{"operation":"document","citation":"4 CCR 723-4 Rule 4403","title":"Applications for Service, Customer Deposits, and Third-Party Guarantee Arrangements","source_type":"regulation","agency":"Colorado Public Utilities Commission","status":"current","official":true,"published_on":null,"effective_on":null,"summary":"(a) A utility shall process an application for utility service that is made either orally or in writing and shall apply nondiscriminatory criteria with respect to the requirement of a deposit prior to commencement of service. Nondiscriminatory criteria means that no deposit or guarantee, or addition","machine_formats":{"json":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4403.json","markdown":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4403.md"},"app_url":"https://regulus.evalyn.ai/document/co-ccr-4-723-4-4403","source_url":"https://www.sos.state.co.us/CCR/DisplayRule.do?action=ruleinfo&ruleId=2260&deptID=18&agencyID=96&deptName=Department%20of%20Regulatory%20Agencies&agencyName=Public%20Utilities%20Commission&seriesNum=4%20CCR%20723-4","body":"(a) A utility shall process an application for utility service that is made either orally or\nin writing and shall apply nondiscriminatory criteria with respect to the\nrequirement of a deposit prior to commencement of service. Nondiscriminatory\ncriteria means that no deposit or guarantee, or additional deposit or guarantee,\nshall be required by a utility because of race, sex, creed, national origin, marital\nstatus, age, number of dependents, source of income, disability, or geographical\narea of residence.\n(b) All utilities requiring deposits shall offer customers at least one payment\nalternative that does not require the use of the customer’s social security\nnumber.\n(c) If billing records are available for a customer who has received past service from\nthe utility, the utility shall not require that person to make new or additional\ndeposits to guarantee payment of current bills unless the records indicate recent\nor substantial delinquencies.\n(d) A utility shall not require a deposit from an applicant for service who provides\nwritten documentation of a 12 consecutive month good payment history from the\nutility from which that person received similar service. For purposes of this\nparagraph, the 12 consecutive months must have ended no earlier than 60 days\nprior to the date of the application for service.\n(e) A utility shall not require a deposit from an applicant for service or restoration of\nservice who is or was within the last 12 months, a participant in the Low-Income\nEnergy Assistance Program or in an income qualified program consistent with\nrule 4412, or who received energy bill assistance from Energy Outreach\nColorado within the last 12 months.\n(f) If a utility uses credit scoring to determine whether to require a deposit from an\napplicant for service or a customer, the utility shall have a tariff that describes, for\neach scoring model that it uses, the credit scoring evaluation criteria and the\ncredit score limit that triggers a deposit requirement.\n(g) If a utility uses credit scoring, prior payment history with the utility, or customer-\nprovided prior payment history with a like utility as a criterion for establishing the\nneed for a deposit, the utility shall include in its tariff the specific evaluation\ncriteria that trigger the need for a deposit.\n\n(h) If a utility denies an application for service or requires a deposit as a condition of\nproviding service, the utility immediately shall inform the applicant for service of\nthe decision and shall provide, within three business days, a written explanation\nto the applicant for service stating the specific reasons why the application for\nservice has been denied or a deposit is required.\n(i) No utility shall require any surety other than either a deposit to secure payment\nfor utility services or a third-party guarantee of payment in lieu of a deposit. In no\nevent shall the furnishing of utility services or extension of utility facilities, or any\nindebtedness in connection therewith, result in a lien, mortgage, or other interest\nin any real or personal property of the customer unless such indebtedness has\nbeen reduced to a judgment. Should the guarantor terminate service or terminate\nthe third party guarantee before the customer has established a satisfactory\npayment record for 12 consecutive months, the utility, applying the criteria\ncontained in its tariffs, may require a deposit or a new third party guarantor.\n(j) The total deposit a utility may require or hold at any one time shall not exceed an\namount equal to an estimated 90 days' bill of the customer, except in the case of\na customer whose bills are payable in advance of service, in which case the\ndeposit shall not exceed an estimated 60 days' bill of the customer. The deposit\nmay be in addition to any advance, contribution in aid of construction or\nguarantee required by the utility tariff in connection with construction of lines or\nfacilities, as provided in the extension policy in the utility's tariffs. A deposit may\nbe paid in installments.\n(k) A utility receiving deposits shall maintain records showing:\n(I) the name of each customer making a deposit;\n(II) the amount and date of the deposit;\n(III) each transaction, such as the payment of interest or interest credited,\nconcerning the deposit;\n(IV) each premise where the customer receives service from the utility while\nthe deposit is retained by the utility;\n(V) if the deposit was returned to the customer, the date on which the deposit\nwas returned to the customer; and\n(VI) if the unclaimed deposit was paid to the energy assistance organization,\nthe date on which the deposit was paid to the energy assistance\norganization.\n(l) Each utility shall state in its tariff its customer deposit policy for establishing or\nmaintaining service. The tariff shall state the circumstances under which a\ndeposit will be required and the circumstances under which it will be returned. A\n\nutility shall return any deposit paid by a customer who has made no more than\ntwo late payments in 12 consecutive months.\n(m) Each utility shall issue a receipt to every customer from whom a deposit is\nreceived. No utility shall refuse to return a deposit or any balance to which a\ncustomer may be entitled solely on the basis that the customer is unable to\nproduce a receipt.\n(n) The payment of a deposit shall not relieve any customer from the obligation to\npay current bills as they become due. A utility is not required to apply any deposit\nto any indebtedness of the customer to the utility, except for utility services due\nor past due after service is terminated.