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
1) The following amounts will be collected
from residential customers for whom MMED is required, under
this policy, to collect a deposit:
Type of Account
Small Electric Account
Typical Electric Account
Known Electric Heating Account
Note: MMED's Business Manager will determine,
the time the account is set up and based on prior
billing of the account, which accounts will
qualify as “small” and “typical”.
2) Deposits will be collected in the
form of check, credit card or money order 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 deposit is collected from the Customer.
In addition to the deposit a returned check fee
will be charged to the Customer – see Section 907
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
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