BE IT RESOLVED that the Electric commissioners of the Second Taxing District herby adopt the following as its residential electric service deposit policy. All new residential customers of the South Norwalk Electric Works shall be required when opening an account prior to the turn on of electric service to place on deposit with the South Norwalk Electric Works a cash deposit in a amount equal to the following:

Type of Account Amount

Apartment Unit $ 225.00

Apartment Unit / Electric Heat $ 350.00

Single Family House $ 275.00

Single Family House / Electric Heat $ 400.00

The following procedures will be utilized by SNEW to administer the deposit program:

SNEW staff will use an application filled out by the prospective customer detailing the type of account for the premise being served.
The deposit shall be deposited into the account of SNEW in a security deposit fund, separately segregated and tracked from SNEW general funds.
Customer security deposits shall accrue monthly interest on the last day of each month at a rate equal to 1/12^th the annual approved rate. The rate shall be from time to time set by the Electric Commission.
On June 30^th of each year, SNEW shall credit to each customer’s electric service account an amount equal to the monthly interest accrued on the sum deposited. However, SNEW shall have the right to credit the interest to the customer’s deposit account if the customer’s billing history indicates the original deposit, as required by SNEW, is insufficient to cover the three highest consecutive months of electric bills for the prior one-year. SNEW may also, based on customer billing records of at least one year in length, decrease a customer’s deposit account, if it is determined that the current level of deposit exceeds the three highest consecutive bills in the prior one year by more than 25%.
Customers who discontinue electric service shall have their deposit refunded to them upon written application for disconnection by the customer. After the customer discontinues service, the customer shall receive the balance of the deposit account plus accrued interest from the last application of interest to the account, minus any bill due SNEW, calculated to the date of termination of service.
Any residential customer whose service is terminated by SNEW for non-payment of the account after the effective date of this deposit requirement, more than once in any 24 month period, shall be required prior to the reinstatement of electric service to deposit with SNEW a security deposit equal to the amount listed above.
An individual deposit will be required for each electric account opened and SNEW will not aggregate customer accounts for the purpose of blanket security deposits nor will SNEW provide security deposit discounts based on multiple accounts maintained by the same customer.
SNEW will not permit any customer to avoid termination under SNEW’s procedure for termination of service for non-payment of residential accounts by offsetting the bill due against the security deposit.
Security deposits shall be in cash (check, money order, certified check, etc.). However, SNEW may in its sold discretion , accept as an alternative to cash, a letter of credit, a payment bond, secured interest in the property being served, or any other financial instrument which SNEW deems acceptable to protect SNEW’s interest.
Any customer aggrieved by SNEW’s deposit policy may appeal the policy to the Electrical Commissioners of the Second Taxing District, at a duly noticed and constituted meeting, for a lesser or waived deposit.
Any portion of this policy or program which is inconsistent with either State Law or Regulation shall not invalidate the remainder of this policy

Commission Approved / May 1, 2002

NON-RESIDENTIAL CUSTOMER DEPOSIT PROGRAM

All new, non-residential electric customers of the South Norwalk Electric and Water shall be required, when opening an account prior to the turn on of electric service, to place on deposit with South Norwalk Electric and Water, a cash deposit in an amount equal to the cost of three months electric service. The following procedures will be utilized by SNEW to administer the deposit program.

The dollar amount of the deposit will be determined by SNEW based on an estimate of the demand and kilowatt hour usage estimated by SNEW staff. SNEW staff will use an application filled out by the prospective customer detailing the anticipated electric use for the premise being served.
The deposit shall be deposited to the account of SNEW in a security deposit fund, separately segregated and tracked from SNEW general funds.
Customer security deposits shall accrue interest daily. The rate shall be, from time to time, set by the District Commission.
On June 30^th of each year, or on the customer’s final bill, SNEW shall credit to each customer’s electric service account an amount equal to the interest accrued on the sum deposited. However, SNEW shall have the right to credit the interest to the customer’s deposit account if the customer’s billing history indicates the original deposit, as required by SNEW, is insufficient to cover the three highest consecutive months of electric bills for the prior one year. SNEW may also, based on customer billing records of at least one year in length, decrease a customer’s deposit account, if it is determined that the current level of deposit exceeds the three highest consecutive bills in the prior one year by more than 25%.
Customers who discontinue electric service shall have their deposit refunded to them on their final bill. After the customer discontinues service, the customer shall receive the balance of the deposit account plus accrued interest from the last application of interest to the account, minus any bill due SNEW, calculated to the date of termination of service.
Any non-residential customer whose service is terminated by SNEW for non-payment of the account after the effective date of this deposit requirement, shall be required, prior to the reinstatement of electric service to deposit with SNEW a security deposit equal to the three highest consecutive month’s electric service, based on the prior 12 month’s bills.
An individual deposit will be required for each electric account opened and SNEW will not aggregate customer accounts for the purpose of blanket security deposits nor will SNEW provide security deposit discounts based on multiple accounts maintained by the same customer.
SNEW will not permit any customer to avoid termination under SNEW’s procedure for termination of service for non-payment of non-residential accounts by offsetting the bill due against the security deposit.
If at anytime a customer applies for any electrical permits to increase electrical service, to add additional electrical appliances and devices or otherwise modifies the service for the purpose of obtaining additional demand or kilowatt hour usage, SNEW shall reevaluate the deposit account prior to providing the additional level of service requested.
Security deposits shall be in cash (check, money order, certified check, etc.). However, SNEW may, in its sole discretion, accept as an alternative to cash, a letter of credit, secured interest in the property being served, or any other financial instrument which SNEW deems acceptable to protect SNEW’s interests.
Any customer aggrieved by SNEW’s deposit policy may appeal to the Commissioners of the Second Taxing District, at a duly noticed and constituted meeting, for a lesser or waived deposit
The security deposit shall not be required for any account opened by the city of Norwalk including any of its various departments or agencies; the state of Connecticut or any of its departments or agencies; the United States government or any of its departments or agencies; or any public service company as defined in Section 16-1 of the Connecticut General Statutes.

Commission Approved / December 19, 2006