N.H. Admin. Code § En 1203.03

Current through Register No. 50, December 12, 2024

Section En 1203.03 - Deposits

(a) As a condition of new residential service, a utility may require a deposit, or a written guarantee or direct debit account as provided for in (i) below, in the following circumstances:

(1) When the customer has an undisputed overdue balance, incurred within the last 3 years, on a prior account with the utility or any similar type of utility, as described in (c) below;

(2) When any utility has successfully obtained a judgment against the customer during the past 2 years for non-payment of a delinquent account for utility service;

(3) When the utility has disconnected the customer's service within the last 3 years because the customer interfered with, or diverted, the service of the utility situated on or about the customer's premises; or

(4) When the customer is unable to provide satisfactory evidence to the utility that the customer intends to remain at the location for which service is being requested for a period of 12 consecutive months, as described in (b) below, unless the customer provides satisfactory evidence that they have not been delinquent in their similar utility service accounts for a period of 12 months, as described in (b) below, in which case no deposit shall be required.

(b) For purposes of (a)(4) above, the following shall apply:

(1) Satisfactory evidence of intent shall consist of a copy of the customer's deed, lease, or letter from a landlord and shall be provided within 30 days of the deposit request; and

(2) Satisfactory evidence of non-delinquency shall consist of written statements by a representative of the similar utility service.

(c) For purposes of (a) and (b) above, the following utilities shall be considered to be similar utilities:

(1) For electric utilities, gas or electric utilities;

(2) For gas utilities, gas or electric utilities:

(3) For water utilities, water utilities; and

(4) For sewer utilities, sewer utilities.

(d) A utility's request for a deposit, as a condition of new residential service, shall be made within 30 calendar days of initiating new service.

(e) As a condition of existing residential service, a utility may require a deposit, or a written guarantee or a direct debit account as provided for in (i) below, in the following circumstances:

(1) When the customer has received the following number of disconnect notices for nonpayment from the utility within a 12-month period:

a. For customers billed monthly, 4 disconnect notices; and

b. For customers billed quarterly, 2 disconnect notices;

(2) When the customer's service has been disconnected for non-payment of a delinquent account;

(3) When the utility has disconnected the customer's service because the customer interfered with, or diverted, the service of the utility situated on, or delivered on or about, the customer's premises; or

(4) When the customer has filed for bankruptcy and listed the utility as a creditor under the filing, and the filing has been accepted, in which case the deposit requirement shall be in accordance with 11 U.S.C. § 366.

(f) As a condition of any service other than residential service, a utility may require a deposit.

(g) As part of any residential deposit request, the utility shall inform the customer, orally and in writing, of the following:

(1) That the deposit shall be waived if the customer provides evidence of financial hardship unless the customer has previously interfered with, or diverted, the service of the utility situated on, or delivered on or about, the customer's premises;

(2) That a customer claiming financial hardship shall present evidence of financial hardship to the utility on an annual basis; and

(3) The option to provide a third-party guarantee in lieu of a deposit pursuant to (i)(1) below or, if offered by the utility, establish a direct debit account in lieu of a deposit pursuant to (i)(2).

(h) As part of any deposit request to a customer other than a residential customer, the utility shall inform the customer, orally and in writing, of the option to provide a third-party guarantee in lieu of deposit pursuant to (i)(1) below, or, if offered by the utility, establish a direct debit account pursuant to (i)(2) below in lieu of a deposit.

(i) In lieu of a deposit, a utility shall:

(1) Accept the irrevocable written guarantee of a responsible party such as a social service organization, a municipal welfare agency, a bank, or a customer in good standing of the utility as a surety for a customer service account. For purposes of this subparagraph, "customer in good standing" means a customer who has not received any disconnection notices during the preceding 12 months; or

(2) With the agreement of both the utility and the customer, establish a direct debit account whereby the customer's payment shall be automatically debited from his or her bank account each month.

(j) Any irrevocable written guarantee referenced in (i)(1) above shall:

(1) Be in writing;

(2) Include the maximum amount guaranteed; and

(3) Specify that the utility shall not hold the guarantor liable for the sums in excess of the maximum amount guaranteed unless agreed to in a separate written agreement.

