Chapter 01. Nonresidential Customer Deposits

The Public Service Commission of Maryland, in these regulations referred to as the “Commission”, declares that it is in the public interest for each utility to administer fairly and without discrimination a reasonable policy reflected by written regulations, in accordance with these regulations, which will permit an applicant for permanent nonresidential service to establish, or an existing nonresidential customer to reestablish, credit with the utility for the use of its service.

The Commission further declares that when it is necessary for an applicant or customer to make a cash deposit to establish or reestablish credit in accordance with these regulations, the making of this deposit is in the public interest because it avoids, to the extent practicable, the creation of a burden arising from uncollectible bills which would have to be borne ultimately by all the utility's ratepayers.

The Commission further declares that the essential ingredient in each utility's administration of its deposit policy, as expressed by these regulations, is the equitable and indiscriminate application of that policy to all applicants for service and customers throughout its service area without regard to the economic character of the area or any part of it, and that this deposit policy shall be predicated upon the credit risk of the applicant (or customer) without regard to the collective credit reputation of the area in which the applicant does business.

A utility may require each applicant for nonresidential service to establish credit in compliance with the methods and procedures listed in §B of this regulation.

Methods of Establishing Credit.

A utility may require an applicant for service who is a present or former nonresidential customer of that utility to reestablish credit under Regulation .02 of this chapter at the time of application if one of the following exists:

A nonresidential customer who has established credit and is receiving service but who fails to pay a bill by the expiration date of a termination of service notice, may be required by the utility to reestablish credit by depositing the amount prescribed in Regulation .04 of this chapter, in addition to paying the outstanding bill and a reasonable reconnection charge.

Except as prohibited by State or federal law, a utility may refuse to connect or may disconnect service for a former nonresidential customer unless the customer has paid or made satisfactory arrangements to pay any outstanding bill, or undisputed portion of a disputed bill, for prior nonresidential service.

A utility may not refuse service to a customer for nonpayment of an outstanding bill that is over 7 years old, unless the:

Amount of Deposit. The deposit required by the utility may not be less than $5, and it may not be more than the maximum estimated charge for service for two consecutive billing periods, or 90 days, whichever is less, or as may reasonably be required by the utility in cases involving service for short periods or special occasions.

Payment of Deposit. If requested by the applicant, the utility shall provide some means by which a deposit amount of $100 or more may be paid by the customer in installments over a period of at least 8 weeks. The customer shall be notified of this right at the time of the initial request for deposit. The provisions of this section do not apply to utilities providing telephone service.

Deposit Receipt. Each utility shall issue a receipt of deposit to each customer from whom a deposit is received, and shall provide means by which a depositor may establish his claim if his receipt is lost.

Interest on Deposits.

Payment of Interest. Interest shall be paid annually, if requested by the customer, or at the time the deposit is returned.

Cessation of Interest. The obligation to pay interest on a deposit shall cease upon:

Record of Deposit. Each utility shall keep records to show:

Record of Unclaimed Deposits. A record of each unclaimed deposit shall be maintained for at least 3 years, during which time the utility shall make reasonable efforts to return the deposit.

Unclaimed Deposits. Unclaimed deposits, with accrued interest, shall be credited to an appropriate account, or shall otherwise be disposed of in accordance with Commercial Law Article, Title 17, Annotated Code of Maryland.

Discontinuance of Service. Upon discontinuance of service, the utility, within 45 days, shall automatically refund the customer's deposit plus accrued interest, or the balance, if any, in excess of the unpaid bills including any penalties assessed for service furnished by the utility. A transfer of service from one premises to another within the service area of the utility may not be deemed a discontinuance of service within the meaning of these regulations.

Good Payment Record.

Establishment of Credit. The utility shall promptly return the deposit plus accrued interest at any time upon request if the customer's credit has been established in accordance with the methods specified in Regulation .02B of this chapter, provided the customer does not owe outstanding bills for the service and meets the criteria set forth in §B of this regulation.

Option of Utility. The utility may refund a deposit plus accrued interest, in whole or in part, earlier than the times prescribed in this regulation.

Appeal to Utility Supervisory Personnel. Each utility shall direct its personnel engaged in initial contact with an applicant for service, or customer seeking to establish or reestablish credit under the provisions of these regulations, to refer the applicant or customer, at his request, to supervisory personnel for further consideration of his problem.

Appeal to Commission Personnel. Each utility shall further direct this supervisory personnel to inform the applicant or customer who expresses dissatisfaction with the decision of the supervisory personnel, of his right to have the problem reviewed by the Commission, and shall furnish him with the business address and telephone number of the Commission.