Deposit Policies

A $265 deposit is required for all new or transferred residential services. This may be waived or adjusted based on an Online Utility Exchange verification.

Ways to Avoid the Deposit:

• Prepaid Billing – Enroll in prepaid billing
• Automatic Bill Pay – Set up recurring payments by credit card or bank account.
• Letter of Reference – Provide a good credit letter from a previous electric utility.

Existing/Previous Members:

• If you’ve been an MVEC member within the past 12 months, no deposit is required unless you have a poor payment history (late payments, returned checks, disconnection for non-pay, collections, etc.).
• If you already have a deposit, it will transfer to your new account. The original “paid date” carries over.

Delinquent Accounts:

• Members with 3+ delinquent notices or 2+ returned bank items in 12 months may be billed a deposit equal to 2x their average monthly bill.
• If your deposit is below MVEC’s Schedule of Charges (by $100 or more) and you’ve had a disconnect visit in the past 12 months, you’ll be billed the difference.
• You can avoid additional deposits by enrolling in one of the payment programs listed above.

Deposit Return:

When service ends, the deposit (plus interest) is applied to the final bill. Any remaining credit is refunded within 30 days or applied to another active MVEC account.

Deposits (plus interest) are credited back after 12 months of on-time payments and no returned bank items. Reviews may be requested once every 12 months if the deposit is still being held.

A security deposit may be required under certain conditions to protect all members from unpaid bills.

When a Deposit May Be Required

A deposit may be required if:

• You’ve received a disconnection notice (requirements vary by location).
• You’ve had two or more returned payments within the past 12 months.
• Your business or location has a history of unpaid balances — two or more bad-debt losses within three years.
  • In this case, a deposit will be required even if your credit score is good, and it will remain in place indefinitely.
• You’ve tampered with or diverted MVEC electric service in any way.

Ways to Avoid a Deposit

You can avoid paying a deposit if you:

• Enroll in Automatic Bill Pay (payments are automatically withdrawn from your bank account), or
• Use a Capital Credit Assignment.

Capital Credit Security Agreement

For accounts with average monthly bills over $265:

• A Capital Credit Security Agreement is required instead of a deposit.
• This agreement is filed with the State of Minnesota and lasts five years.
• If all payments are made on time during the last 12 months, the agreement expires after five years.
• If payments are late during that period, the agreement is renewed for another five years.
• If your available Capital Credits (less generation and transmission margins) are less than two months’ worth of your average bill, you’ll need to pay the difference as a deposit.

For accounts with average monthly bills under $265:

• A deposit is required, and
• You must sign up for Automatic Bill Pay.

Changes or Increases

• If you cancel Automatic Bill Pay within one year of signing up, a new deposit will be charged.
• If your existing deposit is $100 or more below MVEC’s current required amount and you’ve had at least one site visit in the past year, you’ll be billed for the difference.
• You can avoid a deposit increase by enrolling in Automatic Bill Pay.
• Any account with two returned payments will automatically be charged a deposit.

Deposit Return

• Any remaining credit will be refunded within 30 days.
• Deposits (plus interest) are returned as a bill credit after five years of on-time payments.
• After five years, if the deposit is still held, you may request a review once per year.
• When your MVEC service ends, the deposit (plus interest) is applied to your final bill.