1. A. Each telephone utility may require from any customer or from any prospective customer, a deposit intended to guarantee payment of bills for regulated service, if any of the following conditions exist:

   1. 1. The customer has had two 30-day arrearages in the past 24 months, or the customer has been sent two or more late payment notices in the past 9 months; or
   2. 2. A new customer cannot furnish either an acceptable co-signer or guarantor who is a customer of the utility within the State of South Carolina to guarantee payment; or
   3. 3. The customer’s gross monthly billing increases; or
   4. 4. A customer has had his service terminated by any telephone utility for non-payment or fraudulent use; or
   5. 5. The utility determines, through use of commercially acceptable methods, that the customer’s credit and financial condition so warrants.
2. B. Each telephone utility shall inform affected prospective customers of the provisions contained in R. 103-621-(A).

3. C. A utility is not required to install new service to a customer prior to the utility’s receipt of any deposit that is required of that customer.

   1. A. For a new customer, a maximum deposit may be required up to an amount equal to an estimated two (2) months (60 days) total bill (including toll and taxes). For an existing customer, a maximum deposit may be required up to an amount equal to the total actual bills of the highest two (2) consecutive months within the preceding six (6) months.

   2. B. All deposits may be subject to review based on the actual experience of the customer. The amount of the deposit may be adjusted upward or downward to reflect the actual billing experience and the payment habits of the customer.

      103-621.3. Interest on Deposits.

   3. A. Simple interest on deposits at the rate not less than that as prescribed by the commission shall be paid by the telephone utility to each customer required to make such deposit for the time it is held by the telephone utility.
   4. B. The interest shall be accrued annually and payment of such interest shall be made to the customer at least every two (2) years and at the time the deposit is returned.

   5. C. The deposit shall cease to draw interest on the date it is returned, the date service is terminated, or on the date notice is sent to the customer’s last known address, by bill insert, electronically, or by any other method of notice selected by the utility customer and maintained in the customer’s records at the telephone utility that the deposit is no longer required.

      1. a. The name and address of each depositor.
      2. b. The amount and date of the deposit.
      3. c. The last transaction concerning the deposits.

      4. d. The reasons why deposit retained after two year retention period. (See R. 103-621.5)

         103-621.5. Deposit Retention.

         Deposits shall be refunded completely with interest after two years unless the customer has had two 30-day arrearages in the past 24 months, or has had service denied or interrupted for non-payment of bills, or has been sent more than two late payment notices in the past 9 months, or has a returned check in the past 6 months.

         103-621.6. Unclaimed Deposits.

         A record of each unclaimed deposit must be maintained for at least two years, during which time the telephone utility shall make a reasonable effort to return the deposit. Unclaimed deposits, together with accrued interest, shall be treated in accordance with law.

         103-621.7. Deposit Credit.

         Where a customer has been required to make a deposit, that deposit shall not relieve the customer of the obligation to pay the service bill when due, but where such deposit has been made and service has been disconnected because of nonpayment of account, then unless the customer shall, within seventy-two hours after service has been disconnected, apply for reconnection of service and pay the account, the account may be discontinued. If the telephone utility discontinues the account, the telephone utility shall apply the deposit of such customer toward the discharge of such account and shall refund to the customer any excess.

      103-621.4. Deposit Records.

      Each telephone utility shall keep records to show:

   103-621.1. Deposit Receipt.

   Each utility shall maintain records of each deposit it receives from a customer and shall provide means whereby a customer may establish a claim regarding his deposit.

   103-621.2. Amount of Deposit.

HISTORY: Amended by State Register Volume 10, Issue No. 6, eff June 27, 1986; State Register Volume 14, Issue No. 3, eff March 23, 1990; State Register Volume 16, Issue No. 6, eff June 26, 1992; State Register Volume 31, Issue No. 4, eff April 27, 2007; SCSR 49-5 Doc. No. 5267, eff May 23, 2025.