| (a) Credit requirements for permanent residential applicants.
(1) An electric utility may require a residential applicant
for service to establish and maintain satisfactory credit as a condition
of providing service.
(A) Establishment of credit shall not relieve any customer
from complying with the electric utility's requirements for prompt
payment of bills.
(B) The credit worthiness of spouses established during
shared service in the 12 months prior to their divorce will be equally
applied to both spouses for 12 months immediately after their divorce.
(2) A residential applicant can demonstrate satisfactory
credit using any one of the criteria listed in subparagraphs (A) through
(C) of this paragraph.
(A) The residential applicant:
(i) has been a customer of any electric utility for
the same kind of service within the last two years;
(ii) is not delinquent in payment of any such electric
utility service account;
(iii) during the last 12 consecutive months of service
was not late in paying a bill more than once;
(iv) did not have service disconnected for nonpayment;
and
(v) is encouraged to obtain a letter of credit history
from the applicant's previous electric utility, and electric utilities
are encouraged to provide such information with the final bill.
(B) The residential applicant demonstrates a satisfactory
credit rating by appropriate means, including, but not limited to,
the production of:
(i) generally acceptable credit cards;
(ii) letters of credit reference;
(iii) the names of credit references which may be quickly
and inexpensively contacted by the electric utility; or
(iv) ownership of substantial equity that is easily
liquidated.
(C) The residential applicant is 65 years of age or
older and does not have an outstanding account balance incurred within
the last two years with the electric utility or another electric utility
for the same type of utility service.
(3) If satisfactory credit cannot be demonstrated by
the residential applicant using these criteria, the applicant may
be required to pay a deposit pursuant to subsection (c) of this section.
(b) Credit requirements for non-residential applicants.
For non-residential service, if an applicant's credit has not been
demonstrated satisfactorily to the electric utility, the applicant
may be required to pay a deposit.
(c) Initial deposits.
(1) A residential applicant or customer who is required
to pay an initial deposit may provide the electric utility with a
written letter of guarantee pursuant to subsection (j) of this section,
instead of paying a cash deposit.
(2) An initial deposit may not be required from an
existing customer unless the customer was late paying a bill more
than once during the last 12 months of service or had service disconnected
for nonpayment. The customer may be required to pay this initial deposit
within ten days after issuance of a written termination notice that
requests such deposit. Instead of an initial deposit, the customer
may pay the total amount due on the current bill by the due date of
the bill, provided the customer has not exercised this option in the
previous 12 months.
(d) Additional deposits.
(1) An additional deposit may be required if:
(A) the average of the customer's actual billings for
the last 12 months are at least twice the amount of the original estimated
annual billings; and
(B) a disconnection notice has been issued for the
account within the previous 12 months.
(2) An electric utility may require that an additional
deposit be paid within ten days after the electric utility has issued
a written disconnection notice and requested the additional deposit.
(3) Instead of an additional deposit, the customer
may pay the total amount due on the current bill by the due date of
the bill, provided the customer has not exercised this option in the
previous 12 months.
(4) The electric utility may disconnect service if
the additional deposit is not paid within ten days of the request,
provided a written disconnection notice has been issued to the customer.
A disconnection notice may be issued concurrently with either the
written request for the additional deposit or current usage payment.
(e) Deposits for temporary or seasonal service and
for weekend residences. The electric utility may require a deposit
sufficient to reasonably protect it against the assumed risk for temporary
or seasonal service or weekend residences, as long as the policy is
applied in a uniform and nondiscriminatory manner. These deposits
shall be returned according to guidelines set out in subsection (k)
of this section.
(f) Amount of deposit. The total of all deposits shall
not exceed an amount equivalent to one-sixth of the estimated annual
billing.
(g) Interest on deposits. Each electric utility requiring
deposits shall pay interest on these deposits at an annual rate at
least equal to that set by the commission on or before December 1
of the preceding calendar year, pursuant to Texas Utilities Code §183.003
(relating to Rate of Interest). If a deposit is refunded within 30
days of the date of deposit, no interest payment is required. If the
electric utility keeps the deposit more than 30 days, payment of interest
shall be made retroactive to the date of deposit.
(1) Payment of the interest to the customer shall be
made annually, if requested by the customer, or at the time the deposit
is returned or credited to the customer's account.
(2) The deposit shall cease to draw interest on the
date it is returned or credited to the customer's account.
(h) Notification to customers. When a deposit is required,
the electric utility shall provide the applicant or customer written
information about deposits by providing the "Your Rights as a Customer"
brochure, which contains the relevant information.
(i) Records of deposits.
(1) The electric utility shall keep records to show:
(A) the name and address of each depositor;
(B) the amount and date of the deposit; and
(C) each transaction concerning the deposit.
(2) The electric utility shall issue a receipt of deposit
to each applicant paying a deposit and shall provide means for a depositor
to establish a claim if the receipt is lost.
(3) A record of each unclaimed deposit must be maintained
for at least four years.
(4) The electric utility shall make a reasonable effort
to return unclaimed deposits.
(j) Guarantees of residential customer accounts.
(1) A guarantee agreement between an electric utility
and a guarantor must be in writing and shall be for no more than the
amount of deposit the electric utility would require on the applicant's
account pursuant to subsection (f) of this section. The amount of
the guarantee shall be clearly indicated in the signed agreement.
(2) The guarantee shall be voided and returned to the
guarantor according to the provisions of subsection (k) of this section.
(3) Upon default by a residential customer, the guarantor
of that customer's account shall be responsible for the unpaid balance
of the account only up to the amount agreed to in the written agreement.
(4) The electric utility shall provide written notification
to the guarantor of the customer's default, the amount owed by the
guarantor, and the due date for the amount owed.
(A) The electric utility shall allow the guarantor
16 days from the date of notification to pay the amount owed on the
defaulted account. If the sixteenth day falls on a holiday or weekend,
the due date shall be the next workday.
(B) The electric utility may transfer the amount owed
on the defaulted account to the guarantor's own service bill provided
the guaranteed amount owed is identified separately on the bill as
required by §25.25(c)(10) of this title (relating to the Issuance
and Format of Bills).
(5) The electric utility may disconnect service to
the guarantor for nonpayment of the guaranteed amount only if the
disconnection was included in the terms of the written agreement,
and only after proper notice as described by paragraph (4) of this
subsection, and §25.29(b)(5) of this title (relating to Disconnection
of Service).
(k) Refunding deposits and voiding letters of guarantee.
Cont'd... |
