E. Security Deposits
Table of Contents
A security deposit may be required as a condition of service.
If a security deposit is required, NB Power will determine when the payment must be made:
- before service is provided, or
- on the due date of the first bill.
A security deposit is not required from Customers:
- who have a satisfactory payment history on another NB Power Account in their name, or
- who supply a credit reference from another electric utility, or
- who consent to a credit check and the results are satisfactory to NB Power.
A security deposit may be required if the customer has an unsatisfactory payment history with NB Power.
Other Rate Categories:
All new General Service, Small Industrial, streetlight, area light, unmetered and rental service Customers may be required to pay a security deposit as a condition of service except:
- municipal, provincial or federal government agencies;
- local service districts;
- publicly owned schools and hospitals;
- existing General Service and Industrial Customers with satisfactory credit history with NB Power who require a service connection at another location.
Security deposits may be in the form of cash, letters of guarantee from Chartered Canadian Banks or Trust Companies, bearer bonds guaranteed by either the Government of Canada or the Province of New Brunswick, or surety bonds issued by duly authorized companies.
The amount of security deposit for all Applicants/Customers is the greater of two average operating months' estimated billing or $100.
The interest rate for a cash deposit is set at the beginning of the calendar quarter in which it is received.
All cash security deposits shall accrue interest at a rate equal to the prime rate, as quoted by the Royal Bank of Canada, minus two per cent (2%).
This interest rate applies to Residential, General Service, and industrial deposits.
Residential, General Service and industrial Accounts are reviewed periodically and deposits will be refunded as a credit to the Account for which the deposit was held if the Customer has established a satisfactory payment history. Residential Customer deposits are reviewed twelve months after a deposit is made, General Service and industrial Customer deposits are reviewed twenty-four months after a deposit is made. If the Customer has established a satisfactory payment history then the security deposit is refunded. Otherwise an extension may be required. Interest on security deposit extensions is calculated at the interest rate prevailing at the time of the extension.