N.Y. Public Service Law § 36: Residential service deposits

§ 36. Residential service deposits. 1. On and after January first,

nineteen hundred eighty-two, no utility corporation or municipality

shall require any new residential customer, other than a seasonal or

short term customer, to post a security deposit as a condition of

receiving utility service. In addition, no utility corporation or

municipality shall after the first day of September, nineteen hundred

eighty-two, or such earlier date as the commission may determine,

require a current residential customer to post a security deposit other

than such a customer who is delinquent according to standards set by the

commission. Deposits held on the first day of September, nineteen

hundred eighty-two, or such earlier date as the commission may

determine, shall be returned to the customer immediately, but not later

than the next bill for service; provided, however, that this provision

shall not apply to deposits of delinquent customers. No utility

corporation or municipality shall require any known recipient of public

assistance, supplemental security income benefits or additional state

payments to post a security deposit as a condition of receiving service.

2. Notwithstanding the provisions of subdivision one of this section,

the commission, after investigation and hearing, may authorize any

utility corporation or municipality to require and hold security

deposits from residential customers or applicants for service upon a

finding that the collection and maintenance of such deposits is cost

effective to the utility as a whole without regard to cash flow and the

availability of capital.

3. In any case where customer deposits are authorized by this section,

a utility corporation or municipality may require a customer or

applicant for service to deposit a reasonable sum of money according to

the estimated quantity of such services necessary to supply the customer

or applicant for service for two months, to secure payment for such

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

and facilities actually supplied. Every such utility corporation and

municipality shall allow to every such customer or applicant for service

interest on the sum deposited at a rate per annum to be prescribed from

time to time and at least annually by the commission in light of current

economic conditions and current charges paid for moneys borrowed by such

utility, taking into account the expenses incurred by such utility in

obtaining, handling, returning or crediting the sum deposited. Such

interest shall be paid upon the return of the deposit, provided however,

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

interest shall be credited to the customer or applicant for service on

the first billing for utility service rendered after the end of such

period. If a customer or applicant for service is not delinquent in the

payment of any billing during such one year period, the deposit shall be

refunded promptly at the end thereof, without prejudice to the utility's

or municipality's right to require a deposit thereafter in the event of

a delinquency. All utility corporations and municipalities shall exempt

from deposit requirements any customer or applicant for service who is

sixty-two years of age or older, unless the customer or applicant for

service is a bad credit risk according to standards set by the

commission.