16 Tex. Admin. Code § 24.159 - Service Applicant and Customer Deposit
(a) Deposit on Tariff. Deposits may only be
charged if listed on the utility's approved tariff.
(1) Residential service applicants. If a
residential service applicant does not establish credit to the satisfaction of
the utility, the residential service applicant may be required to pay a deposit
that does not exceed $50 for water service and $50 for sewer service.
(2) Commercial and Nonresidential service
applicants. If a commercial or nonresidential service applicant does not
establish credit to the satisfaction of the utility, the service applicant may
be required to make a deposit. The required deposit shall not exceed an amount
equivalent to one-sixth of the estimated annual billings.
(3) Commercial and Nonresidential Customers.
If actual monthly billings of a commercial or nonresidential customer are more
than twice the amount of the estimated billings at the time service was
established, a new deposit amount may be calculated and an additional deposit
may be required to be made within 15 days after the issuance of written
notice.
(b) Customers not
disconnected. Current customers who have not been disconnected for nonpayment
or other similar reasons in §
24.167 of this title (relating to
Discontinuance of Service) shall not be required to pay a deposit.
(c) Applicants 65 years of age or older. No
deposit may be required of a residential service applicant who is 65 years of
age or older if the applicant does not have a delinquent account balance with
the utility or another water or sewer utility.
(d) Interest on deposits. Each utility shall
pay a minimum interest on all customer deposits at an annual rate at least
equal to a rate set each calendar year by the Public Utility Commission of
Texas in accordance with the provisions of Texas Civil Statutes, Article 1440a.
Payment of the interest to the customer shall be made annually if requested by
the customer, or at the time the deposit is returned or credited to the
customer's account. Inquiries about the appropriate interest rate to be paid
each year a deposit is held may be directed to the commission.
(e) Landlords/tenants. In cases of
landlord/tenant relationships, the utility may require both parties to sign an
agreement specifying which party is responsible for bills and deposits. This
agreement may be included as a provision of the utility's approved service
application form. The utility shall not require the landlord to guarantee the
tenant's customer deposit or monthly service bill as a condition of service.
The utility may require the landlord to guarantee the payment of service
extension fees under the utility's approved tariff if these facilities will
remain in public service after the tenant vacates the leased premises. If the
landlord signs a guarantee of payment for deposits or monthly service bills,
the guarantee shall remain in full force and effect until the guarantee is
withdrawn in writing and copies are provided to both the utility and the
tenant.
(f) Reestablishment of
credit or deposit. Every service applicant who has previously been a customer
of the utility and whose service has been discontinued for nonpayment of bills,
meter tampering, bypassing of meter or failure to comply with applicable state
and municipal regulations or regulations of the utility shall be required,
before service is resumed, to pay all amounts due the utility or execute a
deferred payment agreement, if offered, and may be required to pay a deposit if
the utility does not currently have a deposit from the customer. The burden
shall be on the utility to prove the amount of utility service received but not
paid for and the reasonableness of any charges for such unpaid service, as well
as all other elements of any bill required to be paid as a condition of service
restoration.
(g) Records of
deposits.
(1) The utility shall keep records
to show:
(A) the name and address of each
depositor;
(B) the amount and date
of the deposit;
(C) each
transaction concerning the deposit; and
(D) the amount of interest earned on customer
deposit funds.
(2) The
utility shall issue a receipt of deposit to each service applicant or customer
from whom a deposit is received.
(3) A record of each unclaimed deposit shall
be maintained for at least seven years, during which time the utility shall
make a reasonable effort to return the deposit or may transfer the unclaimed
deposit to the Texas Comptroller of Public Accounts. If not already
transferred, after seven years, unclaimed deposits shall be transferred to the
Texas Comptroller of Public Accounts.
(h) Refund of deposit.
(1) If service is not connected, or after
disconnection of service, the utility shall promptly and automatically refund
the service applicant's or customer's deposit plus accrued interest or the
balance, if any, in excess of the unpaid bills for service furnished. The
utility may refund deposits plus accumulated interest at any time prior to
termination of utility service. The utility's policy for refunds to current
customers must be consistent and nondiscriminatory.
(2) When a residential customer has paid
bills for service for 18 consecutive billings without being delinquent, the
utility shall promptly refund the deposit with interest to the customer either
by payment or credit to the customer's bill. Deposits from customers who do not
meet this criteria may be retained until service is terminated.
(i) Transfer of service. A
transfer of service from one service location to another within the service
area of the utility shall not be deemed a disconnection within the meaning of
this section, and no additional deposit may be demanded unless permitted by
this subchapter.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.