Ill. Admin. Code tit. 83, § 735.120 - Deposits
Conditions under which a company may request a deposit from applicants for service and present customers are set out in Sections 735.100 and 735.110 of this Part, respectively.
a) Amount of Deposits -
No company shall request a deposit from an applicant or customer in excess of the
estimated charges for 2 months for residential service, and 4 months for business
service. The estimated charges for customers shall be based on the average monthly
billing of the past 6 months to that customer. In the case of an applicant for
service or a present customer who does not have 6 months service with the company,
the company may use the average monthly bill for that class and type of service to
determine the correct amount for that deposit. The estimated deposit for an
applicant may take into consideration past billing history for service of another
company if service was provided within the State of Illinois and within 6 months of
the application. The Company's tariffs shall provide the methods by which deposits
shall be calculated. The amount of deposit may be adjusted by the company for a
customer pursuant to Section 735.110. The amount of the deposit may be adjusted at
the request of the customer, applicant or utility at any time when the character or
degree of use of the service materially changes or when it is clearly established
that the character or degree of use of the service will materially change in the
immediate future.
b) Payment of Deposits
- A utility may request that a maximum of 1/3 of the amount of a requested deposit
from any customer be paid within 12 days after the date of the request for deposit.
An applicant may be requested to pay no more than 1/3 of the deposit amount prior to
the establishment of service. At least two billing periods shall be allowed for the
balance of the deposit. A customer or applicant may, at their option, pay the
deposit on a more expedited schedule.
c)
Refund of Deposits
1) Deposits plus interest shall
be automatically refunded after being held for 12 months, so long as:
A) the customer has paid any past due bill for
service owed to the same company;
B)
service has not been discontinued for nonpayment,
C) the customer has not paid late 4 times,
or
D) the company has not provided
evidence that the customer used a device or scheme to obtain service without
payment.
2) If the company
does not return a customer's deposit after 12 months, the company shall provide the
customer with the reasons the deposit is being retained, if the customer so
requests.
d) Records of
Deposits - The company shall maintain records of deposits together with interest,
which collectively will show all transactions pertaining to each deposit. The
company shall provide the applicant or customer with a Deposit Receipt for any
deposit received. The Receipt shall show the customer's name, service address,
serial number, type of service, amount of deposit, rate of interest on deposit, date
received, Company's name, and a statement of the conditions under which the deposit
will be refunded.
e) Deposits plus
interest shall be refunded when service has been terminated for more than 30 days,
less the amount of unpaid bills, if any, for that service. A transfer of service
from one premise to another within the area served by the company shall not be
deemed a termination of service by the company if the class of service remains the
same. When a deposit plus interest is applied to the liquidation of unpaid bills,
the company shall provide the customer with a statement showing the amount of the
unpaid bill(s) liquidated by the deposit plus interest, and the balance remaining
due either to the customer or to the company.
f) All deposit refunds shall be by separate check
and not by credit to the customer's account unless the deposit is used to pay the
customer's final bill. When a deposit or portion of deposit is refunded, the company
shall issue a Cancellation Notice carrying the same serial number as the Deposit
Receipt and showing what portion of deposit is being refunded. No refund of less
than $1 need be issued. When refunds are not deliverable, records shall be
maintained to show a Company's efforts toward locating the applicant or customer,
and delivering such refund.
g) At the
option of the company, a deposit plus interest may be refunded, in whole or in part,
at any time earlier than the times prescribed in this Section.
h) Interest Paid on Deposits
1) Interest shall be paid on all deposits held by
the utility. The rate of interest will be the same as the rate existing for the
average one-year yield on U.S. Treasury securities for the last full week in
November. The interest rate will be rounded to the nearest .5%. In December of each
year the Commission shall announce the rate of interest that shall be paid on all
deposits held during all or part of the subsequent year.
2) At the request of a customer, the company shall
compute the accrued interest upon the deposit and pay such amount to the customer.
The company need not make such payment more often than once in a 12 month period,
nor sooner than 12 months after receipt of a deposit.
i) Guarantee in Lieu of Deposit
1) In lieu of a deposit required by this Section,
a company shall accept the written guarantee of a responsible party as surety for a
residential service account. A current customer of the same company with at least 12
months' service which has not been discontinued for nonpayment during the most
recent 12 months qualifies as a responsible party.
2) The form of each Company's guarantee must be
filed with and approved by the Illinois Commerce Commission. A guarantee shall be
approved in accordance with these rules if it conforms to the following conditions:
A) It shall be in writing.
B) It shall state the terms of the guarantee
(including the maximum amount guaranteed) and that the company shall not hold the
Guarantor liable for sums in excess of that amount.
C) This guarantee shall remain in full force and
effect until 30 days after receipt by the company of a cancellation of this
agreement from Guarantor. However, the company is not obliged to release the
Guarantor from their obligation if the company has reason to believe that the
customer has used a device or scheme to obtain service without payment, and has so
notified the customer.
D) The maximum
amount guaranteed shall not exceed the amount of the deposit which would have been
charged the applicant or customer.
E)
The Guarantor shall be released from their obligation when the customer has met the
criteria set forth in Section
735.120(c).
j) A company shall agree to
accept a Surety Bond in lieu of a cash deposit, provided that such surety bond has
been issued by an insurance company that has received a certificate of authority
from the Department of Insurance to do business in Illinois.
Notes
Amended at 26 Ill. Reg. 7078, effective May 1, 2002
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