CHAPTER III
CUSTOMER SERVICE POLICIES

SECTION 3.1 - Customer Deposits.

A deposit intended to guarantee partial payment of bills for service may be required from either existing or new customers. A person other than the account holder may pay the deposit.

a. Criteria For Initial Service Deposits

An initial service deposit may be required of an applicant if any of the following criteria exits:

1. Recent past payment history with any City of Hawarden Utility is unsatisfactory.
2. The applicant has no or insufficient, credit history with the City of Hawarden Utilities.
3. The applicant has no credit or unsatisfactory credit with another utility provider.
4. Incomplete application.

b. Criteria For New or Additional Service Deposits:

A new or additional deposit may be required of a current customer whose initial deposit has been refunded or is found to be inadequate. The amount of a new or additional customer deposit shall be based on the deposit calculation criteria listed in 3.1c.

A new or additional deposit may be required from customers who meet any of the following criteria:

1. The customer has received two 12-day disconnect notices in the last 12 months.
2. The customer has two NSF check notices or two ACH Reject notices, or a combination of the two, in the last 12-month period. If the customer has had service less than 12 months, the number of notices will be prorated.
3. Diversion of utility services or evidence of fraud in the use of Utility Services.
4. For those that have an existing deposit, where there are large increases in the utility usage resulting in a bill of 20% or more than the initial deposit.

c. Utility Deposit Calculation:

If it is determined a deposit is necessary, the amount of the deposit will be calculated as provided below:

Gas, Electric, Water, Sewer and Solid Waste Deposits - The amount of an initial service deposit will be no more than the actual, or estimated, maximum charge for one month’s service in the last 12 month period. A reasonable deposit may be required for a temporary or special occasions. In calculating customer deposits, adjustments may be made by reasonably determining differences in the likely level of energy consumption including number of persons served, changes in the type of service (i.e. residential vs. nonresidential), the installation or removal of energy conservation or alternative energy measures, and utility rate changes or charges.

Where the service connection was not previously metered, the maximum charge for one month’s service shall be based on comparable existing service of the same utility.

Analog and Digital CableTV, and Telephone Deposits - The amount of an initial service deposit will be as follows:

Analog and Digital Cable TV- One Month Service for programming and equipment rental, plus all taxes and fees.

Telephone Local Service - One month’s local service, plus all applicable taxes and fees.

Telephone Long Distance - Actual average usage over previous two months from previous long distance carrier or a minimum of $50 ($25 per month) if previous usage data does not exist or cannot be obtained. An additional deposit shall be required when the monthly long distance charges exceed the monthly deposit by more than 25% and $20.

d. Interest On Deposits.

Interest at a rate of 2% compounded annually will be paid on deposits from the date of deposit to the date of refund or the billing date of any bill to which the deposit is applied. The date of refund is the date on which the refund or the notice of deposit refund is forwarded to the depositor’s last known address. For telephone deposits the rate shall be as specified by IAC 199 Chapter 22 or 7.5% whichever is less.

e. Deposit Receipts.

The Utility shall issue a receipt of deposit to each customer from whom a deposit is received, and will also provide a means whereby a depositor may establish claim if the receipt is lost.

f. Record of Deposits.

The Utility shall maintain a record of all deposits indicating:

1. The name and address of the person(s) making deposit or portion thereof.
2. The amount and date of the deposit or portion thereof.
3. The property location and specific account for which the deposit has been made.
4. Each transaction concerning the deposit.

g. Refund/ Application of Deposits.

A deposit will be refunded after 12 consecutive months of prompt payment (which includes eleven timely payments and one automatic forgiveness of late payment). This time may be extended when the Utility has reason to believe that continued retention of the deposit is required to insure the payment for future billings for services. The records of a customer not eligible for a deposit refund on the first deposit anniversary date will be reviewed on subsequent anniversary dates to determine refund eligibility. If necessary, deposits will be applied equally to any unpaid utility of the combined utility group. Upon termination of service, the deposit and accrued interest (if any) less any unpaid billing shall be reimbursed to the person who made the deposit if the remaining deposit balance is greater than $1.00.

Deposits made by a third party are intended for the specific property location or service and will be applied to any unpaid utility, telephone or cable bill for which the deposit was originally required. If all bills are paid, the deposit can be returned to the third party.

h. Unclaimed Deposits.

A record of each unclaimed deposit shall be maintained for at least 1 year from the date service is terminated. During that period, the Utility will make a reasonable effort to return the deposit. Deposits remaining unclaimed one year after termination of service will be transferred to the State of Iowa in accordance with Chapter 556, Code of Iowa “Disposition of Unclaimed Property”.