§ 36 — Residential service deposits

§ 36. Residential service deposits. 1. On and after January first,\nnineteen hundred eighty-two, no utility corporation or municipality\nshall require any new residential customer, other than a seasonal or\nshort term customer, to post a security deposit as a condition of\nreceiving utility service. In addition, no utility corporation or\nmunicipality shall after the first day of September, nineteen hundred\neighty-two, or such earlier date as the commission may determine,\nrequire a current residential customer to post a security deposit other\nthan such a customer who is delinquent according to standards set by the\ncommission. Deposits held on the first day of September, nineteen\nhundred eighty-two, or such earlier date as the commission may\ndetermine, shall be returned to the customer immediately, but not later\nthan the next bill for service; provided, however, that this provision\nshall not apply to deposits of delinquent customers. No utility\ncorporation or municipality shall require any known recipient of public\nassistance, supplemental security income benefits or additional state\npayments to post a security deposit as a condition of receiving service.\n 2. Notwithstanding the provisions of subdivision one of this section,\nthe commission, after investigation and hearing, may authorize any\nutility corporation or municipality to require and hold security\ndeposits from residential customers or applicants for service upon a\nfinding that the collection and maintenance of such deposits is cost\neffective to the utility as a whole without regard to cash flow and the\navailability of capital.\n 3. In any case where customer deposits are authorized by this section,\na utility corporation or municipality may require a customer or\napplicant for service to deposit a reasonable sum of money according to\nthe estimated quantity of such services necessary to supply the customer\nor applicant for service for two months, to secure payment for such\nservices actually rendered, or for the rental of fixtures, instruments\nand facilities actually supplied. Every such utility corporation and\nmunicipality shall allow to every such customer or applicant for service\ninterest on the sum deposited at a rate per annum to be prescribed from\ntime to time and at least annually by the commission in light of current\neconomic conditions and current charges paid for moneys borrowed by such\nutility, taking into account the expenses incurred by such utility in\nobtaining, handling, returning or crediting the sum deposited. Such\ninterest shall be paid upon the return of the deposit, provided however,\nthat whenever such deposit has been held for a period of one year, the\ninterest shall be credited to the customer or applicant for service on\nthe first billing for utility service rendered after the end of such\nperiod. If a customer or applicant for service is not delinquent in the\npayment of any billing during such one year period, the deposit shall be\nrefunded promptly at the end thereof, without prejudice to the utility's\nor municipality's right to require a deposit thereafter in the event of\na delinquency. All utility corporations and municipalities shall exempt\nfrom deposit requirements any customer or applicant for service who is\nsixty-two years of age or older, unless the customer or applicant for\nservice is a bad credit risk according to standards set by the\ncommission.\n