(f) The customer requests service at a household that was inhabited by the
applicant during a period in which all or a part of a prior past due service account was
incurred by another household member who still resides at the household, if, at the time
of the request for service, the account remains unpaid and is not in dispute.
(g) The customer is unable to provide prior utility service history information
with any Michigan utility during the last 6 years.
(h) The service of the customer has been discontinued for nonpayment of a
delinquent account that is not in dispute.
(2) A utility shall maintain a detailed record of all deposits received from
customers. The record shall show all of the following information:
(a) The name of the customer.
(b) The location of the premises occupied by the customer at the time of making the
deposit and each successive location while the deposit is retained.
(c) The date of making, and the amount of, the deposit.
(d) The dates and amounts of interest paid.
(3) Each customer who posts a cash deposit shall receive, in writing, at the time of
tender of deposit funds, a receipt as evidence thereof, which shall contain all of the
following information:
(a) Name of customer.
(b) Place of payment.
(c) Date of payment.
(d) Amount of payment.
(e) Identifiable name and signature of the utility employee who receives payment.
(f) A statement of the terms and conditions governing the receipt, retention, and
return of deposit funds.
(4) A cash deposit that is required pursuant to the provisions of these rules is subject
to all of the following terms and conditions:
(a) A deposit shall not be more than an amount equivalent to twice the average
monthly bill for the premises, except that a utility that utilizes a bimonthly or quarterly
billing cycle may collect a deposit not more than an amount equivalent to the average bill
for 1 billing period plus 30 days.
(b) Interest at the rate of 9% per annum shall be payable on all deposits. Interest
shall be credited semiannually upon the service account of the customer or paid upon the
return of the deposit, whichever occurs first.
(c) Upon termination of service, the deposit, with accrued interest, shall be
promptly returned to the customer or credited to the final bill.
(d) The credit of a customer shall be established and a deposit and accrued
interest shall be refunded promptly by the utility upon satisfactory payment by the
customer of all proper charges for utility service for a period of 12 consecutive months.
For purposes of this rule, payment is satisfactory if made before the issuance of a
notice of discontinuation of service for nonpayment not in dispute or within 3 days after
issuance of the next succeeding monthly bill, whichever is sooner. Deposits for
unauthorized use, diversion, or interference may be retained by the utility for a period of
24 months and shall be refunded upon satisfactory payment of the final 12 months of
charges.
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