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

1. (a) The customer’s past payment record to a water utility shows delinquent payment practice, i.e. the customer has had two consecutive thirty-day arrears, or more than two non-consecutive thirty-day arrears in the past twenty-four months or,
2. (b) A new customer cannot furnish either a letter of good credit from a reliable source or an acceptable cosigner to guarantee payment, or
3. (c) A customer has no deposit, and presently is delinquent in payments (i.e., the customer has had two consecutive 30-day arrears, or more than two non-consecutive 30-day arrears, in the past 24 months), or

4. (d) A customer has had their service terminated for nonpayment or fraudulent use.

   103-731.1. Amount of Deposit.

5. A. A maximum deposit may be required up to an amount equal to an estimated two (2) months (60 days) bill for a new customer or a maximum deposit may be required up to an amount equal to the total actual bills of the highest two (2) consecutive months based on the experience of the preceding twelve (12) months or portion of the year, if on a seasonal basis.

6. 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 payment habits of the customer.

   103-731.2. Interest on Deposits.

7. A. Simple interest on deposits at the rate as determined by commission Order shall be paid by the utility to each customer required to make such deposit for the time it is held by the utility, provided that no interest need be paid unless the deposit is held longer than six months.
8. 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.

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

   1. (a) The name and address of each depositor;
   2. (b) The amount and date of the deposit; and,

   3. (c) Each transaction concerning the deposits.

      103-731.4. Deposit Receipt.

      Each utility shall issue a receipt of deposit to each customer from whom a deposit is received, and shall provide means whereby a depositor may establish his claim if his receipt is lost.

      103-731.5. Deposit Retention.

      Deposits shall be refunded completely with interest after two years unless the customer has had two consecutive 30-day arrearages, or more than two non-consecutive 30-day arrearages, in the past 24 months.

      103-731.6. Unclaimed Deposits.

      A record of each unclaimed deposit must be maintained for at least one year during which time the water utility shall make a reasonable effort to return the deposit. Unclaimed deposits, together with accrued interest, shall be turned over to the South Carolina State Treasurer as prescribed by law.

      103-731.7. Deposit Credit.

      Where a customer has been required to make a deposit, this shall not relieve the customer of the obligation to pay the service bills when due. Where such deposit has been made and service has been discontinued for reason of non-payment of bill, a utility shall apply the deposit of such customer toward the discharge of the customer’s account and shall as soon thereafter as practicable refund the customer any excess of the deposit. If however, the customer whose service has been disconnected for non-payment, pays the full amount on his account within 72 hours after service has been disconnected and applies for reconnection, the utility may not charge an additional deposit except under the provisions of 1 of this rule.

   103-731.3. Deposit Records.

   Each utility shall keep a record to show:

HISTORY: Amended by State Register Volume 14, Issue No. 3, eff March 23, 1990; State Register Volume 18, Issue No. 3, eff March 25, 1994; State Register Volume 31, Issue No. 5, eff May 25, 2007; SCSR 48-5 Doc. No. 5184, eff May 24, 2024.