16 Tex. Admin. Code § 25.24 - Credit Requirements and Deposits
(a)
Credit requirements for permanent residential applicants.
(1) An electric utility may require a
residential applicant for service to establish and maintain satisfactory credit
as a condition of providing service.
(A)
Establishment of credit shall not relieve any customer from complying with the
electric utility's requirements for prompt payment of bills.
(B) The credit worthiness of spouses
established during shared service in the 12 months prior to their divorce will
be equally applied to both spouses for 12 months immediately after their
divorce.
(2) A
residential applicant can demonstrate satisfactory credit using any one of the
criteria listed in subparagraphs (A) through (C) of this paragraph.
(A) The residential applicant:
(i) has been a customer of any electric
utility for the same kind of service within the last two years;
(ii) is not delinquent in payment of any such
electric utility service account;
(iii) during the last 12 consecutive months
of service was not late in paying a bill more than once;
(iv) did not have service disconnected for
nonpayment; and
(v) is encouraged
to obtain a letter of credit history from the applicant's previous electric
utility, and electric utilities are encouraged to provide such information with
the final bill.
(B) The
residential applicant demonstrates a satisfactory credit rating by appropriate
means, including, but not limited to, the production of:
(i) generally acceptable credit
cards;
(ii) letters of credit
reference;
(iii) the names of
credit references which may be quickly and inexpensively contacted by the
electric utility; or
(iv) ownership
of substantial equity that is easily liquidated.
(C) The residential applicant is 65 years of
age or older and does not have an outstanding account balance incurred within
the last two years with the electric utility or another electric utility for
the same type of utility service.
(3) If satisfactory credit cannot be
demonstrated by the residential applicant using these criteria, the applicant
may be required to pay a deposit pursuant to subsection (c) of this
section.
(b) Credit
requirements for non-residential applicants. For non-residential service, if an
applicant's credit has not been demonstrated satisfactorily to the electric
utility, the applicant may be required to pay a deposit.
(c) Initial deposits.
(1) A residential applicant or customer who
is required to pay an initial deposit may provide the electric utility with a
written letter of guarantee pursuant to subsection (j) of this section, instead
of paying a cash deposit.
(2) An
initial deposit may not be required from an existing customer unless the
customer was late paying a bill more than once during the last 12 months of
service or had service disconnected for nonpayment. The customer may be
required to pay this initial deposit within ten days after issuance of a
written termination notice that requests such deposit. Instead of an initial
deposit, the customer may pay the total amount due on the current bill by the
due date of the bill, provided the customer has not exercised this option in
the previous 12 months.
(d) Additional deposits.
(1) An additional deposit may be required if:
(A) the average of the customer's actual
billings for the last 12 months are at least twice the amount of the original
estimated annual billings; and
(B)
a disconnection notice has been issued for the account within the previous 12
months.
(2) An electric
utility may require that an additional deposit be paid within ten days after
the electric utility has issued a written disconnection notice and requested
the additional deposit.
(3) Instead
of an additional deposit, the customer may pay the total amount due on the
current bill by the due date of the bill, provided the customer has not
exercised this option in the previous 12 months.
(4) The electric utility may disconnect
service if the additional deposit is not paid within ten days of the request,
provided a written disconnection notice has been issued to the customer. A
disconnection notice may be issued concurrently with either the written request
for the additional deposit or current usage payment.
(e) Deposits for temporary or seasonal
service and for weekend residences. The electric utility may require a deposit
sufficient to reasonably protect it against the assumed risk for temporary or
seasonal service or weekend residences, as long as the policy is applied in a
uniform and nondiscriminatory manner. These deposits shall be returned
according to guidelines set out in subsection (k) of this section.
(f) Amount of deposit. The total of all
deposits shall not exceed an amount equivalent to one-sixth of the estimated
annual billing.
(g) Interest on
deposits. Each electric utility requiring deposits shall pay interest on these
deposits at an annual rate at least equal to that set by the commission on or
before December 1 of the preceding calendar year, pursuant to Texas Utilities
Code §
RSA
183.003 (relating to Rate of Interest). If a
deposit is refunded within 30 days of the date of deposit, no interest payment
is required. If the electric utility keeps the deposit more than 30 days,
payment of interest shall be made retroactive to the date of deposit.
