A security deposit may be required if the following conditions exist:
- The 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.
- The member has interfered with or diverted MVEC electrical service in an unauthorized manner.
- The member receives a disconnection notice. (Note: deposit requirements are location specific). The member has two (2) returned bank items within the most recent previous twelve (12) month.
A deposit can be avoided if the member:
Signs up for Automatic Bill Pay (funds automatically withdrawn from the member’s checking account or savings account each month) or can use a Capital Credit Assignment.
Capital Credit Assignment
In lieu of a deposit, for any account with billings greater than $265/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 payments. 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) does not equal two months’ worth of the deposit of the estimated monthly bill, the member will also be required to pay the difference. For any account that has a billing less than $265/month, no Capital Credit agreement will be administered. The member is required to pay the deposit and sign up for Automatic Bill Pay.
If the member requests removal from Automatic Bill Pay 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 allowed to sign up for Automatic Bill Pay to avoid an increase in their deposit. NOTE: a deposit will be applied to any account that has two returned payments.
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:
Member Account Support
952.492.2313 or 800.282.6832