§ 117 — Consumer deposits

New York § 117

• Jurisdiction: New York
• Law PBS: Public Service
• Art. 6: Provisions Affecting Two or More Kinds of the Public Service and the Persons and Corporations Furnishing Such Service

Text

§ 117. Consumer deposits. Except as the right to require deposits is\nfurther limited by section thirty-six of this chapter, a gas\ncorporation, an electric corporation, a gas and electric corporation, a\nwater corporation, a steam corporation, a telegraph corporation, a\ntelephone corporation or a municipality rendering equivalent utility\nservices may, unless prohibited by the commission, require any person to\nwhom such corporation or municipality shall supply gas, electric, water,\nsteam, telegraph or telephone services to deposit a reasonable sum of\nmoney according to the estimated quantity of such services necessary to\nsupply the same for two calendar months, to secure payment for such\nservices actually rendered, or for the rental of fixtures, instruments\nand facilities actually supplied, but every such corporation and\nmunicipality shall allow to every such depositor interest at a rate per\nannum to be prescribed from time to time, at least annually, by the\ncommission in the light of current economic conditions and current\ncharges paid for other moneys borrowed by such corporation or\nmunicipality, and the expenses incurred by such corporation or\nmunicipality in obtaining, handling and returning or crediting the sum\ndeposited, on the sum or sums so deposited, payable upon the return of\nthe deposit or at earlier intervals as hereinafter prescribed. Whenever\nsuch deposit has been held for a period of one year, the interest\naccrued on such deposit shall be credited to the depositor on the first\nbilling for utility service rendered after the next succeeding first day\nof October. If the depositor was not delinquent in the payment of any\nbill in such one year period, the deposit shall be refunded promptly at\nthe end thereof, but without prejudice to the right to require a deposit\nthereafter in the event of a delinquency or where it can be shown that\nthe financial condition of a business customer is such that it is likely\nthat the customer may default in the future, and to retain such deposit\nfor a prudent period; except that subject to such regulations as the\ncommission may establish, if the deposit is for utility service rendered\nto a business, the deposit may be retained for a prudent period beyond\nsuch a one year period. No provider of utility services shall require of\nits customer within its service area a new security deposit where such\ncustomer was not required to post a security deposit or had a security\ndeposit returned pursuant to this section and such customer establishes\na new residence and continues service with the same provider of utility\nservices.\n