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 shall 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 (2) times the average bill for that customer class.
Deposit Receipt
1. The Association will issue to the applicant a receipt for the amount of the deposit.
2. The Association will not require the member to produce the deposit receipt to receive a refund of the deposit.
Deposit Waiver
Deposit requirements shall be waived or refunded within ninety (90) days if the applicant is able to meet any of the following conditions as set forth in Section 6.9(a) of the Association's Tariff:
1. The applicant has received service from the Association at another location within the past two (2) years with no more than one (1) delinquency in payment during the last twelve (12) consecutive months of service, or
2. The applicant provides a credit reference letter from a former utility showing no more than one (1) delinquency in payments during the last twelve (12) months of consecutive service, or
3. A residential membership will not qualify as a business membership for a deposit waiver. New businesses with no established credit will be required to pay a deposit.
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 delinquent in the last twelve (12) months, and is not past due at review; or
2. Termination of service, to the extent the amount held exceeds any balance due to 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 a 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 consumer who has a deposit on file and whose use has increased materially may be required to add to their current deposit with the Association, upon request. The total required deposit may not exceed the Association's estimate of two (2) times the consumer's average monthly bill. The deposit will be applied to the members monthly bill, and the member will have 30 days to pay the deposit. The unpaid deposit will constitute a past-due amount after the 30 days.
2. Impaired Credit
If a member is delinquent and after three (3) consecutive months on the non-pay list, and/or an increase in usage by more than 50 percent occurs, an increased or new deposit will be required. Deposits will be added to the member’s monthly bill.
If service has been disconnected due to nonpayment, the Association may increase the deposit to three (3) times the 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.