Security deposits
What you need to know
A security deposit will be required prior to the establishment of residential electric service and is based on a customer’s credit score (not average bills). Should the customer refuse to furnish Cullman Power Board (CPB) with the needed information to use the credit score system, the security deposit required: ($400) (due to the credit risk). In normal situations the security deposit amount will be based on the customer’s credit rating as follows: Good $75, Fair $200, Poor $300.
Management has discretionary authority to determine the amount of “security deposit” needed: for example, when there is questionable customer information that would pose as a risk for CPB’s receivables or other considerations.
For general power customers (GSA - Commercial), a deposit amount based on historical business use should be in the area of (near or below) twice the highest estimated bill required for the rate classification. CPB’s intention is to not exceed TVA’s recommendation of twice the highest bill; therefore, periodically from time to time deposit amounts may be adjusted based on payment history (risk) and other historical factors. CPB realizes how quickly circumstances can change with customer’s payment schedules and usage.
A suitable guarantee, Bank letter of credit or other security deemed acceptable by CPB may be accepted in lieu of a deposit for commercial customers only.
Interest will accrue on active deposits held longer than twelve months at the interest rate CPB earns on its passbook savings accounts (updated annually). Interest will be applied (credit) to customer’s active account at end of December each year and will show on January’s billing statement for customer’s review. Customers may inquire or request information concerning their deposits and the interest paid through the CPB office at any time.
The deposit balance will be credited to the customer’s final or unpaid bills upon termination of electric service or upon return of the deposit to the customer. When and if CPB offers a pre-pay program, customers will not be required to provide a security deposit. (Reference: (RR) Rules and Regulations #2)