Missouri Code of State Regulations
Title 20 - DEPARTMENT OF COMMERCE AND INSURANCE
Division 4240 - Public Service Commission
Chapter 13 - Service and Billing Practices for Residential Customers of Electric, Gas, Sewer, and Water Utilities
Section 20 CSR 4240-13.030 - Deposits and Guarantees of Payment
Universal Citation: 20 MO Code of State Regs 4240-13.030
Current through Register Vol. 49, No. 6, March 15, 2024
PURPOSE: This rule establishes reasonable and uniform standards regarding deposits and guarantees required by utilities.
(1) A utility may require a deposit or other guarantee as a condition of new residential service if-
(A) The applicant has a past-due bill,
which accrued within the last five (5) years and, at the time of the request
for service, remains unpaid and not in dispute with a utility for the provision
of the same type of service;
(B)
The applicant has, in an unauthorized manner, within the last five (5) years
prior to applying for service, interfered with or diverted the service of a
utility in the provision of the same type of service; or
(C) The applicant is unable to establish an
acceptable credit rating under standards contained in the utility's
commission-approved tariffs. If the applicant has insufficient credit history
to determine a credit score, then the applicant shall be deemed to have
established an acceptable credit rating if the customer meets any of the
following criteria:
1. Owns or is purchasing a
home;
2. Is and has been regularly
employed on a full-time basis for at least one (1) year;
3. Has a regular source of income;
or
4. Can provide adequate credit
references from a commercial credit source.
(2) A utility may require a deposit or guarantee as a condition of continuing or re-establishing residential service if-
(A) The service of the customer has been
discontinued by the utility for nonpayment of a delinquent account not in
dispute; or
(B) The customer has
interfered with, diverted or, in an unauthorized manner, used utility service
delivered to the customer's premises; or
(C) The customer has failed to pay an
undisputed bill on or before the delinquent date for five (5) billing periods
out of twelve (12) consecutive monthly billing periods, or two (2) quarters out
of four (4) consecutive quarters. Prior to requiring a customer to post a
deposit under this subsection, the utility shall send the customer a written
notice explaining the utility's right to require a deposit or include such
explanation with each written discontinuance notice. Notwithstanding the
foregoing; a utility may not require a deposit from a customer if such customer
has consistently made a payment for each month during the twelve (12)
consecutive months, provided that each payment is made by the delinquent date;
and each payment made is at least seventy-five dollars ($75) or twenty-five
percent (25%) of the total outstanding balance, provided that the total
outstanding balance is three hundred dollars ($300) or less. This provision
shall not apply to any customer whose total outstanding balance exceeds three
hundred dollars ($300) or to any customer making payments under a payment plan
previously arranged with the utility.
(3) Unless prohibited by Chapter 13, if the customer is unable to pay the entire deposit assessed under the provisions of subsection (2)(A) or (C) of this rule during the months of November, December, and January, the deposit for gas or electric service may be paid by installments over a six- (6-) month period.
(4) A deposit shall be subject to the following terms:
(A) It shall not exceed two
(2) times the highest bill or four (4) times the average bill, whichever is
stated in the utility's tariff for utility charges actually incurred or
estimated to be incurred by the customer during the most proximate twelve-
(12-) month period at the service location or, in the case of a new customer,
who is assessed a deposit under subsection (1)(C) of this rule, one-sixth (1/6)
of the estimated annual bill for monthly billed customers or one-third (1/3) of
the estimated annual bill for quarterly billed customers for utility charges at
the requested service location;
(B)
It shall bear interest at a rate specified in the utility's commission-approved
tariffs, which shall be credited annually to the account of the customer or
paid upon the return of the deposit to the customer, whichever occurs first.
Interest shall not accrue on any deposit after the date on which a reasonable
effort has been made to return it to the customer. The utility shall make all
reasonable efforts to return a deposit to its customer when the customer is
entitled to the return of their deposit and shall keep records of efforts to
return a deposit. This rule shall not preclude a utility from crediting
interest to each service account during one (1) billing cycle
annually;
(C) Upon discontinuance
or termination other than for a change of service address, it shall be
credited, with accrued interest, to the utility charges stated on the final
bill and the balance, if any, shall be returned to the customer within
twenty-one (21) days of the rendition of the final bill;
(D) Upon satisfactory payment of all
undisputed utility charges during the last twelve (12) billing months, it shall
be promptly refunded or credited, with accrued interest, against charges stated
on subsequent bills. Payment of a charge is satisfactory if received prior to
the date upon which the charge becomes delinquent provided it is not in
dispute. Payment of a disputed bill shall be satisfactory if made within ten
(10) days of resolution or withdrawal of the dispute. A utility may withhold
refund of a deposit pending the resolution of a dispute with respect to charges
secured by the deposit;
(E) A
utility shall maintain records which show the name of each customer who has
posted a deposit, the current address of the customer, the date and amount of
deposit, the date and amount of interest paid, and information to determine the
earliest possible refund date;
(F)
Each customer posting a security deposit shall receive, in writing, at the time
of tender of deposit or with the first bill a receipt as evidence of deposit,
unless the utility shows the existence or nonexistence of a deposit on the
customer's bill, in which event the receipt shall not be required unless
requested by the customer. The receipt shall contain the following minimum
information:
1. Name of customer;
2. Date of payment;
3. Amount of payment;
4. Identifiable name, signature, and title of
the utility employee who received the payment; and 5. Statement of the terms
and conditions governing the payment, retention, and return of
deposits;
(G) A utility
shall not deprive a customer of a deposit return within five (5) years
following the date that the customer is due for a deposit return, even though
the customer may be unable to produce the original receipt; provided that the
customer can produce adequate identification;
(H) No deposit or guarantee or additional
deposit or guarantee shall be required by a utility because of race, sex,
creed, national origin, marital status, age, number of dependents, source of
income, disability, or geographical area of residence; and
(I) A utility shall permit an applicant or
customer required to make a deposit to pay the deposit in installments unless
the utility can show-
1. Applicant has in an
unauthorized manner, interfered with, or diverted the same type of service
within the last five (5) years; or
2. If a customer has in an unauthorized
manner interfered with, diverted, or used the service of the utility situated
on or about or delivered to the customer's premises; or
3. A likelihood that the customer does not
intend to pay for the service.
(5) In lieu of a deposit, a utility may accept a written guarantee. The limit of the guarantee shall not exceed the amount of a cash deposit.
(6) A guarantor shall be released upon satisfactory payment of all undisputed utility charges during the last twelve (12) billing months. Payment of a charge is satisfactory if received prior to the date upon which the charge becomes delinquent, provided it is not in dispute. Payment of a disputed bill shall be satisfactory if made within ten (10) days of resolution or withdrawal of the dispute.
(7) A sewer utility shall not require a deposit for flat rate billing to a customer for residential service that is rendered in advance of service being provided.
*Original authority: 386.250(6), RSMo 1939, amended 1963, 1967, 1977, 1980, 1987, 1988, 1991, 1993, 1995, 1996 and 393.140(11), RSMo 1939, amended 1949, 1967.
Disclaimer: These regulations may not be the most recent version. Missouri may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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