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.

5. The deposit policy is designed to protect the assets of our utility.

Security Deposit - New Customers

Every applicant for non-residential service will be required to provide a security deposit not to exceed two (2) times the average usage for a twelve-month period for each location where service is requested. In the event no billing history is available for the location - or if the business activity at that location will differ significantly from previous operations - determinants such as customer class and demand and energy loading will be used to establish deposit requirements.

The deposit may be in the form of cash, Irrevocable Letter of Credit from a local bank, or for deposits requiring an

amount of $5000 or greater, a surety bond. If a Security Bond is used in lieu of deposit, the customer must sign and

agree to the terms of the LPC’s Security Bond form, including but not limited to a 60-day notice before termination of

said bond. Business registration documents or credentials (such as a business license or W9), or a valid government

issued photo ID from the owner/responsible party, will be required to establish service.

Additional Security 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.

4. There is a material difference between LPC’s deposit on hand and Customer’s average bill over the last 12 months.

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