A deposit for service from OMU in the amount of one-fourth (¼) of the estimated annual charges for service, as determined by OMU, shall be required for each service location, unless otherwise provided by this policy.
A deposit may be waived in the following circumstances:
- The applicant has an acceptable payment history with OMU.
- The applicant owns the property for which service is requested and is otherwise qualified for a
- The applicant presents an acceptable letter from the applicant’s previous electric utility provider
which reports a good credit history for twelve months of service that was provided within the six months immediately preceding the application for service and, if applicable, the applicant has an acceptable credit history with OMU.
- OMU is able to confirm through a recognized credit rating entity that the applicant has a good credit history.
Applicants with a minimum of one year of continuous service with OMU within the past 18 months and who have no outstanding balance owed to OMU, had no disconnection of service, had no returned checks, and received no more than three disconnection notices will be considered to have an “acceptable payment history” with OMU.
An applicant-owner of residential 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 real property owned by the applicant.
The applicant may elect to have the applicant’s credit rating checked through OMU’s independent credit rating agency if the applicant does not otherwise qualify for a waiver of a deposit. Depending on the results of the credit check the following deposit categories will apply:
- No deposit will be required if the applicant receives a good credit rating and, if applicable; the applicant has an acceptable credit history with OMU.
- A deposit of $126 for electric service and $75 for water service for residential service will be required if the applicant receives an acceptable credit rating, but does not qualify for a good credit rating. Combined service deposits secure the entire amount of any charges and may not be apportioned between electric and water service.
- A deposit of one-twelfth (1/12) of the estimated annual charges, or $126 for electric service and $75 for water service, whichever amounts are greater, will be required from an applicant for any commercial or industrial service if the applicant receives an acceptable credit rating, but does not qualify for a good credit rating.
- A deposit of one-fourth (¼) of the estimated annual charges for service, as determined by OMU, shall be required if the customer receives an unacceptable credit rating. Combined service deposits secure the entire amount of any charges and may not be apportioned between electric and water service.
charges for services before service will be restored.
Deposits can be paid in installments based on the applicant-customer’s previous payment history with OMU.
Any remaining portion of a deposit with applicable interest will be refunded to the applicant-customer after the deposit has been applied against the final balance due or after applicant achieves 24 consecutive months of acceptable payment history, which ever first occurs. However, OMU may, in its sole discretion, apply any amount that would otherwise be refunded to a customer, in whole or in part, to any other account of customer that is past due.
If a customer’s service is disconnected for non-payment, OMU may require, in addition to the payment of all unpaid balances and reconnection charges, a deposit equal to one-fourth (¼) of the annual estimated charges for services before service will be restored.
OMU will pay interest on a customer’s deposit in an amount equal to that determined under KRS 278.460(1), as it existed on July 21, 2012, effective for interest payable after December 31, 2012; provided, however, that the interest payable will not exceed the rate that OMU receives in interest on the deposit. The interest paid shall, at OMU’s discretion, either accrue to the deposit account or be credited to customer’s billing account at such times as OMU may determine.
Effective: January 1, 2013