It is the policy of NSBU to require a deposit to guarantee the payment of any and all indebtedness for electric, water, wastewater, and reuse water service, or otherwise, which may be or may become due to NSBU for utilities used on a service address. This deposit is made with the express understanding and agreement that all or any part thereof may be applied by NSBU at any time in satisfaction of said guarantee, and that NSBU may use said deposit as fully as if it were the absolute owner thereof as follows:
For customers on residential service, the required deposit for electric service shall be determined by utility credit history, should it be determined a deposit is necessary. The minimum deposits for residential service shall be $75 and the maximum shall be $240.
General Service Account (Commercial)
For customers on a General Service rate, the required deposit shall be two times the average monthly bill, as estimated by NSBU. In the event NSBU determines that the deposit is not sufficient to cover two times the actual average monthly bill, an adjustment to the required deposit may be made. In any event, the minimum deposit for all General Service account shall be $75.
The security deposit for water account based on the various meter sizes offered is as follows:
Wastewater (Sewer) Service
The security deposit for wastewater accounts based on the various meter sizes offered is as follows:
In the event only wastewater service is furnished by NSBU and no water services, the deposit for the account will be determined by NSBU prior to providing service.
Reuse Water Service
The security deposit for reuse water service based on the various service/meter sizes offered is as follows:
For reuse water service only. Existing NSBU customers are exempted.
In the event the utility service is disconnected for non-payment or has received two or more returned checks within a 12- month period, NSBU will require a deposit(s) sufficient to cover at least two times the average monthly billing, or the maximum metered service deposit, whichever is greater. If such additional deposit is not made within the agreed-upon time frame, NSBU may disconnect services in accordance with policy.
The customer will be billed for the deposit(s) and will have 10 days to pay said deposit(s). If the customer does not pay the deposit(s) within the 10 day period, utility services will be subject to disconnect. Installment arrangements may be made the discretion of New Smyrna Beach Utilities. In some cases, full payment of the deposit will be required before service connection is made (such as the customer's previous final balance going to a collection agency).
An applicant for electric, water, wastewater, and/or reuse water services will not be required to make a deposit when the applicant meets one of the following conditions:
1. Has an existing account with good credit standing with NSBU. Discontinuance of service for non-payment on an existing account will be treated as new applicant for deposit requirements.
2. Any new customer establishing services will have their credit checked with their Social Security number as verified by the "On-Line Utility Exchange" or any other provider of similar services. NSBU will perform one credit check for each new account opened. Based on the results, the customer may or may not be required to pay a deposit.
NSBU will not transfer a deposit from one individual to another individual. Transfers of deposit(s) one one address to another address for the same individual will be made provided the account balance at the active service location is in a current status (outstanding balance is zero).
If a customer transfers his or her deposit to an account within the system, the final bill on the old account, if delinquent, will be transferred to the current account for collection and the current account become subject to collections and disconnect procedures. Customers that are continuously delinquent are subject to an update of their deposit requirements.
Deposits must be made by cash, check, Visa, MasterCard, Discover, money order, or New Smyrna Beach Utilities approved aid voucher. Credit cards will not be accepted for deposits over $1,000.
1. The customer is required to pay the full deposit at the time the account is being established.
2. When the required combined total deposit exceeds $1,000, the applicant, at his or her option, may furnish in lieu of cash, the following instruments:
- A surety bond for the full amount required; OR,
- An irrevocable letter of credit satisfactory to NSBU for the full amount required.
3. In the event the above instruments mature, NSBU reserves the right to request cash (legal tender) for the required deposit.
4. Failure to comply with this requirement will result in discontinuance of service.
Refunds of Deposits
For residential accounts only, NSBU will credit the deposit to the customer's account when:
1. The customer has paid bills for the previous 24 consecutive residential billings without having serviced disconnected for non-payment; AND
2. Without having more than two occasions on which a bill was delinquent for the previous 24 months; AND
3. When a customer has not had any returned checks within a 24-month period; AND
4. When a customer has a credit history rating of "good" or higher within a 24-month period.
The deposits are refundable only to the customer whose name appears thereon.
Interest on Customer Deposit
The interest rate is determined by NSBU each year, and will be credited to the customer's account each month beginning with the first full month of service.
Record of Deposit
New Smyrna Beach Utilities will keep electronic records to show:
- Name, address, and Social Security number of each depositor.
- Amount and date of deposit.
- Each transaction concerning deposit.
NSBU will issue a receipt of deposit to each applicant from whom a deposit is received.
A record of each unclaimed deposit will be maintained and NSBU will make a reasonable effort to return the deposit.
Interest Rate Update
New Smyrna Beach Utilities sets the interest rate paid on customer account deposits based on interest earned. The current annual interest rate is 0.005%. This interest rate can change in March of each year.