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This entry was published on 2014-09-22
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Consumer deposits
Public Service (PBS) CHAPTER 48, ARTICLE 6
§ 117. Consumer deposits. Except as the right to require deposits is
further limited by section thirty-six of this chapter, a gas
corporation, an electric corporation, a gas and electric corporation, a
water corporation, a steam corporation, a telegraph corporation, a
telephone corporation or a municipality rendering equivalent utility
services may, unless prohibited by the commission, require any person to
whom such corporation or municipality shall supply gas, electric, water,
steam, telegraph or telephone services to deposit a reasonable sum of
money according to the estimated quantity of such services necessary to
supply the same for two calendar months, to secure payment for such
services actually rendered, or for the rental of fixtures, instruments
and facilities actually supplied, but every such corporation and
municipality shall allow to every such depositor interest at a rate per
annum to be prescribed from time to time, at least annually, by the
commission in the light of current economic conditions and current
charges paid for other moneys borrowed by such corporation or
municipality, and the expenses incurred by such corporation or
municipality in obtaining, handling and returning or crediting the sum
deposited, on the sum or sums so deposited, payable upon the return of
the deposit or at earlier intervals as hereinafter prescribed. Whenever
such deposit has been held for a period of one year, the interest
accrued on such deposit shall be credited to the depositor on the first
billing for utility service rendered after the next succeeding first day
of October. If the depositor was not delinquent in the payment of any
bill in such one year period, the deposit shall be refunded promptly at
the end thereof, but without prejudice to the right to require a deposit
thereafter in the event of a delinquency or where it can be shown that
the financial condition of a business customer is such that it is likely
that the customer may default in the future, and to retain such deposit
for a prudent period; except that subject to such regulations as the
commission may establish, if the deposit is for utility service rendered
to a business, the deposit may be retained for a prudent period beyond
such a one year period. No provider of utility services shall require of
its customer within its service area a new security deposit where such
customer was not required to post a security deposit or had a security
deposit returned pursuant to this section and such customer establishes
a new residence and continues service with the same provider of utility