No guarantee will be required for commercial/industrial customers whose monthly electric usage is not anticipated to exceed five thousand (5,000) kilowatt hours. A utility bond, irrevocable letter of credit, or cash deposit equal to two (2) months bill will be required for all new commercial and industrial accounts whose monthly usage is anticipated to exceed five thousand (5,000) kilowatt hours. The guarantee amount will not exceed twice the highest monthly bill. The electric security amount will be determined by the amount of kW demand requested by the customer in CED's power contract and/or the kWh loading information supplied by the customer. If billing information is available at the given location, previous history may be used to determine the guarantee amount. When a cash deposit is paid in full, interest will be paid on an annual basis. Interest will be credited to customer deposit balance in January of each calendar year based on the previous calendar year average annual interest rate earned on the primary deposit account less bank fees. Customers may review deposit balance including interest credit. Additional information can be found in Customer Service Policy 3.2. Each separate meter shall require an appropriate guarantee regardless of the number of meters provided for a single customer or single premise. Existing commercial/industrial accounts that are scheduled for non-pay cut-off two or more times in a twelve month period shall be required to provide security as stated above. If a bond or letter of credit expires or is cancelled, the service will be terminated. A power contract shall be required for commercial and industrial customers whose electric service is greater than 300 kW. The power contract referred to herein shall be in conformity with the requirements of the power contract between the Tennessee Valley Authority and the City of Cookeville, Tennessee. The electric department shall draft such contracts as the requirements of each customer's situation requires and deliver the same to the new customer and to the existing customers whose level of demand for service changed so as to require a new contract. The contract shall be tendered to the customer for execution. If the customer fails to enter into said contract, such failure shall constitute a delinquency in that account.
(Ord. #015-10-28, October 2015)