A deposit for service from Owensboro Municipal Utilities in the amount of one-fourth (¼) of the estimated annual charges for utility service, as solely determined by OMU, shall be required for each service location account, unless otherwise provided by this Policy.
Deposit Waiver
A deposit may be waived or reduced, if any of the following circumstances apply:
- The applicant has a good payment history with OMU.
- Good payment history with OMU requires the applicant to have a minimum of one year of continuous service with OMU within the past 18-month period and during such one-year period, the applicant had no disconnection of service for non-payment, no returned payments, and received no more than three disconnection notices. Also, the applicant has no outstanding balances with OMU.
- The applicant owns the property for which service is requested and if applicable, has a good payment history with OMU.
- The applicant-owner of the property must show acceptable proof of ownership for the real property for which service is sought. Property being purchased under a contract does not qualify as property owned by the applicant.
- The applicant presents a letter from the applicant’s previous utility provider which reports a good credit history for twelve months of service that was provided within the six-month periods immediately preceding the service application and, if applicable, the applicant has a good credit history with OMU.
- The applicant receives a good credit rating as determined and verified by OMU’s independent and recognized credit agency.
- This option requires the applicant to provide OMU written authorization to have the applicant’s credit assessed by an independent credit agency if the applicant does not otherwise qualify for a waiver of a deposit under any of the previously mentioned methods and has not had services with OMU in the past twelve-month period.
Deposit Categories
The table below shows which applicants must provide a deposit and the amount, if one is required.
| Category | Description | Residential Deposit | Commercial Deposit |
|---|---|---|---|
| No Deposit | Good credit rating with Credit Agency; OR meets any of the waiver requirements | None | None |
| 1/12 Deposit | Fair credit rating with Credit Agency | Electric: $180 Water: $120 Internet: 1/12 of estimated annual charge | 1/12 of estimated annual charges |
| ¼ Deposit | Standard deposit requirement | ¼ of estimated annual charges | ¼ of estimated annual charges |
Deposit Refund & Interest
Any portion of a deposit with applicable interest that remains after the deposit has been applied against the final balance due, or after the applicant achieves 24 consecutive months of good payment history, whichever first occurs, will be refunded to the applicant-customer. However, OMU may, in its sole discretion, apply the remainder of a deposit amount to any account associated with the customer that would otherwise be refunded.
A customer will earn interest equal to that determined under KRS 278.460(1); provided, however, such interest will not exceed the rate that OMU receives in interest on the deposit. The interest paid shall, at OMU’s sole discretion, either accrue to the deposit account or be credited to the customer’s billing account at such times as OMU may determine.
Any refunded deposit balance that remains unclaimed shall be handled as provided under applicable law.
Additional Provisions
- Based on the customer’s previous payment history with OMU, and at OMU’s sole discretion, deposits can be paid in installments.
- If the customer experiences bankruptcy, has a delinquent payment history with OMU, or if service was disconnected for non-payment, OMU at its sole discretion may require, in addition to the payment of all unpaid balances and any reconnection charges, a deposit equal to one-fourth (¼) of the annual estimated charges for services before service will be restored.
- At OMU’s sole discretion, service may be refused or discontinued for failure to pay the requested deposit.
- Notwithstanding any of these policy provisions, a customer who has unsealed, opened, damaged, rewired, altered, or who has in any way tampered with OMU’s meter or service equipment, or who has diverted or stolen service, shall pay a deposit equal to one-fourth (¼) of the annual estimated charges for services and such deposit shall be retained by OMU as long as the customer remains on service. Upon termination of service, the deposit and applicable interest will be applied against the final balance due on any account of the customer, with any remainder refunded to the customer.
Revised June 2024