Sec. 15.
(a) Each
utility shall determine the creditworthiness of residential applicants or
customers 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 water
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 or
commercial concern 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 reasonable 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 notify the applicant
in writing stating the precise facts upon which the utility based 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 reasonable 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. In the event the required
deposit is in excess of seventy dollars ($70), the utility shall advise the
customer that he or she may pay such deposit in equal installment payments over
a period of up to eight (8) weeks, except where such deposit is required as a
result of a disconnection for nonpayment, in which case full payment of the
deposit may be required prior to reconnection.
(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 other 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 as provided by subsection
(b).
(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 when
he or she makes a cash partial payment. The 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 efforts 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.