day one.  The annual rate shall be simple interest paid by local banks on passbook accounts and change from time to time as needed.

D.    Any accrued interest will be paid at the time the deposit is refunded or at the time it is applied against a final bill.  However, upon demand by the customer, interest which has accrued through the anniversary date of deposit will be paid at any time during the following year.

E.    Except for those customers specified in paragraph B above, PES may refund the deposit to a customer upon request after five years of continuous service, provided the customer has paid all bills during the last 13 months within the net payment period and has no returned check record with PES.

F.    PES may require a customer to establish or increase his deposit if he becomes a credit risk or if inflation or increased use of service has caused the deposit to be less than the minimum required under this policy.  Any customer who appears on the service termination list for nonpayment will be considered a credit risk.

G.    Governmental entities are exempt from the requirements of this policy.