(A) The town shall require an applicant for new residential utility service to pay a utility deposit, or satisfactorily establish credit, with the town before utility service will be made. The town may waive the payment of a cash deposit in lieu of, and based upon, an individual applicant’s establishment of credit as follows:
(1) If the applicant owns the premises to be served, or other real estate within the town utilizing town utilities, unless the applicant is an unsatisfactory credit risk;
(2) The applicant demonstrates that he or she is a satisfactory credit risk by appropriate means which may be quickly, and inexpensively, checked by the town;
(3) The applicant has been a customer of the town for a similar type of service within a period of 24 consecutive billings preceding the date of application, and during the last 12 consecutive billings for that prior service has not had service discontinued for nonpayment of a bill, or had more than two occasions in which a bill was not paid when it became due; provided, the average periodic bill for such previous service was equal to at least 50% of that estimated for the new service; and, provided further, that the credit of the applicant is unimpaired; or
(4) The applicant furnishes a satisfactory guarantor to secure payment of bills for the service requested in an amount as prescribed below in the town’s utility deposit rate schedule. If an applicant elects to offer a guarantor in lieu of paying a deposit, the town will require a written commitment from the guarantor in an amount as mentioned above. If an applicant becomes delinquent in his or her utility payments, and is utilizing a guarantor, payment will be required of the guarantor within 15 days from notice to the guarantor that the customer has been delinquent. If any guarantor ever fails to render payment under this section, he or she may not serve as a guarantor for anyone thereafter.
(B) The establishment of credit under the provisions of this policy shall not relieve the applicant for service, or the customer from compliance with the reasonable regulations of the town including, but not limited to, the prompt payment of bills, and the rules for discontinuance of service for the nonpayment of bills due for service furnished.
(C) Other applicants for new residential utility service shall be required to make a deposit guaranteeing payment of charges for utility service, as provided in this article.
(D) The town shall require a deposit from a customer who was not required to make a deposit when he or she applied for, and obtained, new residential utility service if, during any consecutive 12 billings for that prior service, he or she had service discontinued for nonpayment of a bill; or had more than two occasions in which a bill was not paid when it became due; or had one of his or her checks given in payment of a bill dishonored. The town may require any customer who has had a check dishonored in payment of a bill to pay all utility bills in cash only.
(E) No money given to the town as utility deposit shall be placed in an interest-bearing account, and upon refund of any deposit, a customer shall not be entitled to any interest thereon.
(Code 1976, § 6.101) (Ord. 12-79, passed 11-5-1979)