RESIDENTIAL CUSTOMER DEPOSIT POLICY

501–Deposit Policy. Customer deposits will be collected from residential customers who rent the premises they will inhabit and when the electric account will be in their name.  Deposits will be collected at the time the account is set up.  The amount of deposit listed below will approximate 3 highest months of charges on the particular account, based on an analysis of the history of that account by the Department’s Business Manager.

1) The following amounts will be collected from residential customers for whom MMED is required, under this policy, to collect a deposit:

2) Deposits will be collected in the form of cash, check or credit card payments.

3) If the deposit is made by check the account is not considered active until the check clears.  If the check does not clear the electric service will be shut off until a cash deposit is collected from the Customer. In addition to the cash deposit a returned check fee will be charged to the Customer – see Section 907 Returned Check.

4) All deposits collected will be held until the account is closed.

5) All accounts shall accrue interest, which will be credited to the account annually, in accordance with the provisions of M.G.L. Chapter 164, Section 58A.

6) If a customer moves from one rental unit to another rental unit within the town, the deposit that the customer held on the old account will be transferred to the new account.  If the class of service is not comparable (i.e. if the customer moves into an electric heat unit but was not in one previously, etc.), an additional deposit may be required or a portion of the deposit may be returned, depending on the amount of deposit previously held and the amount of deposit required on the new unit.

7) Deposits will not be required from residential home owners because of the Department’s ability to place a lien on the customer’s property for unpaid electric service.

8) After one year of service a Customer may appeal to MMED to have the amount held on deposit reduced. MMED will examine the previous usage and compute 3 highest months of charges on the particular account. If the computed amount is less than the amount of the deposit held than a refund of the difference will be given to the Customer. If the computed amount is more than the amount of the deposit held than no refund of the deposit will be given to the Customer.

9) If the Customer of record dies and the account is closed, the deposit will be refunded to the heirs of the Customer of record.

 

Approved By Mansfield Board of Light Commissioners July 6, 2005
Revised By Mansfield Board of Light Commissioners October 16, 2006