\n(o) A utility shall pay simple interest on a deposit at the percentage rate per annum\nas calculated by the Commission staff and in the manner provided in this\nparagraph.\n(I) At the request of the customer, the interest shall be paid to the customer\neither on the return of the deposit or annually. The simple interest on a\ndeposit shall be earned from the date the deposit is received by the utility\nto the date the customer is paid. At the option of the utility, interest\npayments may be paid directly to the customer or credited to the\ncustomer's account.\n(II) The simple interest to be paid on a deposit during any calendar year shall\nbe at a rate equal to the average for the period October 1 through\nSeptember 30 (of the immediately preceding year) of the 12 monthly\naverage rates of interest expressed in percent per annum, as quoted for\none-year United States Treasury constant maturities, as published on the\nwebsite or publication of the Board of Governors of the Federal Reserve\nSystem. Each year, the Commission staff shall compute the interest rate\nto be paid. If the difference between the existing customer deposit interest\nrate and the newly calculated customer deposit interest rate is less than\n25 basis points, the existing customer deposit interest rate shall continue\nfor the next calendar year. If the difference between the existing customer\ndeposit interest rate and the newly calculated customer deposit interest\nrate is 25 basis points or more, the newly calculated customer deposit\ninterest rate shall be used. The Commission shall send a letter to each\nutility stating the rate of interest to be paid on deposits during the next\ncalendar year. Annually following receipt of Commission staff’s letter, if\nnecessary, a utility shall file by advice letter or application, as appropriate,\na revised tariff, effective the first day of January of the following year, or on\nan alternative date set by the Commission, containing the new rate of\ninterest to be paid upon customers’ deposits, except when there is no\nchange in the rate of interest to be paid on such deposits.\n\n(p) A utility shall have tariffs concerning third-party guarantee arrangements and,\npursuant to those tariffs, shall offer the option of a third party guarantee\narrangement for use in lieu of a deposit. The following shall apply to third-party\nguarantee arrangements:\n(I) an applicant for service or a customer may elect to use a third-party\nguarantor in lieu of paying a deposit;\n(II) the third-party guarantee form, signed by both the third-party guarantor\nand the applicant for service or the customer, shall be provided to the\nutility;\n(III) the utility may refuse to accept a third-party guarantee if the guarantor is\nnot a customer in good standing at the time of the presentation of the\nguarantee to the utility;\n(IV) the amount guaranteed shall not exceed the amount which the applicant\nfor service or the customer would have been required to provide as a\ndeposit;\n(V) the guarantee shall remain in effect until the earlier of the following occurs:\n(A) the guarantee is terminated in writing by the guarantor;\n(B) if the guarantor was a customer at the time of undertaking the\nguarantee, the guarantor ceases to be a customer of the utility; or\n(C) the customer has established a satisfactory payment record, as\ndefined in the utility's tariffs, for 12 consecutive months.\n(VI) Should the guarantor terminate service or terminate the third party\nguarantee before the customer has established a satisfactory payment\nrecord for 12 consecutive months, the utility, applying the criteria\ncontained in its tariffs, may require a deposit or a new third party\nguarantor.\n\n(q) A utility shall pay all unclaimed monies, as defined in § 40-8.5-103(5), C.R.S.,\nthat remain unclaimed for more than two years to the energy assistance\norganization. “Unclaimed monies” shall not include: undistributed refunds for\novercharges subject to other statutory provisions and rules and credits to existing\ncustomers from cost adjustment mechanisms.\n(I) Monies shall be deemed unclaimed and presumed abandoned when left\nwith the utility for more than two years after termination of the services for\nwhich the deposit or the construction advance was made or when left with\nthe utility for more than two years after the deposit or the construction\nadvance becomes payable to the customer pursuant to a final\nCommission order establishing the terms and conditions for the return of\nsuch deposit or advance and the utility has made reasonable efforts to\nlocate the customer.\n(II) Interest on a deposit shall accrue at the rate established pursuant to\nparagraph (o) of this rule commencing on the date on which the utility\nreceives the deposit and ending on the date on which the deposit is paid\nto the energy assistance organization. If the utility does not pay the\nunclaimed deposit to the energy assistance organization within four\nmonths of the date on which the unclaimed deposition is deemed to be\nunclaimed or abandoned pursuant to subparagraph (q)(I) of this rule, then\nat the conclusion of the four-month period, interest shall accrue on the\nunclaimed deposit at the rate established pursuant to paragraph (o) of this\nrule plus six percent.\n(III) If payable under the utility’s line extension tariff provisions, interest on a\nconstruction advance shall accrue at the rate established pursuant to\nparagraph (o) of this rule commencing on the date on which the\nconstruction advance is deemed to be owed to the customer pursuant to\nthe utility’s extension policy and ending on the date on which the\nconstruction advance is paid to the energy assistance organization. If the\nutility does not pay the unclaimed construction advance to the energy\nassistance organization within four months of the date on which the\nunclaimed construction advance is deemed to be unclaimed or abandoned\npursuant to subparagraph (q)(I) of this rule, then at the conclusion of the\nfour-month period, interest shall accrue on the unclaimed construction\nadvance at the rate established pursuant to paragraph (o) of this rule plus\nsix percent.\n(r) A utility shall resolve all inquiries regarding a customer’s unclaimed monies and\nshall not refer such inquiries to the energy assistance organization.\n(s) If a utility has paid unclaimed monies to the energy assistance organization, a\ncustomer later makes an inquiry claiming those monies, and the utility resolves\nthe inquiry by paying those monies to the customer, the utility may deduct the\n\namount paid to the customer from future funds submitted to the energy\nassistance organization.","truncated":false,"body_characters":12179}