MVEC may require a security deposit from all Commercial and Industrial business members (including builder and developer accounts), per the cooperatives Schedule of Charges if the following conditions exist:
1. A business or business location demonstrates a history of high failure risk, as measured by two or more bad debt losses within a three year period. A deposit will be required even though the proprietor may have a satisfactory credit score. In such cases, the deposit term shall be indefinite, or
2. In an unauthorized manner, the member has interfered with or diverted the service of MVEC.
3. When a member receives a disconnection notice. (Note: deposit requirements are location specific).
A deposit can be avoided if the member:
- Signs up for Automatic Bill Pay (funds are automatically withdrawn from the member’s bank account each month) or,
- Signs up for Pay as you Go billing (pending program availability) and applies to accounts with no demand rate component.
Capital Credit Assignment
In lieu of a deposit, for any account with billings greater than $250/month, the member is required to sign a Capital Credit security agreement. The agreement is filed with the State of Minnesota and expires five years from the date of filing, provided the last 12 months of the agreement period reflect “on time” member payment(s).
- If the member fails to make timely payments within this last 12 month period, the Capital Credit Security Agreement will be renewed for another five years.
- If Capital Credits (less generation and transmission margins of Capital Credits) do not equal two months deposit of the estimated monthly bill, the member will also be required to pay the difference as a deposit requirement.
For any account that has a billing less than $250/month, no Capital Credit agreement will be administered. The member is required to pay the deposit, sign up for Automatic Bill Pay, or Pay as you Go billing.
Deposit Billing
If the member requests removal from Automatic Bill Pay or Pay as you Go billing less than one year from the start date, a new deposit will be applied to the member’s account.
When a member’s existing deposit is below MVEC’s Schedule of Charges by $100 (or more), and the member has at least one site visit in the past twelve months. they will be billed for the increase. Members are not allowed to sign up for Automatic Bill Pay or Pay as you Go billing to avoid an increase in their deposit.
NOTE: a deposit will be applied to any account that has two returned payments.
Deposit Return
Return of a deposit may be applied to the bill when it becomes delinquent, and as approved by MVEC’s Collections Representative or VP of Finance.
MVEC will return the deposit to the member (plus earned interest) as a bill credit if the member has a history of no late payments during the most recent five years of service. The five year period is calculated from when the final installment of the deposit was made to MVEC.
If the deposit is still being held after five years, a member may request a deposit review once every 12 months thereafter.
When a member leaves MVEC’s service area, the deposit, plus earned interest, will be applied to the final bill. If a credit balance is remaining it will be refunded within 30 days.
Questions? For more information contact:
Collections Department
952.492.2313 or 800.282.6832
info@www.mvec.net
