N.Y. Comp. Codes R. & Regs. tit. 21 § 451.1

Current through Register Vol. 46, No. 50, December 11, 2024

Section 451.1 - Consumer deposits-nonresidential

(a) Deposit. Any municipality or cooperative in the State of New York which purchases power from the authority may require any nonresidential customer to whom such municipality or cooperative shall supply electricity to deposit a reasonable sum of money, according to the estimated quantity of electricity necessary to supply the consumer for two calendar months, to secure payment for such electricity.

(b) Calculation and crediting of interest. Every municipality or cooperative shall allow every nonresidential customer, from whom a deposit is required, interest on the amount deposited at a rate prescribed quarterly by the municipality or cooperative. Each quarter, the municipality or cooperative shall select the lowest interest rate available from a pool of local area bank savings accounts. The selected rate shall be used to accrue interest on consumer deposits each quarter. A weighted average interest rate shall be calculated using the quarterly interest rates over the period a customer's deposit is held; and shall be paid to the customer upon the return of the deposit.

(c) Return of deposit. If any nonresidential customer is not delinquent in the payment of bills, as defined in section 451.2(a)(5) of this Part, during the two-year period from the payment of the deposit by the customer, the deposit shall be refunded promptly without prejudice to the municipality's or cooperative's right to require a future deposit in the event that the customer thereafter becomes delinquent. As of September 1, 1986, all deposits held for more than two years must be returned promptly to nondelinquent customers, and in no event later than the next bill for service thereafter.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 451.1