Deposits 415-50-20

(Revised 11/02 ML #2829)

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Utility companies may require a cash deposit from a customer before providing electrical or natural gas service. The purpose of an advance deposit is to protect the utility company against unpaid bills. If unused after a specified period of time, deposits are generally returned to the customer, or the customer is given a credit to be applied on future costs.

 

If a customer will be receiving LIHEAP for upcoming heating bills, it is preferable that the vendor and the customer arrange for the customer to pay the required deposit himself, on an installment basis if necessary, during the time period that LIHEAP is paying his heating bills. The amount of the installments can be set so the deposit is on record by the time the LIHEAP heating season ends. This keeps the customer involved.

 

Emergency Assistance funds CANNOT be used to pay deposits.

 

The customer will be responsible to pay any required deposits, or the supplier may waive the deposit for a LIHEAP eligible customer based on LIHEAP assurance of payment of a specified amount or throughout a specified period of time, that is sufficient to maintain service and to permit the household to accumulate the required deposit.