New York Codes, Rules and Regulations › Title 21 - Miscellaneous › Chapter X - Power Authority Of The State Of New York › Part 451 - Consumer Deposits-municipalities And Cooperatives › Section 451.2 - Consumer deposits-residential

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				Deposit.
(1) A municipality or cooperative in
				the State of New York which purchases power from the authority may require,
				subject to the restrictions set forth in this section, a new or current
				residential customer to whom such municipality or cooperative shall supply
				electricity to deposit a sum of money, which shall be in the amount specified
				in paragraph (9) of this subdivision, to secure payment for such electricity or
				for the rental of fixtures, instruments and facilities actually
				supplied.
(2) For the purposes of
				this section, a new residential customeris an applicant for electric service to
				a dwelling unit which such customer uses for his or her residential purposes
				and where business rates do not apply to the service, and who does not qualify
				as a current residential customer. A current residential customer is a customer
				who receives electric service to a dwelling unit which such customer uses for
				his or her residential purposes and where business rates do not apply to the
				service. A current residential customer includes an applicant for electric
				service who has transferred dwelling units within a municipality's or
				cooperative's service territory and for whom there is a recent payment history.
				A seasonal customer is a person who applies for and receives electric service
				periodically each year, intermittently during the year, or at other irregular
				intervals. A short-term customer is a person who requires electric service for
				a specified period of time that does not exceed one year. A customer who
				receives continuous electric service for more than one year shall not be
				considered a seasonal or short-term customer.
(3) Unless authorized by the authority under
				paragraph (6) of this subdivision, no municipality or cooperative shall require
				any new residential customer to post a security deposit as a condition of
				receiving electric service, unless such new customer is a seasonal or
				short-term customer as defined in paragraph (2) of this subdivision.
(4) As of December 1, 1985, no municipality
				or cooperative shall, unless authorized by the authority under paragraph (6) of
				this subdivision, require a current residential customer, other than a
				delinquent customer, to post a security deposit, and deposits held on September
				1, 1986 shall be returned promptly to nondelinquent residential customers, and
				in no event later than the next bill for service thereafter.
(5) Notwithstanding the requirements of
				paragraph (4) of this subdivision:
(i) A
				municipality or cooperative may continue to demand deposits as a condition of
				receiving electric service from customers who are seasonal customers or
				short-term customers as defined in paragraph (2) of this subdivision.
(ii) A municipality or cooperative may
				require a deposit from a current residential customer as a condition of service
				if that customer is delinquent in payment of his or her electric
				bills.
(iii) A customer is
				delinquent for the purpose of a deposit assessment if such customer:
(a) accumulates two consecutive months of
				arrears without making reasonable payment, defined as one half of the total
				arrears, of such charges before the time that a late payment charge would
				become applicable, or fails to make a reasonable payment on a bimonthly bill
				within 50 days after the bill is due, provided that the municipality or
				cooperative requests such deposit within two months of such failure to pay;
				or
(b) had electric service
				terminated for nonpayment during the preceding six months.
A municipality or cooperative intending to require a deposit
				  under clause (a) of this subparagraph shall provide a customer with written
				  notice, at least 20 days before it may assess a deposit, that the failure to
				  make timely payment will permit the municipality or cooperative to require a
				  deposit from such customer.
(iv) If a municipality or cooperative
				requires a deposit from a current residential customer who is delinquent by
				virtue of his or her failure to make a reasonable payment of arrears, as
				provided in this paragraph, it shall permit such customer to pay the deposit in
				installments over a period not to exceed 12 months.
(6) Notwithstanding the requirements of
				paragraphs (3) and (4) of this subdivision, a municipality or cooperative may
				demand and hold deposits from new or current residential customers as a
				condition of electric service if the authority, after investigation and
				hearing, so authorizes such practice, upon a finding that the collection and
				maintenance of such deposits is cost-effective for the municipality or
				cooperative as a whole without regard to the municipality's or cooperative's
				cash flow and the availability of capital to the municipality or
				cooperative.
(7) No municipality or
				cooperative shall require any person it knows to be a recipient of public
				assistance, supplemental security income benefits or additional State payments,
				to post a security deposit after November 30, 1985, nor shall any municipality
				or cooperative hold such deposit from such known recipient after January 31,
				1986.
(8) No municipality or
				cooperative shall demand after November 30, 1985, or hold after January 31,
				1986, a deposit from any new or current residential customer it knows is 62
				years of age or older unless such customer has had service terminated by the
				municipality or cooperative for nonpayment of bills within the preceding six
				months.
(9) In any case where
				customer deposits are authorized by this section, a municipality or cooperative
				may require a new or current residential customer to deposit a reasonable
				amount of money, not greater than twice the average monthly bill for a calendar
				year, except in the case of electric space-heating customers, where deposits
				may not exceed twice the estimated average monthly bill for the heating season,
				in order to secure payment for services actually rendered or for the rental of
				fixtures, instruments and facilities actually supplied.