There are different utility deposit rules for general customers and low-income customers. 

General customers

The utility may ask for a deposit from a general customer or applicant if:

• The current customer has paid late four times in the past 12 months and has an undisputed past due balance for more than 30 days;
• The applicant has a low credit score; 
• The applicant has a final unpaid bill;
• The applicant previously was disconnected for nonpayment of a bill for the same class and type of service;
• The utility company has evidence of the applicant or customer tampering with or changing the equipment; or
• There is evidence of Payment Avoidance by Location (PAL).

PAL occurs when there is a new application for service at a location where

• The former customer who was disconnected for non-payment still resides, and
• The new applicant resided at that address during the time the previous customer’s debt built up.

Deposit amount 

Usually, the amount of the deposit cannot be more than 1/6 of the estimated cost for a year of service. The utility company usually spreads the deposit out so that you pay it in installments. For example:

• Payment of 1/3 of the deposit with the first bill; and
• Remaining 2/3 to be paid in equal installments in next two bill statements.

If there is evidence of PAL, the utility company can ask you to pay the deposit in one full payment before service is activated.

Low-income customers

The utility may not require a deposit from a low-income customer for

• Late payments and past due over 30 days, or
• Low credit scoring.

The utility can ask for a deposit from a low-income applicant or current customer if:

• The applicant has a final unpaid bill that is greater than 20% of that applicant’s average annual billing from the last calendar year; 
• The applicant previously was disconnected for nonpayment of a bill for the same class and type of service;
• The utility has proof that the applicant or current customer benefited from tampering; or
• There is evidence of Payment Avoidance by Location (PAL).

Deposit amount

The amount of the deposit cannot exceed 1/6 of the estimated cost for a year of service. The deposit amount should be paid in 5 installments:

• Payment of 1/5 shall be paid within a minimum of 12 days after the deposit notice; and
• Payment of the remaining 4/5 to be paid in equal installments over the next four billing cycles.

Written notification for a deposit

The utility company must request a deposit from the applicant or customer in writing. The notice must include the following:

• Reason for the deposit;
• Amount of the deposit;
• How the deposit is calculated;
• Payment requirements;
• Schedule of payments for the deposit;
• Date by which entire deposit must be paid;
• That the deposit amount can be adjusted if the annual charges for the customer substantially change;
• Refund policy;
• Interest policy;
• Deposit policy for qualified low-income households;
• How to demonstrate low-income qualifications; and
• Availability and contact information for the Commissioner's Consumer Services Division in the event of a dispute.

Getting a refund of your deposit from a utility company

The utility company shall refund your deposit with interest, after 12 consecutive months if:

• You have fewer than four late payments;
• No disconnections for non-payment;
• No tampering; and 
• No past due balance is owed at the time of the deposit refund. 

If you stop your service, the utility company must give you a refund of your deposit with interest, minus the unpaid portion of your bill, at the same time as your final bill.

If your service is disconnected for non-payment, any refund due must be paid 30 days after disconnection. The utility company should give a check to refund deposits unless you request a credit to your account. However, if your refund amount does not exceed 125% of your average monthly bill, the utility may issue the refund by a credit to your account.