04 NCAC 11 R12-04 – Deposit; Amount; Reciept; Interest

(a) No utility shall require a cash deposit to establish or reestablish service in an amount in excess of two‑twelfths of the estimated charge for the service for the ensuing twelve months; and, in the case of seasonal service, in an amount in excess of one‑half of the estimated charge for the service for the season involved (except that in the case of seasonal natural gas customers, the cash deposit may not be in an amount in excess of one‑third of the estimated charge for the service for the season involved). Each utility, upon request, shall furnish a copy of these Rules to the applicant for service or customer from whom a deposit is required, and such copy shall contain the name, address, and telephone number of the Commission.
(b) Upon receiving a cash deposit, the utility shall furnish to the applicant for service or customer, a receipt showing: (i) the date thereof; (ii) the name of the applicant or customer and the address of the premises to be served or served; (iii) the service to be furnished or furnished; and (iv) the amount of the deposit and the rate of interest to be paid thereon.
(c) Each utility shall pay interest on any deposit held more than ninety (90) days at the rate of eight percent per annum. Interest on a deposit shall accrue annually and, if requested, shall be annually credited to the customer by deducting such interest from the amount of the next bill for service following the accrual date. A utility shall pay interest on a deposit beginning with the 91st day after it is collected and continuing until such deposit is lawfully tendered back to the customer by first‑class mail, or to his legal representative or until it escheats to the State, with accrued interest.
(d) Nothing in this rule shall preclude a natural gas utility from exercising reasonable discretion in waiving or extending the deposit requirement to prevent undue hardship to an applicant or customer.
(NCUC Docket No. M‑100, Sub 28, 5/6/70; NCUC Docket Nos. M‑100, Sub 28, M‑100, Sub 61, 9/7/78; NCUC Docket Nos. M‑100, Sub 28, M‑100, Sub 61, 12/17/79; NCUC Docket No. M‑100, Sub 86, 9/12/80.)