Deposits

Deposit Policy

1. The Association requires a separate deposit for each meter. Said deposit shall be deemed as security for the payment of unpaid bills upon termination of service and shall not impair any right of the Association to terminate service as provided by the Rules and Regulations.

2. The deposit can be equal to the Association's estimate of two (2) times the service location's average monthly bill or, in the absence of customer history at a specific service location, two times the average bill for that customer class.

Deposit Receipt

1. The Association will issue to the applicant a written receipt for the amount of the deposit with conditions and terms for refund.

2. The Association will not require the member to produce the deposit receipt in order to receive a refund of the deposit.

Deposit Waiver

Deposit will be waived or refunded within ninety (90) days if applicant is able to meet any of the following conditions as set forth in Section 6.10(a) of the Association's tariff:

1. The applicant has received service from the Association at another location within the past two years without delinquency in payment during the last 12 consecutive months of service, or

2. The applicant provides a credit reference letter from a former utility showing no delinquency in payments during the last twelve (12) months of consecutive service, or

3. Another member of the Association accepts financial responsibility for the applicant's residential account by executing a Guarantor Agreement (CVEA Form 426). The member guaranteeing the billings of the applicant must otherwise qualify for deposit waiver as provided for in the Association's tariff (Section 6.10).

Deposit Refunds

The Association will refund your deposit, plus any accrued interest on deposits over $100, within thirty (30) days after the earlier of:

1. Twelve (12) months of continuous service, if the consumer has not been past due in the payment of utility bills more than twice, has not been delinquent in the last six months, and is not past due at review; or

2. Termination of service, to the extent the amount held exceeds any balance due the Association for electric service, late fees, and finance charges.

Deposit Transfer

When a consumer transfers to a new service location and otherwise does not qualify for deposit waiver or refund of a deposit paid, a second deposit is required. If the consumer supplies the final meter reading at the prior location and pays in full the final billing for the prior location, then the consumer's deposit will be transferred to the new service location.

1. If the deposit required at the new service location is greater than the deposit currently held by the Association, then the consumer must pay the additional amount prior to receiving service at the new location.

2. If the deposit required at the new service location is less than the deposit currently held by the Association, then the excess will be applied to the first bill at the new service location.

Increased Deposit

1. Increased Usage

a. A member who has a deposit on file whose credit with the Association is impaired and whose use has increased materially may be required to add to the member's current deposit with the Association.

b. The member will be given thirty (30) days to pay the increased deposit requirement. The unpaid deposit will constitute a past-due amount after thirty (30) days.

2. Impaired Credit

In the event the member becomes delinquent in payment, the member may be requested to redeposit with the Association an amount equal to, but not more than, the Association's estimate of two times the member's average monthly bill.

Deposit Deferral

1. The Association will provide deferred payment deposit arrangements to residential consumers in cases where a consumer demonstrates clear economic hardship.

2. Interest will not be paid on deferred deposits until the deposit is fully funded by the consumer.

Interest on Deposits

1. The Association will pay interest as required by AS 42.05.365 on deposits that exceed $100 for a single meter.

2. If delinquent payments result in disconnection of service, the Association will not pay interest on the deposit for twelve (12) months after re-establishing service.