Current through August 26, 2024
(1) DEPOSIT
REQUEST. If the credit of an applicant for commercial or farm service has not
been established satisfactorily to the utility, the utility may require the
applicant to post a deposit. The utility shall notify the applicant within 30
days of the request for service as to whether a deposit will be required. The
30-day period shall begin from the date the applicant provides all requested
relevant information to the utility. If no request for a deposit is made within
this period, no deposit shall be required, except under the provisions of sub.
(5). If a request for a deposit is made, the applicant must be given at least
30 days to provide payment, or guarantee, or to establish an installment
payment agreement.
(2)
CONSIDERATIONS FOR DEPOSIT. In determining whether an applicant for commercial
or farm service has satisfactorily established its credit, the utility shall
inform the customer that it will consider any or all of the following factors,
if provided by the customer, before requiring a security deposit:
(a) Credit information from credit reporting
services.
(b) Letter of credit from
a financial institution or another utility.
(c) Applicant's business characteristics,
such as type of business, length of time the applicant has operated, the
applicant's business experience and knowledge, and estimated size of the
applicant's bills.
(d) Assets of
the business.
(e) The financial
condition of the business, as indicated in a financial statement.
(3) INSTALLMENT PAYMENT AGREEMENT.
A commercial or farm customer or applicant for commercial or farm service of
which a deposit is requested shall have the right to receive service under an
installment payment agreement.
(4)
GUARANTEE TERMS AND CONDITIONS.
(a) The
utility may accept, in lieu of a cash deposit for new or existing commercial or
farm service, a contract signed by a guarantor satisfactory to the utility
whereby payment of a specified sum not exceeding the cash deposit requirement
is guaranteed. The term of such contract shall be for no longer than 2 years,
but it shall automatically terminate after the commercial or farm customer has
closed its account with the utility, or at the guarantor's request on 30 days'
written notice to the utility.
(b)
On termination of a guarantee contract, or whenever the utility deems the
amount of surety insufficient, a cash deposit or a new or additional guarantee
may be required on 20-day written notice to the customer. The service of a
customer who fails to comply with these requirements may be disconnected on 8
days' written notice, subject to the establishment of an installment payment
agreement.
(c) The utility shall
mail the guarantor copies of all disconnect notices sent to the customer whose
account he or she has guaranteed, unless the guarantor waives such notice in
writing.
(5) EXISTING
COMMERCIAL OR FARM SERVICE.
(a) The utility
may require an existing commercial or farm customer to furnish a deposit if the
customer has not made prompt payment of all bills within the last 24 months, or
if the customer has the ability to pay for the utility service but, during the
cold weather disconnection rules period, had an arrears amount incurred during
that period that was 80 days or more past due.
(b) When the utility requests a deposit of an
existing commercial or farm customer, the customer shall have 30 days to
provide the deposit, guarantee, or to establish an installment payment
agreement.
(6) WRITTEN
EXPLANATION.
(a) A utility shall provide a
written explanation of why a deposit or guarantee is being required for
commercial or farm service. The explanation shall include notice of the
customer's right to appeal any deposit request or amount required under this
section to the public service commission.
(b) The utility shall inform the customer at
the time a deposit is provided that if, after 12 months of utility service, the
deposit amount is greater than necessary based on actual consumption, the
customer may request refund of the difference between the 2 amounts.
(7) REFUSAL OR INTERRUPTION OF
SERVICE. Commercial or farm service may be refused or disconnected for failure
to pay a deposit request, subject to the rules pertaining to disconnection and
refusal of service.
Note: See s.
PSC 134.0622.
(8) AMOUNT OF DEPOSIT.
(a) The maximum deposit for a new commercial
or farm account shall not exceed the highest estimated gross bill for any 2
consecutive billing periods selected by the utility. If after a 12 month period
the deposit amount is shown to be greater than warranted based on actual
consumption, the utility shall at the customer's request refund the difference
between the 2 amounts, plus interest.
(b) Except as provided in par. (c), the
maximum deposit for an existing commercial or farm account shall not exceed the
highest actual gross bill for any 2 consecutive months within the preceding 12
month review period, as determined by the utility.
(c) If, during the cold weather disconnection
rules period, a customer had an arrears amount incurred during this period that
was 80 days or more past due and had the ability to pay for utility service,
the deposit may not exceed the highest actual gross bill for any 4 consecutive
months within the preceding 12 month review period, as determined by the
utility.
(9) INTEREST.
(a) Deposits for commercial or farm service
shall bear interest from the date a deposit is made to the date it is applied
to an account balance or refunded.
(b) The interest rate to be paid shall be
subject to change annually on a calendar [year] basis. The commission shall
determine the rate of interest to be paid on deposits held during the following
calendar year and notify the utilities of the rate by December 15 of each year.
The rate shall be equal to the weekly average yield of one-year United States
treasury securities adjusted for constant maturity for the week ending on or
after December 1 made available by the federal reserve board, rounded to the
nearest tenth of one per cent.
(c)
The rate of interest set by the commission shall be payable on all deposits.
Utilities shall calculate the interest earned on each deposit at the time of
refund and at the end of each calendar year. The interest rate in a calendar
year shall apply to the amount of the deposit and to all interest accrued
during the previous year(s), for the fraction of the calendar year that the
deposit was held by the utility.
(10) TIME OF REFUND. The deposit of a
commercial or farm customer shall be refunded after 24 consecutive months of
prompt payment.
(11) METHOD OF
REFUND. Any deposit or portion thereof refunded to a commercial or farm
customer shall be refunded by check unless both the customer and utility agree
to a credit on the regular billing, or unless sub. (13) applies.
(12) REFUND AT TERMINATION OF SERVICE. Upon
termination of commercial or farm service, the deposit, with accrued interest,
shall be credited to the final bill, and the balance shall be returned within
30 days of issuing the final bill.
(13) ARREARAGES. An arrearage owed by a
commercial or farm customer may be deducted from the customer's deposit under
the following conditions:
(a) Except as
provided in par. (c), a deposit may be used by the utility only to satisfy an
arrearage occurring after the deposit was made.
(b) If the utility deducts an arrearage from
a customer deposit, it may require the customer to bring the deposit up to its
original amount. Failure of the customer to do so within 20 days of mailing a
written request for payment is a ground for disconnection.
(c) When a deposit is refunded to the
customer, the utility may first deduct any arrearage owed by the customer,
whether the arrearage arose prior to or after the date of the
deposit.
(14)
APPLICABILITY. The provisions of subs. (3) and (4) are not applicable to
deposits or guarantees made in connection with the financing of extensions or
other equipment.
