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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 165. Corporation Commission |
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Chapter 65. Water Service Utilities |
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Subchapter 11. Customer Service |
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Part 1. DEPOSITS AND BILLING |
SECTION 165:65-11-3. Deposits and interest
Latest version.
- (a) Each utility shall prepare and submit a plan containing criteria for deposits to the Commission for approval. The plan shall include criteria for residential and nonresidential consumers with residential being defined in each utility's tariff.(1) The residential plan shall conform to all subsections of this Section.(2) The nonresidential plan shall conform to all subsections of this Section except (b), (c), (d), and (j).(b) No utility shall require a deposit of a residential consumer who has received the same or similar type and classification of service for twelve (12) consecutive months and service was not terminated for nonpayment nor was payment late more than twice nor was a check for payment dishonored. The twelve (12) month service period shall have been within eighteen (18) months prior to the application for new service. The utility plan may establish other relevant criteria that will qualify the consumer for nonpayment of a deposit.(c) No utility shall require a deposit more than one-sixth (1/6) of the estimated annual bill. The utility may allow smaller deposits to be made, in conformance with relevant, objective criteria written in the utility's plan. The utility plan may allow consumers to pay deposits in installments.(d) Any utility that fails to maintain an accurate record of any customer's deposit history, pursuant to this section, and in accordance with 165:65-11-3(q), may not require a new deposit from that same customer should the customer request new service.(e) A utility may require an advance deposit as a condition of service for consumers other than those consumers addressed in (b).(f) A present consumer may be required to post a deposit as a condition of continued service if undisputed charges have become delinquent, with delinquent meaning a payment not received on or before the due date as posted on the bill, in two (2) of the last twelve (12) billing periods or if the consumer has had service disconnected during the last twelve (12) months or has presented a check that has been subsequently dishonored.(g) Interest on cash deposits shall be paid by the utility at no less than the rate calculated as follows:(1) For all consumer deposits returned within one (1) year or less, the interest rate shall be established on the 1st day of January of each year to equal the average of the weekly percent annual yields of one (1) year U.S. Treasury Securities for September, October, and November of the preceding year. The interest rate shall be rounded to the nearest basis point.(2) For all consumer deposits held by the utility for more than one (1) year, the interest rate shall be established the 1st day of January for each year to equal the average of the weekly percent annual yields of 10 year U.S. Treasury Securities for September, October, and November of the preceding year. The interest rate shall be rounded to the nearest basis point. The utility may pay the average of one (1) year Treasury Security, as referenced in (f)(1) of this Section, for the first year the deposit is held.(3) Provided, however, that after the interest rate is initially established pursuant to this subsection, the interest rate(s) shall not change unless the application of the formula in (f)(1) and/or (2) results in a change in interest rate(s) that is/are greater than fifty (50) basis points.(4) The PUD Director shall calculate the interest rate(s) as pursuant to (f)(1) and (2) of this Section, and shall provide notice to the utility company via mail, email, or posting on the Commission's website by December 15th of each year, pursuant to subsection (f), otherwise the current interest rate(s) will remain in effect.(h) If refund of deposits is made within thirty (30) days of receipt of deposit, no interest payment is required. If the utility retains the deposit more than thirty (30) days, payment of interest shall be made retroactive to the date of deposit. No interest shall accrue on a deposit after discontinuance of service.(i) The deposit shall cease to draw interest on the date it is returned or credited to the consumer's account.(j) The utility plan shall provide the date of payment of interest and whether the interest shall be paid by negotiable instrument or by credit against current billing.(k) Each consumer posting a cash deposit shall receive a non-assignable receipt in writing at the time of making the deposit or within the ten (10) days thereafter. When a consumer pays a deposit as a portion of a water service bill, payment of the bill shall serve as a receipt of the deposit. If the deposit is not paid by the due date, the amount of the deposit will become a part of the past due amount owed and monies paid shall be applied to the oldest past due amount. The utility plan shall provide reasonable means whereby a depositor who applies for the return of his/her deposit, or any deposit to which he/she is entitled, but who is unable to produce the original receipt may not be deprived of his/her deposit or balance.(l) The utility shall automatically refund the deposit for residential service, with accrued interest, after twelve (12) months' satisfactory payment of undisputed charges and where payment was not late more than twice; provided, however, that service has not been disconnected within the twelve (12) month period. Payment of a charge shall be deemed satisfactory if received on or prior to the date the bill is due. Payment of a charge shall be deemed not satisfactory if made by a check subsequently dishonored. The utility plan shall provide for the review of all deposits at least annually and shall provide whether refunds will be paid by negotiable instrument, upon request of the consumer, provided, the consumer's bill is not delinquent, or by credit against current billing.(m) The amount of the deposit, with accrued interest, shall be applied to any unpaid charges at the time of the discontinuance of service. The balance, if any, shall be returned to the consumer within thirty (30) days following the settlement of the consumer's account, either in person or by mailing it to the consumer's last known address.(n) The utility shall provide payment of accrued interest for all consumers annually by negotiable instrument or by credit against current billing.(o) The utility may withhold refund of return of the deposit, pending the resolution of a dispute with respect to charges secured by such deposit.(p) The utility company shall keep records to show:(1) The name, account number and address of each depositor.(2) The amount of the deposit and date received.(3) Each transaction concerning the deposit.(q) Such records shall be retained for two (2) years after deposit and/or interest is refunded or applied.(r) Upon the sale or transfer of any public utility or operating units thereof, the seller shall file with the application for transfer a verified list of all consumers from whom a deposit is being held, the date such deposit was made, the amount thereof, and the unpaid interest thereon. The information provided shall be treated as confidential and shall not be available for public inspection unless ordered by the Commission after notice and hearing.(s) Deposits shall not include membership fees in cooperatives.(t) The deposit made by the consumer with the utility at the time of application for water service shall not constitute an advance payment to cover service bills, but for all purposes it is to be considered as security for the payment of monthly bills or other proper charges.