(k) The responsible party assuring the guarantee referenced in (i)(1) above shall be released from liability and no further deposit shall be required from the customer at the point in time when all bills have been paid without delinquency for 12 consecutive months for a residential customer and 24 consecutive months for a non-residential customer.

(l) When a direct debit account is established in lieu of a deposit in accordance with (i)(2) above, the utility shall have the right to go back to the customer and request a deposit if the automatic withdrawal from the customer's account fails for 2 successive months as a result of insufficient funds in the customer's bank account.

(m) Any deposit required pursuant to En 1203.03 shall be subject to the following terms and conditions:

(1) The amount of deposit shall be:

a. No less than $10; and

b. No more than 2 times the average monthly bill, calculated as described below:

1. For new utility customers, the average monthly bill shall be determined by estimation based on the following:

(i) Customer information about the prior customer at that service address; and

(ii) Customer specific characteristics; and

2. For current utility customers, the average monthly bill shall be based on either:

(i) Actual past bills from the prior 12 months; or

(ii) If current utility customers have less than 12 months of actual service, the average monthly bill shall be determined pursuant to (m)(1)b.1. above;

(2) All deposits shall accrue simple annual interest from the date of deposit to the date of termination;

(3) Interest shall accrue at a rate equal to the prime rate;

(4) When a deposit has been held longer than 12 months, interest shall be credited to the customer's current bill not less than annually;

(5) The entire deposit plus interest accrued shall be refunded when all bills have been paid without arrearage for 12 consecutive months for a residential customer and 24 consecutive months for a non-residential customer;

(6) With the agreement of the customer, deposits plus the interest accrued thereon may be applied against the current bills until the balance of the deposit is exhausted;

(7) Upon termination of service, the deposit plus interest accrued less any amount due the utility shall be refunded within 60 calendar days of the date of termination;

(8) A utility shall maintain a detailed record of all deposits received from customers showing:

a. The name of the customer or customers;

b. The location of the service;

c. The date the deposit was made;

d. The amount of the deposit;

e. The amount of interest accrued;

f. The date refunded to the customer; and

g. Any amount credited to the customer's account;

(9) The record required by (8) above shall be maintained by the utility for a period of 3 years subsequent to refunding the customer's deposit;

(10) Either by mail or in person, a utility shall provide each customer with a receipt for any deposit, containing, at a minimum:

a. The name of the customer or customers;

b. The location of the service;

c. The date and amount of the deposit payment; and

d. A statement of the terms and conditions governing the receipt, retention, refund, and payment of interest, and the payment and refund of deposits, pursuant to En 1203.03; and

(11) The utility shall offer the customer the opportunity to pay the deposit in installments as follows:

a. Except as otherwise negotiated pursuant to (11)b. and (11)c. below, payment shall be in 3 monthly installments with the first payment due upon demand, the second payment due within 30 calendar days, and the final payment due within 60 calendar days, provided that:

1. The first payment shall be for no more than the average monthly bill for utility service calculated as provided in En 1203.03(m)(1)b; and

2. The second and third payments shall be in equal installments of the remainder due;

b. Nothing shall prohibit the utility from negotiating payment of the deposit over a period longer than 3 months;

c. Nothing shall prohibit the customer from negotiating payment of the deposit over a period shorter than 3 months; and

d. Payment of the deposit in installments shall not relieve the customer of the obligation to pay the current bill in a timely manner.

(n) A utility shall not require a residential customer to make a deposit or furnish a guarantee as a condition of new or continued service based upon income, home ownership, residential location, race, color, creed, sex, gender identity, sexual orientation, marital status, age, national origin, or disability and shall make such requirement only in accordance with En 1203.03.

(o) A customer may request a conference with the department staff within 7 calendar days from receipt of the utility's request for a deposit if the customer is dissatisfied with a utility's request for deposit.

(p) Service disconnections resulting from the enforcement of En 1203.03 shall be delayed pending department resolution of the customer's request for a conference pursuant to (o) above.

(q) As part of any deposit request, the utility shall inform the customer, orally and in writing, of the customer's rights and responsibilities as described in (o) above.

N.H. Admin. Code § En 1203.03

Derived from Number 24, Filed June 13, 2024, Proposed by #13986, Effective 5/30/2024, Expires5/30/2034 (see Revision Note at chapter heading for En 1200).