An electric deposit is like a security deposit.  Pascoag Utility District requires a deposit for each individual electric account that is created. The amount of the deposit corresponds roughly to two months electric usage based on the heating source within the household. When the deposit is paid, the money sits on the account and accrues interest. Each November, the interest that was earned on the deposit is applied to the electric account as a credit. When you request the account to be closed, the deposit is applied to the balance that is owed. If anything remains of the deposit after applying it to your final bill, Pascoag Utility will process a check and send it out in the mail to your forwarding address. Pascoag Utility District is a not-for-profit company and requires the deposit because it helps keep our rates stable. When there are unpaid electric bills, it can cause rates to increase. A deposit helps us to minimize losses and keep electric bills lower for everyone.