Michigan Administrative Code
Department - Licensing and Regulatory Affairs
Public Service Commission
Consumer Standards And Billing Practices For Electric And Gas Residential Service
Part 3 - DEPOSITS AND GUARANTEE TERMS AND CONDITIONS
Section R. 460.111a - General deposit conditions for nonresidential customers
Current through Vol. 24-04, March 15, 2024
Rule 11a.
(1) A utility may require a deposit from a customer or applicant as a condition of receiving or continuing nonresidential service if 1 of the following conditions applies:
(2) If a deposit for nonresidential service is required, all of the following limitations apply:
(3) During the heating season, a small nonresidential customer shall not pay a deposit unless that customer has been shut off for nonpayment during the prior 12 months. A customer deposit under this subrule may not exceed the customer's average monthly bill.
(4) A utility may retain a deposit for nonresidential service until the customer accrues a record of 12 continuous months of bill payment on or before the due date.
(5) A utility shall pay interest at the rate of 5% per annum on all deposits for nonresidential service. A utility shall credit interest semiannually to the customer's service account or pay it upon the return of the deposit, whichever occurs first.
(6) If nonresidential service is terminated, the utility may apply the deposit, plus accrued interest, to the customer's unpaid balance. If the deposit plus the accrued interest is more than the unpaid balance, then the utility shall return the excess to the customer.
(7) A utility shall maintain a detailed record of all deposits received for nonresidential service. The record shall show all of the following information:
(8) A utility shall provide the nonresidential customer or applicant with a receipt for the deposit and instructions regarding how a customer who is entitled to the return of the deposit may obtain it.
(9) The utility shall make reasonable efforts to locate customers due unclaimed deposits and credits for nonresidential service.
(10) Each utility shall, within 60 days of the effective date of this rule, transmit a notice explaining the conditions under which a deposit for nonresidential service may be required to all existing customers. This notice shall also be provided to new customers within 30 days after service has commenced or, at the utility's option, with the first bill rendered.
(11) The utility may, at its option, accept an irrevocable financial institution letter of credit, a surety bond, or other corporate guarantee instead of a deposit for nonresidential service.