§ 51.030 DEPOSITS AND PERMITS.
   (A)   The following Deposit Requirement Schedule shall be applicable for all applicants for electric utility service of the town:
Deposit Requirement Schedule
Customer Type
Amount
Deposit Requirement Schedule
Customer Type
Amount
Residential home (owner occupied) if total electric
$150
Residential home (nonowner occupied) if total electric
$150
Residential apartment if total electric
$150
Residential home (owner occupied) if partial electric
$150
Residential home (nonowner occupied) if partial electric
$150
Residential apartment if partial electric
$150
Apartment houses, multiple-residential dwelling units, and mobile home courts, where each unit is not separately metered
Amount equal to the estimate cost of electric to be used for a three-month period as determined by the Town Manager, or an amount equal to $150 times the total number of units (apartments, mobile homes), at the option of the Town Manager
Any customer on C, CI, or S rate
15% of the active 12 months’ electric charges at the service address (including taxes), rounded to the nearest $100. If the service is at a new address, the 12-months’ charges will be estimated, based upon the type and size of the customer as compared to similar types and sizes of customers. Deposits are subject to periodic review, after which, the deposit may be adjusted to more accurately reflect the 15% requirement.
 
      (1)   When a previously-terminated account customer (nonowner or owner occupied) returns to establish a new account after a period of time has elapsed, and the prior account for utility service previously established a history of being past due with the Hagerstown Electric Utility, the town may double the regular deposit amount as provided above, and any amounts due or written off as bad debts must be paid, and any collection or legal fees paid to outside agencies must be reimbursed before a new account will be established.
      (2)   If an active account (nonowner or owner occupied) continually becomes or remains past due (determined by the application of three or more penalty charges against the account for late payment), or service has been disconnected due to nonpayment, a deposit equal to double the schedule established above may be required for continuation of or re-establishment of service.
      (3)   The owner-occupied residential deposit is required as set forth in the schedule above before electric utility service will be rendered.
         (a)   The deposit may be waived, however, and the owner deemed creditworthy, if the owner applicant provides written confirmation from the owner’s preceding utility company or companies (with Hagerstown Electric Utility also qualifying as a preceding utility company) that the owner is creditworthy, the confirmation covering a previous two-year period and verifying that the applicant:
            1.   Has been a customer of the previous utility(ies) within the past two years;
            2.   Is not past due on any bill at this time for service rendered by the previous utility(ies);
            3.   Within the past one year, did not have more than one bill which was delinquent to any utility; and
            4.   Within the past two years, did not have a service disconnected by any utility for nonpayment of a bill for services rendered by the utility.
         (b)   If the owner-occupied applicant has not had service with any utility company within the past two years, he or she must make a deposit as set forth in the schedule above. After two years, the deposit may be refunded subject to the conditions set forth below in the division addressing refunds.
      (4)   The nonowner-occupied residential deposit is required as set forth in the schedule above before electric utility service will be rendered. When a nonowner residential customer who is a current nonowner residential customer of the Hagerstown Electric Utility moves to a new account (different location/address), a new application for utility service shall be required. The previous deposit will normally be transferred to the new account, however, if the customer has developed a history of being past due, the old deposit shall stay with the old account and a new deposit shall be required for the new account. In this event, the deposit required on the new account may be double the regular deposit requirement. The old deposit will be applied to the current and final bills of the old account, and the balance, if any, will be refunded. If the old account is past due on the moving date, a new account will not be established until the old account is brought current. If the nonowner applicant fails to pay the old account in full, the service will not be re-established until the property owner has paid the balance of the old account. If, after the final bill is prepared, the old deposit is not sufficient to cover the remaining charges of the old account and the old account becomes past due, the new account will be subject to service termination or disconnect as though the two accounts were one. When planning a move, the business office of the town should be given sufficient notice, the notice to be a minimum of three business days, so that services can be terminated on the planned date of vacating the premises. No additional deposit shall be required of a person with a current electric account having made a deposit pursuant to the deposit schedule provided if the person should change his or her name, nor shall a surviving spouse be assessed an additional deposit upon transferring an account from the deceased spouse’s name to the surviving spouse’s name, provided that the account of the person or surviving spouse is paid current and within the past one year, the account did not have more than one bill which became delinquent, and within the past two years, the account did not have service disconnected for nonpayment. Additionally, the town may require that the person, after his or her name is changed, or the surviving spouse, as the case may be, complete an application for utility service.
      (5)   Commercial, industrial, institutional, and government accounts (those on C, CI, or S rate) shall be required to pay a deposit before electric utility service will be rendered, the amount of which shall be determined by the above schedule. If an account continually becomes or remains past due (determined by the application of three or more penalty charges against the account for late payment), or service has been disconnected due to nonpayment, a deposit equal to double the amount determined by the above schedule will be required for continuation of or reestablishment of service. If an account is disconnected because of nonpayment, the deposit will be used to defray any or all of the existing balance. Upon re-establishing the required deposit balance (a surety bond may be required in order to cover the increased amount), the payment of reconnect charges and payment of any charges not covered by the deposit and/or surety bond, services will be restored. If a commercial, industrial, institutional, or government deposit is more than $200, the customer/applicant shall be allowed one of two options as follows.
         (a)   To make weekly installment payments until the total deposit requirement is paid in full. The first payment shall be at least $200 and installment payments shall not continue beyond eight weeks. Service shall be connected upon receipt of the first such payment, but may be terminated at any time, without notice, upon failure by the applicant or customer to make the agreed upon installment payments and/or utility bill payments when due; or
         (b)   To provide an assigned surety bond from an approved underwriting company for the deposit requirement. Service shall be connected upon receipt of the surety bond.
   (B)   (1)   Cash deposits will be applied to the customer’s final bill after which the balance, if any, will be refunded. Interest will not be paid on any part of the deposit. Any balance due from the customer after application of the deposit shall be due and payable on or before the date specified on the final bill.
      (2)   Residential owner-occupied cash deposits may be refunded after two years, if requested in writing, and, if the following conditions are met: within the 12 month period preceding the date of the request, the owner/occupant did not have more than one bill which became delinquent, and within the 24 months preceding the date of the request, the owner/occupant did not have service disconnected for non-payment. Non-residential surety bonds will be canceled and returned to the principal within a reasonable time after all final charges are paid.
      (3)   If the application of this chapter creates a refunded amount to be given to the customer, the Clerk-Treasurer is authorized to refund to a customer, without further act of Town Council, an amount not exceeding the amount of the full deposit of the customer.
   (C)   Any person requesting temporary use of electric power shall secure a permit from the Town Electric Utility. The permit shall be valid for only the use as stated in the application and shall expire at the end of the use. The fee for the permit shall be $50 for single-phase installations and further; two-phase installations shall be the cost of the installation as determined by the Town Manager, and shall be used to defray the electric utility’s cost in providing the drop and setting the meter base and removing same after temporary usage has been completed. The Town Manager shall make the determination if in fact the requested usage is deemed as temporary use. Temporary users shall comply with all other provisions of this chapter as to rates and regulations of the Electric Utility.
(Ord. 7-1992, passed 12-21-1992; Am. Ord. 2-2005, passed 4-4-2005; Am. Ord. 3-2009, passed 3-17-2009; Am. Ord. 10-2015, passed 11-16-2015)