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Residential Deposit Policy

ELECTRIC PLANT BOARD

RUSSELLVILLE, KY

RESIDENTIAL DEPOSIT POLICY


Purpose

The purpose of this Deposit Policy is to outline the guidelines and procedures for accepting and processing

deposits to ensure consistency, security, and compliance with applicable rules and regulations. This policy

aims to protect both the institution and its customers by establishing clear expectations for deposit required

to establish electric service with the EPB. By setting forth these standards, the policy seeks to promote

transparency, reduce risks associated with deposit handling, and maintain trust in the financial operations of

the organization.

General Guidelines

1. EPB’s Deposit policy will be applied without regard of race, color, creed, sex, national origin, or

marital status.

2. Deposits may or may not transfer from one location to another.

3. Upon termination of service, deposits will be applied against any unpaid balance or charges for

non-returned or damaged equipment.

4. Any remaining amount will be returned to customer, either by check or by applying the balance

of the deposit to any active account of the customer.


Security Deposit - New Customers

Customers establishing electric service will be required to provide a deposit and a government issued

photo ID before service is supplied. Enrolling in Standard billing will require a deposit of $250 and

enrolling in Pre-Pay billing will require a deposit of $50. Fixed deposits will be based on class averages.

Additional Security Deposit - Existing customers

An existing customer of the EPB who does not have a deposit, or who has 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,

approximately equals twice the highest monthly bill for service of customer at his/her current location over

the most recent twelve-month period.

Interest on Deposit

All cash deposits greater than one month’s average bill and retained longer than twelve months shall accrue

interest at the current rate authorized by the Board, which shall not be less than the interest earned on LPC’s

primary bank account. Interest will be calculated using a simple interest rate and will not be compounded.

Interest will accrue annually on a deposit and will be paid when the deposit is refunded or applied to the

customer’s account. The deposit balance including earned interest is subject to review by customer and LPC.


Approved by the Board: 01/09/2025

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