Md. Code Regs. 20.30.01.04

Current through Register Vol. 51, No. 22, November 1, 2024

Section 20.30.01.04 - Deposit

A. Amount of Deposit. The deposit required by the utility may not be less than $5, and it may not be more than the maximum estimated charge for service for two consecutive billing periods, or 90 days, whichever is less, or as may reasonably be required by the utility in cases involving service for short periods or special occasions.

B. Payment of Deposit. If requested by the applicant, the utility shall provide some means by which a deposit amount of $100 or more may be paid by the customer in installments over a period of at least 8 weeks. The customer shall be notified of this right at the time of the initial request for deposit. The provisions of this section do not apply to utilities providing telephone service.

C. Deposit Receipt. Each utility shall issue a receipt of deposit to each customer from whom a deposit is received, and shall provide means by which a depositor may establish his claim if his receipt is lost.

D. Interest on Deposits.

(1) Each utility shall pay simple per annum interest on a deposit from the date of receipt by the utility.

(2) The rate of the interest in §D(1) of this regulation shall be a weighted monthly average of calendar year rates appropriate to the holding period.

(3) Calendar Year Rates.

(a) The calendar year rates shall be established in December of each year to be effective January 1 of the following year.

(b) The rate shall be equal to the average of the percent yields of 1-year treasury constant maturities for September, October, and November of the preceding year.

E. Payment of Interest. Interest shall be paid annually, if requested by the customer, or at the time the deposit is returned.

F. Cessation of Interest. The obligation to pay interest on a deposit shall cease upon:

(1) The date it is returned;

(2) The date service is terminated; or

(3) The date notice is sent to the customer's last known address that the deposit is no longer required.

G. Record of Deposit. Each utility shall keep records to show:

(1) The name and address of each depositor;

(2) The amount and date of the deposit;

(3) Each transaction concerning the deposit (a deposit waiver is not considered a transaction).

H. Record of Unclaimed Deposits. A record of each unclaimed deposit shall be maintained for at least 3 years, during which time the utility shall make reasonable efforts to return the deposit.

I. Unclaimed Deposits. Unclaimed deposits, with accrued interest, shall be credited to an appropriate account, or shall otherwise be disposed of in accordance with Commercial Law Article, Title 17, Annotated Code of Maryland.

Md. Code Regs. 20.30.01.04

Regulation .04D amended effective November 18, 1985 (12:23 Md. R. 2221); March 1, 1993 (20:4 Md. R. 372)
Regulation .04F amended effective November 18, 1985 (12:23 Md. R. 2221)
Regulation .04I amended effective September 21, 2009 (36:19 Md. R. 1438)