(A) After the effective date of this section the Utility Department, in addition to a service agreement, impact fees and other connection charges, will require a security deposit, as hereinafter set forth for opening new customer accounts or reconnections of customers who were disconnected for a delinquent account. Unless drawn by the town to pay a customer's past due bill, a security deposit will not be returned to any customer, so long as the utility account remains open.
(B) On the effective date of this section the Utility Department will allow customers who have had their security deposit returned because they have for two years not made a late payment on their utility account remain connected without a security deposit until they seek reconnection of their account which was disconnected for a delinquent bill. Upon reconnection unless drawn by the town to pay a customer's past due bill, the new security deposit will not be returned to any customer, so long as the utility account remains open.
(C) On the effective date of this section the Utility Department will allow all customers who signed an application for electric, gas, water and sewer service which contains the provision to return to the customer his or her security deposit if he or she has no late payments in two years still in the account's system to be carried out on the second anniversary of the signing of the application provided the customer has complied with the contingency. The security deposit of a customer who has not complied with the contingency will be held by the town until drawn by the town to pay a customer's past due bill or termination of the account. Any new account will have a security deposit.
(D) On the effective date of this section, the amount of the security deposits for opening new accounts will be as follows:
(1) Residential occupied by landowner.
(a) Electricity only deposit $100.00;
(b) Water and sewer only deposit $75.00;
(c) Gas only deposit $75.00;
(d) Electric, water and sewer deposit $150.00;
(e) Gas, water and sewer deposit $150.00;
(f) Electric and gas deposit $150.00;
(g) Electric, gas, water, sewer deposit $300.00.
(2) Should an account be later terminated for nonpayment, the town shall collect in addition to the unpaid sum, a reconnection fee and an additional $50.00 in security. Each subsequent disconnection shall raise the required deposit by $50.00.
(3) Standard commercial. A commercial business located on property with a prior billing history where the sum of the highest three bills during the prior 12 months is at a level of $999.99 or less. In the event there is no prior usage at the location of service the deposit will be three times the average uses for a 12 months period for a similar sized commercial building.
(a) Electric only deposit $200.00;
(b) Electric, water and sewer deposit $350.00;
(c) Electric and gas deposit $300.00;
(d) Water and sewer deposit $100.00;
(e) Gas only deposit $150.00;
(f) Electric, gas, water, and sewer deposit $400.00.
(4) Large commercial. A commercial business located on property with a prior billing history where the sum of the highest three bills during the prior 12 months is at a level of $1,000.00 or more. In the event there is no prior usage at the location of service the deposit will be three times the average uses for a similar sized commercial building. The initial security deposit to be determined through the use of the formula shown below.
EXAMPLE: Customer A has estimated billing cycles one, two, three. The estimated bills are; cycle one for $1,500.00, cycle two for $2,000.00, and cycle three for $990.00. The deposit is the sum of the three cycles ($4,490.00) divided by three equaling $1,946.66.
(5) Standard industrial. An industrial business having, for a period of three billing cycles, an actual or estimated usage billing for three months at a level of $999.99 or less. The security deposit is $600.00.
(6) Large industrial. An industrial business having, for a period of three billing cycles, an actual or estimated usage for three months at a level of $1,000.00 or more. The initial security deposit to be determined through the use of the formula shown below.
EXAMPLE: Customer A has estimated billing cycles one, two, three. The estimated bills are; cycle one for $3,500.00, cycle two for $2,000.00, and cycle three for $4,000.00. The deposit is the sum of the three cycles ($9,500.00) divided by three equaling $3,166.66.
(Ord. 010720, passed 2-4-2020; Ord. 010720-B, passed 1-19-2021)