Security Deposit Policy
If a security deposit is required, the deposit is calculated at 2.5 times the average monthly bill (if available at the account location in question) from the past 12 months. Residential customers may pay the deposit in equal installments over a six-month period (or a shorter time if they wish). The deposit is held for at least one year of good payment history from the time the deposit has been paid in full for residential customers, five years for commercial/ industrial customers (less than 50 kW demand) and seven years for other commercial/ industrial customers. The deposit is refunded to the customer on their final bill if they are closing their account or it is refunded to the account at the end of the deposit period defined above as long as they maintain a good payment history.
The interest rate applied to the deposit shall be at the Prime Business Rate as published on the Bank of Canada website less 2 percent, updated quarterly. Any interest accrued will be applied to the account on a yearly basis.
Under this policy, overdue notices, disconnection orders and NSF cheques are assigned a point value of one point each. When a customer accumulates two points (for example, one overdue notice and an NSF cheque), a security deposit may be charged to the customer’s account.