N.Y. Public Service Law § 117: Consumer deposits

§ 117. Consumer deposits. Except as the right to require deposits is

further limited by section thirty-six of this chapter, a gas

corporation, an electric corporation, a gas and electric corporation, a

water corporation, a steam corporation, a telegraph corporation, a

telephone corporation or a municipality rendering equivalent utility

services may, unless prohibited by the commission, require any person to

whom such corporation or municipality shall supply gas, electric, water,

steam, telegraph or telephone services to deposit a reasonable sum of

money according to the estimated quantity of such services necessary to

supply the same for two calendar months, to secure payment for such

services actually rendered, or for the rental of fixtures, instruments

and facilities actually supplied, but every such corporation and

municipality shall allow to every such depositor interest at a rate per

annum to be prescribed from time to time, at least annually, by the

commission in the light of current economic conditions and current

charges paid for other moneys borrowed by such corporation or

municipality, and the expenses incurred by such corporation or

municipality in obtaining, handling and returning or crediting the sum

deposited, on the sum or sums so deposited, payable upon the return of

the deposit or at earlier intervals as hereinafter prescribed. Whenever

such deposit has been held for a period of one year, the interest

accrued on such deposit shall be credited to the depositor on the first

billing for utility service rendered after the next succeeding first day

of October. If the depositor was not delinquent in the payment of any

bill in such one year period, the deposit shall be refunded promptly at

the end thereof, but without prejudice to the right to require a deposit

thereafter in the event of a delinquency or where it can be shown that

the financial condition of a business customer is such that it is likely

that the customer may default in the future, and to retain such deposit

for a prudent period; except that subject to such regulations as the

commission may establish, if the deposit is for utility service rendered

to a business, the deposit may be retained for a prudent period beyond

such a one year period. No provider of utility services shall require of

its customer within its service area a new security deposit where such

customer was not required to post a security deposit or had a security

deposit returned pursuant to this section and such customer establishes

a new residence and continues service with the same provider of utility

services.