Section 56.302. Deposit hold period and refund

A cash deposit shall be refunded under the following conditions:

(1) Termination or discontinuance of service. Upon termination or discontinuance of service, the utility shall promptly apply the deposit of the customer, including accrued interest, to any outstanding balance for utility service and refund or apply the remainder to the customer’s account. A transfer of service from one location to another within a service area may not be deemed discontinuance within the meaning of this chapter.

(2) Credit established. When a customer establishes credit under § 56.282 (relating to credit standards), the utility shall refund or apply to the customer’s account, any cash deposit plus accrued interest.

(3) Third-party guarantor. When a customer substitutes a third-party guarantor in accordance with § 56.283(2) (relating to cash deposits; third-party guarantors), the utility shall refund any cash deposit, plus accrued interest, up to the limits of the guarantee.

(4) Prompt payment of bills. After a customer has paid bills for service for 12 consecutive months without having service terminated and without having paid a bill subsequent to the due date or other permissible period as stated in this chapter on more than two occasions or for a maximum period of 24 months, the utility shall refund any cash deposit, plus accrued interest.

(5) Optional refund. At the option of the utility, a cash deposit, including accrued interest, may be refunded in whole or in part, at any time earlier than the time stated in this section.

Notation

Cross References

This section cited in 52 Pa. Code § 56.283 (relating to cash deposits; third-party guarantors); and 52 Pa. Code § 56.304 (relating to periodic review).