(1) 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.
(2) The deposit shall cease to draw interest
on the date it is returned or credited to the customer's account.
(h) Notification to customers.
When a deposit is required, the electric utility shall provide the applicant or
customer written information about deposits by providing the "Your Rights as a
Customer" brochure, which contains the relevant information.
(i) Records of deposits.
(1) The electric utility shall keep records
to show:
(A) the name and address of each
depositor;
(B) the amount and date
of the deposit; and
(C) each
transaction concerning the deposit.
(2) The electric utility shall issue a
receipt of deposit to each applicant paying a deposit and shall provide means
for a depositor to establish a claim if the receipt is lost.
(3) A record of each unclaimed deposit must
be maintained for at least four years.
(4) The electric utility shall make a
reasonable effort to return unclaimed deposits.
(j) Guarantees of residential customer
accounts.
(1) A guarantee agreement between
an electric utility and a guarantor must be in writing and shall be for no more
than the amount of deposit the electric utility would require on the
applicant's account pursuant to subsection (f) of this section. The amount of
the guarantee shall be clearly indicated in the signed agreement.
(2) The guarantee shall be voided and
returned to the guarantor according to the provisions of subsection (k) of this
section.
(3) Upon default by a
residential customer, the guarantor of that customer's account shall be
responsible for the unpaid balance of the account only up to the amount agreed
to in the written agreement.
(4)
The electric utility shall provide written notification to the guarantor of the
customer's default, the amount owed by the guarantor, and the due date for the
amount owed.
(A) The electric utility shall
allow the guarantor 16 days from the date of notification to pay the amount
owed on the defaulted account. If the 16th day falls on a holiday or weekend,
the due date shall be the next workday.
(B) The electric utility may transfer the
amount owed on the defaulted account to the guarantor's own service bill
provided the guaranteed amount owed is identified separately on the bill as
required by §
RSA
25.25(c)(10) of
this title (relating to the Issuance and Format of Bills).
(5) The electric utility may disconnect
service to the guarantor for nonpayment of the guaranteed amount only if the
disconnection was included in the terms of the written agreement, and only
after proper notice as described by paragraph (4) of this subsection, and
§
RSA
25.29(b)(5) of
this title (relating to Disconnection of Service).
(k) Refunding deposits and voiding letters of
guarantee.
(1) If service is not connected,
or is disconnected, the electric utility shall promptly void and return to the
guarantor all letters of guarantee on the account or provide written
documentation that the contract has been voided, or refund the customer's
deposit plus accrued interest on the balance, if any, in excess of the unpaid
bills for service furnished. A transfer of service from one premise to another
within the service area of the electric utility is not a disconnection, and no
additional deposit may be required.
(2) When the customer has paid bills for
service for 12 consecutive residential billings or for 24 consecutive
non-residential billings without having service disconnected for nonpayment of
a bill and without having more than two occasions in which a bill was
delinquent, and when the customer is not delinquent in the payment of the
current bills, the electric utility shall promptly refund the deposit plus
accrued interest to the customer, or void and return the guarantee or provide
written documentation that the contract has been voided. If the customer does
not meet these refund criteria, the deposit and interest or the letter of
guarantee may be retained.
(l) Re-establishment of credit. Every
applicant who previously has been a customer of the electric utility and whose
service has been disconnected for nonpayment of bills or theft of service
(meter tampering or bypassing of meter) shall be required, before service is
reconnected, to pay all amounts due the utility or execute a deferred payment
agreement, if offered, and reestablish credit. The electric utility must prove
the amount of utility service received but not paid for and the reasonableness
of any charges for the unpaid service, and any other charges required to be
paid as a condition of service restoration.
(m) Upon sale or transfer of utility or
company. Upon the sale or transfer of any electric utility or any of its
operating units, the seller shall provide the buyer all required deposit
records.
Notes
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