1. (1) Each utility may require from any customer or prospective customer a cash deposit to guarantee payment of bills. Such required deposits shall not exceed an amount equivalent to the estimated maximum bill for one billing period plus thirty (30) days.

2. (2) Each utility having on hand deposits from customers, or hereafter receiving deposits from customers, shall keep records to show:

   1. (a) The name of the customer making the deposits;
   2. (b) The account number or other identification of the premises occupied by the customer when the deposit was made;
   3. (c) The amount and date of making the deposit; and
   4. (d) A record of each transaction concerning the deposit.
3. (3) Each utility shall issue to every customer from whom a deposit is received a nonassignable receipt. Each utility shall provide reasonable ways and means whereby the depositor who makes application for the return of his deposits or any balance to which he is entitled but is unable to produce the original receipt may receive his deposit or balance.
4. (4) Any interest on deposits will be approved by the Commission.
5. (5) A record of each unclaimed deposit must be maintained for at least three (3) years, during which time the utility shall make a reasonable effort to return the deposit.
6. (6) Unclaimed deposits, together with accrued interest, if any, shall be credited to an appropriate account.
7. (7) Deposits may be retained by the utility as long as required to insure payment of bills.
8. (8) Upon final discontinuance of service the utility may apply such deposits including accrued interest to any amount due from the customer for service. Any balance due to the customer shall be promptly refunded.

Authority: T.C.A. § 65-2-102. Administrative History: Original rule certified May 9, 1974. Editorial changes made by the Secretary of State pursuant to Public Chapter 305 of 1995; “Commission” and references to the “Commission” were changed to “Authority” and references to the “Authority”; effective March 28, 2003. Administrative changes made to this chapter on April 27, 2018 pursuant to Public Chapter 94 of 2017; “Tennessee Regulatory Authority” references were changed to “Tennessee Public Utility Commission,” “Authority” references were changed to “Commission,” “Authority Director” references were changed to “Commissioner,” and “Chief” references were changed to “Director.”