Wis. Admin. Code Public Service Commission PSC 185.361 - Deposits for nonresidential service

(1) NEW NONRESIDENTIAL SERVICE. If the credit of an applicant for nonresidential service has not been established satisfactorily to the utility, the utility may require the applicant to post deposit. The utility shall notify the applicant within 10 days of the request for service as to whether a deposit shall be required. The 10-day period shall begin from the date the applicant provides all information requested under s. PSC 185.305(2) to the utility. If no request for a deposit is made within this period, no deposit shall be required, except under the provisions of sub. (2). If a request for a deposit is made, the applicant shall be given at least 30 days to provide payment, or guarantee, or to establish a deferred payment agreement.

(2) EXISTING NONRESIDENTIAL SERVICE. The utility may require an existing nonresidential customer to furnish a deposit if any of the following apply:

(a) The customer has not made prompt payment of all bills within the last 24 months;

(b) The utility has disconnected the customer's service within the last 12-month period for violation of the utility's filed rules or for nonpayment of a delinquent service account not currently in dispute;

(c) Subsequent credit information indicates that the initial application for service was falsified or incomplete to the extent that a deposit would be required under this section;

(d) When the utility requests a deposit of an existing customer, the customer shall have 30 days to provide the deposit, guarantee, or to establish a deferred payment agreement.

(3) CONSIDERATIONS FOR DEPOSIT. In determining whether an applicant for nonresidential service has satisfactorily established credit, the utility shall inform the applicant that it shall consider any or all of the following factors, provided by the applicant, before requiring a security deposit:

(a) Credit information from a credit reporting service;

(b) Letter of credit from a financial institution or another utility;

(c) Applicant's business characteristics, including type of business, estimated size of the utility bills, previous bill payment history, and applicant's business experience;

(d) Assets of the business;

(e) The financial condition of the business, as indicated in a financial statement.

(4) GUARANTEE TERMS AND CONDITIONS.

(a) The utility may accept, in lieu of a cash deposit for new or existing nonresidential service, a contract signed by a guarantor satisfactory to the utility where payment of a specified sum not exceeding the cash deposit requirement is guaranteed. The term of such contract shall be for no longer than 2 years, but it shall automatically terminate after the customer has closed its account with the utility, or at the guarantor's request, on a 30-day written notice to the utility.

(b) On termination of a guarantee contract, or whenever the utility deems the amount of surety insufficient, a cash deposit or a new or additional guarantee may be required on a 20-day written notice to the customer. The service of a customer who fails to comply with these requirements may be disconnected on a 10-day written notice, subject to the establishment of a deferred payment agreement for the deposit.

(c) The utility shall mail the guarantor copies of all disconnect notices sent to the customer whose account has been guaranteed, unless the guarantor waives such notice in writing.

(5) WRITTEN EXPLANATION.

(a) A utility shall provide a written explanation of why a deposit or guarantee is being required for nonresidential service. The explanation shall include notice of the customer's right to appeal any deposit request or amount required under this section to the commission.

(b) The written explanation shall also inform the customer that if, after 12 months of utility service, the deposit amount is greater than necessary based on actual consumption, the customer may request refund of the difference between the 2 amounts.

(6) REFUSAL OR INTERRUPTION OF SERVICE. Nonresidential service may be refused or disconnected for failure to pay a deposit request, subject to the s. PSC 185.37 pertaining to disconnection and refusal of service.

(7) AMOUNT OF DEPOSIT. The maximum deposit for a new account shall not exceed the highest estimated gross bill for any consecutive billing period selected by the utility (not to exceed 4 months). If after a 12-month period the deposit amount is shown to be greater than warranted based on actual consumption, the utility shall at the customer's request refund the difference between the 2 amounts plus interest.

(8) INTEREST.

(a) Deposits for nonresidential service shall bear interest from the date a deposit is made to the date it is applied to an account balance or refunded.

(b) The interest rate to be paid shall be subject to change annually on a calendar basis. The commission shall determine the rate of interest to be paid on deposits held during the following calendar year and notify the utility of the rate by December 15 of each year. The rate shall be equal to the weekly average yield of one-year United States treasury securities adjusted for constant maturity for the week ending on or after December 1 made available by the federal reserve board, rounded to the nearest tenth of one percent.

(c) The rate of interest set by the commission shall be payable on all deposits. The utility shall calculate the interest earned on each deposit at the time of the refund and at the end of each calendar year. The interest rate in a calendar year shall apply to the amount of the deposit and to all interest accrued during the previous year, for the fraction of the calendar year that the deposit was held by the utility.

(9) TIME OF REFUND. The deposit of a customer shall be refunded after 24 consecutive months of prompt payment.

(10) METHOD OF REFUND. Any deposit or portion thereof refunded to a customer shall be refunded by check unless both the customer and the utility agree to a credit on the regular billing, or unless sub. (11) or (12) applies.

(11) REFUND AT TERMINATION OF SERVICE. Upon termination of service, the deposit with accrued interest, shall be credited to the final bill, and the balance shall be returned within 30 days of issuing the final bill.

(12) ARREARAGES. An arrearage owed by a customer may be deducted from the customer's deposit under the following conditions:

(a) Except as provided in par. (c), a deposit may be used by the utility only to satisfy an arrearage occurring after the deposit was made;

(b) If the utility deducts an arrearage from a customer deposit, it may require the customer to bring the deposit up to its original amount. Failure of the customer to do so within 20 days of mailing a written request for payment is a ground for disconnection;

(c) When a deposit is refunded to the customer, the utility may first deduct any arrearage owed by the customer, whether the arrearage arose prior to or after the date of the deposit.

Notes

Wis. Admin. Code Public Service Commission PSC 185.361

CR Register, January, 1997, No. 493, eff. 2-1-97; CR 01-033: am. (4) (b), Register October 2001 No. 550, eff. 11-1-01; correction in (1) made under s. 13.92(4) (b) 7, Stats., Register July 2014 No. 703.