Requirements
At the sole discretion of TCEC, Applicant or Member may be required to make a security deposit to guarantee payment for service. TCEC shall request and utilizes a third-party service to verify the social security number, federal tax identification number, or equivalent of an Applicant.
All applicants whose identity cannot be verified must bring proof of identity to the TCEC office during regular business hours before receiving service.
No security deposit shall be required by TCEC because of the race, creed, national origin, marital status, age, number of dependents, source of income, or geographic area of Residence of the Applicant/Member.
Non-transferrable
Security deposits cannot be transferred from one Member to another Member or Applicant.
Interest on Security Deposits
Security deposits shall bear interest at the highest tariff allowed by the Corporation Commission within the TCEC territory.
Return of Security Deposit
Security deposits shall be refunded as a credit on the account of the Member at the end of any twelve-month period in which the account was not delinquent.
Upon termination of all service, security deposits shall be applied to the account balance, and any remaining balance returned to the Member.
Amount of Security Deposit
Applicants for Residential/General Services
A security deposit shall be collected from Applicant for service based on the potential for delinquency.
TCEC shall use a third-party service to determine the level of delinquency that exists. This risk will be communicated with TCEC using a color system, as follows:
| Residential/General Service | |
|---|---|
| Green | $0 |
| Any other color | $300 |
At no time will the third-party service share Member’s credit score with TCEC.
Applicants for all other Services (i.e. Oil/Natural Gas, Irrigation, Large Power, Industrial, Wind)
TCEC shall use a third-party service to determine the level of delinquency that exists. Upon the determination of risk, TCEC may require a deposit prior to service as referenced above.
The amount of the deposit required is based on a determination of the average or estimated consumption expected over a 2 ½ month period. Once that estimate is made, Member can make an interest-bearing cash deposit in that amount with TCEC.
In the alternative, an alternate deposit can be made by furnishing an Irrevocable Letter of Credit in a form and from a financial institution approved by TCEC. It will be necessary that the Letter of Credit be valid for a period of 6 years.
The amount of the credit deposit will be reviewed after a three-year period and each year thereafter.
As a Member of a cooperative, the Member will be credited with capital credits which are a calculated portion of the profit from the sale of electricity. In the event the allocated capital credits are equal to or greater than the Letter of Credit, the Letter of Credit will be rescinded at TCEC’s discretion. At the point Member’s capital credits equal the required amount of the deposit, TCEC can elect to hold the Member’s earned capital credits in lieu of the deposit. After such a change, only the amount of capital credits exceeding the deposit amount will be eligible for retirements as annually determined by the Board of Trustees.
Members
A security deposit may be required from a Member as a condition of continued service when:
- The Member is adding an additional account;
- Service has been terminated for non-payment of charges;
- Two (2) payments out of the prior 12 billing periods have been dishonored;
- The Member is found to have tampered with meter or other equipment of TCEC; or
- Bankruptcy.
Waiver for Pay As You Go
TCEC may waive the requirements for a security deposit if an Applicant/Member desires to participate in the Pay As You Go service.