Electric Plant Board

Electric Plant Board

ELECTRIC PLANT BOARD

RUSSELLVILLE, KY

RESIDENTIAL DEPOSIT POLICY

Our Deposit Policy

The Electric Plant Board’s deposit policy is designed to assess the credit risk associated with all applications for new or continued service, while protecting the assets of our utility. The deposit policy will be applied without regard of race, color, creed, sex, national origin or marital status.

It is important that every employee of the EPB understands and supports our policy of treating those customers who act responsibly and pay their bills on time with the respect their actions deserve. Likewise, we must also appreciate that it is not fair that those good-paying customers pay the financial burden of those who act irresponsibly and do not pay for their service as agreed. Thus, it is vital to our success that we adopt and strictly adhere to the policy of shifting the financial burden ofpotential bad debt away from our best customer to those who pose credit risk. This policy is aimed at accomplishing that task.

It is also important to note that some of our customers will not be charged a deposit, because they pose little credit risk. Likewise, those customers who have not established credit or pose substantial credit risk deserve to bear the financial risk of providing service to them mitigated through a credit-based deposit policy that shifts the financial burden they may pose off of our best-paying customers onto those who do, in fact, pose a risk.

This policy is based upon the use of a new, technology-based screening tool called ONLINE Utility Exchange to assess credit risk at the point of application. Potential new customers’ credit risk will be based on ONLINE’S assessment. Existing customers’ credit risk will be determined by the EPB’s automated credit rating system which assesses credit risk based on the customer’s past payment as a customer of the EPB. The EPB may rely on either system to determine the credit risk of former customers applying for new service. Deposits will be charged to those potential customers and existing customers who pose a credit risk determined by these two methods.

Deposit Criteria – New Customers

The Electric Plant Board shall consider the status of the applicant and act according to the following residential classifications andcriteria:

  1. Homeowners: Must be able to verify home ownership if requested.
  1. New-service applicants who pose little or no credit risk (Green Light returned on ONLINE Utility Exchange) will not be charged a deposit.
  2. New-service applicants who pose a moderate credit risk (Yellow Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 125.00.
  3. New-service applicants who pose a high credit risk (Red Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 250.00.
  4. A returning service applicant who has an outstanding amount due from their previous location will be changed a deposit in the amount of $ 250.00.
  1. Mobile Home (owner or rental):
  1. New-service applicants who pose little or no credit risk (Green Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 150.00.
  2. New-service applicants who pose a moderate credit risk (Yellow Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 300.00.
  3. New-service applicants who pose a high credit risk (Red Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 450.00.
  4. A returning service applicant who has an outstanding amount due from their previous location will be changed a deposit in the amount of $ 450.00.
  1. All other rental:

A.New-service applicants who pose little or no credit risk (Green Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 125.00.

  1. New-service applicants who pose a moderate credit risk (Yellow Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 250.00.
  2. New-service applicants who pose a high credit risk (Red Light returned on ONLINE Utility Exchange) will be charged a deposit in the amount of $ 375.00.
  3. A returning service applicant who has an outstanding amount due from their previous location will be changed a deposit in the amount of $ 375.00.

Any customer who desires not to have a credit check will be charged the highest deposit based on the above residential classifications.

Additional Deposit- Existing customers

An existing customer of the EPB who does not have a deposit or a deposit less than the maximum deposit may be required to pay an additional deposit in the event of any of the following:

  1. Has an EPB system rating of “NORMAL”, “POOR”, or “VERY POOR”
  2. EPB has initiated steps to discontinue service due to non-payment
  3. Has had a payment (check or automatic draft) rejected by the financial institution due to, but not limited to, a closed account or insufficient funds

Additional deposits may be required until such time as the total deposit, excluding accrued interest, equals the greater of twicethe highest monthly bill for service of customer at his/her current location over the most recent twelve-month period or the maximum based on the customer’s residential classification.

An existing customer who changes from one residential classification to another (homeowner to rental or mobile home or from rental to mobile home) and has an EPB system credit rating of “NORMAL”, “POOR”, or “VERY POOR” may have to pay an additional deposit amount to equal the amount they would have to pay if they were a new service applicant.

Interest on Deposit

An active deposit (a deposit tied to an active account) will earn interest at the current rate authorized by the Board. Interest will be calculated using a simple interest rate and will not be compounded. Interest accrued on a deposit will be paid when the deposit is refunded or applied to the customer’s account. Inactive deposits (those left by former customers) will not earn interest.

Refund of Deposit

A deposit may be refunded after a customer has had service for thirteen consecutive months at the same location, provided the customer has an EPB system credit rating of “EXCELLENT”.

Waiver of Deposit

A waiver of deposit may be granted for residential accounts where the customer meets one of the following descriptions:

  1. The City of Russellville, Logan County, the State of Kentucky or its agency, or the United States of America or its agency
  2. The service is temporary and for the purpose of preparing a single family residence to be rented or sold and the customer has other active service with the EPB for at least twelve months and the account is in good standing, EPB system credit rating of “GOOD” or “EXCELLENT’’.
  3. A church which has service for its primary place of worship with the EPB and has an EPB system credit rating of “GOOD” or “EXCELLENT”.
  4. A local non-profit or civic organization.

The waiver may be revoked based on the criteria for Additional Deposits.

Approved by the Board November 18, 2004

Revised March 20, 2005

Revised March 12, 2009

Revised June 11, 2010

Top View