(A) General Requirements. The Corporation shall determine the creditworthiness of an applicant or customer in an equitable and nondiscriminatory method without regard to the economic character of the area (or any part thereof) wherein the applicant or customer resides and shall determine the creditworthiness solely upon the credit risk of the applicant or customer without regard to the collective credit reputation of the area in which he/she lives. A consumer reporting agency (CRA) may be used to determine credit risk. If the Applicant or Member is married, or there are multiple applicants at the same service address, a deposit may be charged based on the credit risk that is highest.
(B) Criteria for Collection of Deposits
(1) Bartholomew County REMC will require from any member or prospective member, a deposit intended to guarantee payment of bills for service, establish, or re-establish electric service, if any of the following conditions exist:
(a) Applicant:
(i) Is an unsatisfactory credit risk. Credit will be determined based on previous credit with utility and by credit rating returned by credit reporting agency.
(ii) Has been a member of Bartholomew County REMC and had been disconnected for non-payment or has had more than three delinquent payments within the previous 36 months.
(iii) Had been involved in the theft of electric service or meter tampering.
(iv) Is unwilling to provide social security number to REMC for verification by credit reporting agency.
(v) Is unable to be verified by credit reporting agency.
(vi) Is a current member of Bartholomew County REMC and has been disconnected for non-payment. Maximum deposit plus all monies owed to REMC will be required paid before service will be re-established.
(2) If the applicant has any outstanding delinquency owed the Corporation or fails to establish that he/she is creditworthy pursuant to the above criteria, the applicant will be required to make a cash deposit. Criteria for level of deposit as follows:
(a) Minimum Credit Risk
(i) Applicant received a good credit assessment from credit reporting agency.
(ii) Applicant has no adverse credit history with REMC.
(iii) Deposit will be waived for applicants with minimum credit risk.
(b) Medium Credit Risk
(i) Applicant received a medium risk assessment from credit reporting agency.
(ii) Current member has had more than three past due payment with REMC within that last 12 months.
(iii) Applicant shall pay a deposit based on an average one month usage based on previous 12 month usage for location, with a minimum deposit of $50.00. For new homes with no previous usage history, deposit to be $125.00 for home with gas heat, $200.00 for home with electric heat.
(iv) Current member has had four delinquent bills in a twelve month period within the most recent two years.
(c) High Credit Risk
(i) Applicant receives a high risk assessment from credit reporting agency.
(ii) Applicant has had service with REMC and has been disconnected for non-payment, or has had an insufficient funds check, within the last 24 months.
(iii) Applicant has an outstanding past due balance with REMC.
(iv) Applicant shall pay a deposit based on an average two month usage based on previous 12 month usage for location, with a minimum deposit of $100.00. For new homes with no previous usage history, deposit to be $250.00 for home with gas heat, $400.00 for home with electric heat.
(v) Current member is disconnected for non-payment.
(C) Refunds
(1) Deposits will be held for an initial period of twelve months. After the first twelve months, deposits will be refunded if the accounts meets established payment requirement and has not been disconnected for non-payment. No interest shall be paid on deposits held.
(a) Criteria for return of deposit:
(i) Member account must be paid on time for ten months in a row or eleven of twelve consecutive months. (ii) Member has had no payment to REMC returned for insufficient funds.
(iii) Member has not been disconnected for non-payment at any time during the twelve month period.
(iv) Deposits will be credited to final bill when member request service to be disconnected. Any remaining amount will be mailed to member.