Residential Security Deposits
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Pulaski Electric System will require security deposits according to the terms specified below:
A. An application for service must be completed and a security deposit of not lessthan $150 nor more than 2 times the highest bill must be paid to obtainelectric service from PES. The purpose of the electric deposit is for security purposes and it will not be applied to a monthly bill. Payment may be made by cash or check. In lieu of a deposit, PES will accept a credit scoring deemed satisfactory and acceptable to PES, obtained from a credit reporting agency selected by PES.
B. Additionally,a deposit may not be required for any customer who currently has service with Pulaski Electric System and who has not had any late payments, delinquent notices, disconnections, or bad checks within a two-year period immediately preceding the customer’s application for new service.
C. If a customer has previously had an account in bad debts with PES, and the amount of the bad debt exceeds $150, the customer must pay a deposit equal to two times the highest bill, but not less than $300. If a billing history is not available for the said address,a deposit equal to two times the minimum charge will be required.
D. Any accrued interest will be paid at the time the security deposit is refunded or at the time it is applied against the final bill. However, upon demand by the customer, interest that has accrued through the anniversary date of the deposit will be paid anytime duringthe following year.
E. Upon final termination of service, any retained cash deposit and accrued interest, if applicable, will be applied against any unpaid bills. If any balance remains after such application, said balance shall be refunded to the customer. The annual rate of interest shall be simple interest paid by local banks on passbook accounts and change from time to time as needed.
F. PES may refund the deposit to the customer after three years of continuous service,provided the customer has made no payments after the last date for payment, had no returned checks with PES and has not paid more than one late payment in the last 13 months. Upon the customer’s request, and at PES’s sole discretion, if the customer paid a higher deposit due to a bad debt, the customer’s deposit may be reduced to not less than $150 after 13 months of continuous service, provided the customer has made no payments after the last date for payment, had no returned checks with PES and has not paid more than one late payment in the last 13 months.
G. PES may require any customer to establish or increase his/her deposit if the customer becomes a payment risk, declares bankruptcy, and/or it has been determined by PES that fraudulent or unauthorized use of service or equipment tampering has taken place. Inflation, change of address, or increased use of service may also require the deposit level to be raised not less than the maximum required under this policy.
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