Sec. 15.
(a) Each
utility shall determine the creditworthiness of an applicant or customer in an
equitable and nondiscriminatory method:
(1)
without regard to the economic character of the area wherein the applicant or
customer resides; and
(2) solely
upon the credit risk of the individual without regard to the collective credit
reputation of the area in which he or she lives.
(b) Each new applicant for residential
utility service shall be deemed creditworthy and shall not be required to make
a cash deposit as a condition of receiving service if the applicant satisfies
the following criteria:
(1) If the applicant
has been a customer of any utility within the last two (2) years, the
applicant:
(A) owes no outstanding bills for
service rendered within the past four (4) years by any such utility;
(B) during the last twelve (12) consecutive
months that the service was provided, did not have more than two (2) bills that
were delinquent to any utility or, if service was rendered for a period for
less than twelve (12) months, did not have more than one (1) delinquent bill in
such period; and
(C) within the
last two (2) years did not have a service disconnected by a utility for
nonpayment of a bill for services rendered by that utility.
(2) If the applicant has not been
a customer of a utility during the previous two (2) years, any two (2) of the
following criteria are met:
(A) The applicant
either:
(i) has been employed by his or her
present employer for two (2) years;
(ii) has been employed by his or her present
employer for less than two (2) years, but has been employed by only one (1)
other employer during the past two (2) years; or
(iii) has been employed by the present
employer for less than two (2) years and has no previous employment due to
recently:
(AA) graduating from a school,
university, or vocational program; or
(BB) being discharged from military service.
(B) The
applicant either:
(i) owns or is buying his
or her home; or
(ii) is renting a
home or an apartment and has occupied the premises for more than two (2)
years.
(C) The applicant
has credit cards, charge accounts, or has been extended credit by a bank,
commercial concern, or individual unless a credit check shows that the
applicant has been in default on any such account more than twice within the
last twelve (12) months.
(c) If the applicant fails to establish that
he or she is creditworthy under subsection (b), the applicant may be required
to make a cash deposit. Such deposit shall not exceed one-sixth (1/6) of the
estimated annual cost of service to be rendered to the applicant. If a deposit
is greater than seventy dollars ($70), the utility shall advise the applicant
or customer simultaneously with making a demand for a deposit that the
applicant or customer may pay such deposit in equal installment payments over a
period of no less than eight (8) weeks; service shall be connected upon receipt
by the utility of the first such payment.
(d) If the utility requires a cash deposit as
a condition of providing service, then it must immediately send a written
notice to the applicant stating the precise facts upon which it bases its
decision and provide the applicant with an opportunity to rebut such facts and
show other facts demonstrating his or her creditworthiness.
(e) A utility may require a present customer
to make a cash deposit when:
(1) the customer
has been mailed disconnect notices for two (2) consecutive months;
(2) the customer has been mailed disconnect
notices for any three (3) months within the preceding twelve (12) month period;
or
(3) the service to the customer
has been disconnected within the past four (4) years pursuant to section 16 of
this rule. The amount of such deposit may not exceed an amount equal to
one-sixth (1/6) of the expected annual billings for the customer at the address
at which service is rendered. The utility shall provide the customer with two
(2) monthly billing cycles (approximately sixty (60) days) in which to pay any
deposit that exceeds seventy dollars ($70).
(f) Requirements for interest upon deposits
shall be as follows:
(1) Deposits held more
than twelve (12) months shall earn interest from the date of deposit at a rate
of six percent (6%) per annum or at such a rate of interest as the commission
may prescribe following a public hearing.
(2) The deposit shall not earn interest after
the date it is mailed or personally delivered to the customer, or otherwise
lawfully disposed.
(g)
Requirements for refunds shall be as follows:
(1) Any deposit or accrued interest shall be
promptly refunded to the customer without the customer's request when the
customer:
(A) submits satisfactory payment for
a period of either:
(i) nine (9) successive
months; or
(ii) ten (10) out of any
twelve (12) consecutive months without late payment in two (2) consecutive
months; or
(B)
demonstrates his or her creditworthiness by any other means.
(2) Refunds of deposits or accrued
interest issued under this section must be accompanied by a statement of
accounting for each transaction affecting the deposit and interest.
(3) Following customer-requested termination
of service, the utility shall:
(A) apply the
deposit, plus accrued interest, to the final bill; or
(B) upon specific request from the customer,
refund the deposit, plus accrued interest, within fifteen (15) days after
payment of the final bill.
(4) Each utility shall maintain a record of
each applicant or customer making a deposit that shows the following:
(A) The name of the customer.
(B) The current address of the customer so
long as he or she maintains an active account with the utility in his or her
name.
(C) The amount of the
deposit.
(D) The date the deposit
was made.
(E) A record of each
transaction affecting such deposit.
(5) Each customer shall be provided a written
receipt from the utility at the time his or her deposit is paid in full or he
or she makes a cash partial payment. The public utility shall provide a
reasonable method by which a customer who is unable to locate his or her
receipt may establish that he or she is entitled to a refund of the deposit and
payment of interest thereon.
(6)
Any deposit made by the applicant, customer, or any other person to the utility
(less any lawful deductions), or any sum the utility is ordered to refund for
utility service, that has remained unclaimed for one (1) year after the utility
has made diligent effort to locate the person who made such deposit or the
heirs of such person, shall be presumed abandoned and treated in accordance
with IC 32-9-1.5-20(c)(10)[IC 32-9 was repealed by P.L. 2-2002, SECTION
128, effective July 1, 2002.].
(7) A deposit may be used by the utility to
cover any unpaid balance following disconnection of service under section 16 of
this rule; provided, however, that any surplus be returned to the customer as
provided in subsection (f) and this subsection.
