§ 41-693. Electric service deposits; interest; letters of credit.

(a)

Every person making application for electric service with the city shall make a deposit in the amount of $50.00 at the time the application is made with the director of finance for purposes of guaranteeing payment of the monthly electric bill; provided, for commercial and business establishments or uses, if the average monthly electric bill for the last preceding 12-month period of electric service should exceed the amount of $50.00, the amount of deposit required for such commercial and business establishment or use shall be equal to an amount as determined to be such average monthly electric bill for the last preceding 12-month period of electric service. Provided further, for commercial and business establishments or uses, on or before the first day of the 16th month of electric service, the amount of deposit required, upon application of the establishment, shall be adjusted to an amount as determined to be such average monthly electric bill for the first 12-month period of electric service. The deposit required by this section shall bear interest at the rate of six percent per annum, payable on all such deposits held by the city on December 31 of each year. Interest shall be prorated from the day such deposit is made and shall be credited to the customer-consumer's electric bill next following December 31 of each year.

(b)

In lieu of the cash deposit required by subsection (a) of this section, commercial and business establishments or uses may give an irrevocable letter of credit, designating the city as beneficiary, for purposes of guaranteeing payment of the monthly electric bill. Any letter of credit so given shall be renewed annually. Failure to keep such letter of credit current by such annual renewal shall be treated in the same manner as failure to pay a monthly electric bill, and shall result in disconnection of electric service in accordance with the provisions of section 41-699.

(Code 1966, § 18-53; Code 1982, § 30-303; Ord. No. 1845, § 2, 6-18-1979; Ord. No. 2038, § 1, 11-8-1982; Ord. No. 2084, § 1, 8-1-1983)