BHI purchases electricity on behalf of all its Customers and then recovers the cost, along with the cost of distribution, through Customer billings.
Depending on the billing options, the amount of exposure for BHI will vary and therefore the security deposit amount is adjusted to reflect the level of exposure.
The following policy applies for each billing option:
1. RETAILER-CONSOLIDATED BILLING
Under this option, BHI does not issue a bill to a Customer. The retailer is responsible for issuing the bill to the Customer and for Customer non-payment risk. BHI does not require a security deposit from the Customer.
If BHI is in possession of a Customer's deposit at the time of a switch to retailer-consolidated billing, the deposit shall be applied to the final bill and any excess deposit returned to the Customer.
2. DISTRIBUTOR-CONSOLIDATED BILLING
Under this option, BHI will issue a bill to the Customer. BHI is responsible for Customer non-payment risk. BHI may impose an amount of security deposit depending upon our assessment of the Customer's likely risk of non-payment as per the attached requirements.
3. STANDARD SUPPLY SERVICE
Under this option, BHI will continue to issue a bill to the Customer. BHI is responsible for Customer non-payment risk. BHI may impose an amount of security deposit depending upon our assessment of the Customer's likely risk of non-payment as per the attached requirements.
Security Deposit Requirements
These deposit requirements are related to BHI Customers with the exception of those Customers committed to retailer-consolidated billing.
Residential Customers
Amount of deposit required is based on:
a)
an estimated bill based on an average of twelve consecutive months in the past 24 month period
b)
this estimate will be multiplied by a billing factor of 2.5 for those Customers on a monthly billing arrangement and by a billing factor of 1.75 for those Customers billed bi-monthly.
c)
Where a Customer has had more than one disconnect notice in the past twelve month period, the amount of the deposit may be increased to reflect the highest actual or estimated monthly load, multiplied by the appropriate billing factor.
A deposit requirement will be waived subject to:
i)
establishment of good payment history with Burlington Hydro Inc. for a period of one year; or
ii)
proof of satisfactory payment history for one year with another electric or gas utility in Canada, where at least part of this payment history has been in the past 24 months; or
iii)
completion of a Burlington Hydro Inc. waiver form completed at our 1340 Brant Street offices authorizing an external credit check. The deposit will be waived subject to a credit check satisfactory to the utility. The $25.00 cost of such credit check, as revised from time to time, shall be billed to the Customer.
Unsatisfactory payment history is defined as more than one cheque returned for insufficient funds, or more than one pre-authorization payment returned for insufficient funds, or receipt of more than one disconnection notice, or when a disconnect / collection trip has occurred.
Acceptable forms of deposit are cash or cheque.
A Customer that has previously had a deposit returned or waived may be subject to providing a deposit should it be determined that they currently have unsatisfactory payment history.
A Customer may make arrangements to provide a security deposit in equal payments over 4 months. A Customer may pay the entire amount in a shorter period.
Burlington Hydro Inc. will review those accounts where deposits have been made at least once a year. Deposit requirements may be altered upon:
establishment of good payment history will result in deposit being returned in full; or
increase or decrease in usage / average bill may result in an increase or decrease of security deposit. Any changes up or down will be applied to the Customers next bill.
Deposits will be returned based on the Customer moving to a retailer consolidated billing arrangement or on termination of the account.
Interest on cash deposits will be credited to the Customer’s account annually, based on a calendar year, upon receipt of the total security deposit. The interest rate shall be equal to the Prime Business Rate as published on the Bank of Canada website, less 2 percent. This rate will be adjusted quarterly on March 31, June 30, September 30 and December 31.
General Service Customers
Amount of deposit required is based on:
a)
an estimated bill based on average of twelve consecutive months in the past 24 month period
b)
this estimate will be multiplied by a billing factor of 2.5
c)
where a Customer has had more than one disconnect notice in the past twelve month period, the amount of the deposit may be increased to reflect the highest actual or estimated monthly load, multiplied by the billing factor.
For new services where no usage history is available, deposits will be required based on a per AMP/Phase as follows:
* Single Phase |
* $5.00 per AMP |
* 3 Phase 120/208 Volt |
* $5.00 per AMP |
* 3 Phase 347/600 Volt |
* $15.00 per AMP |
A non-residential Customer in a rate class other than a<50kW demand rate class with a credit rating from a recognized credit rating agency, may have its security deposit reduced in accordance with the following table:
Credit Rating (Using Standard and Poor’s Rating Terminology) |
Allowable Reduction in Security Deposit |
AAA- and above or equivalent |
100% |
AA-, AA, AA+ or equivalent |
95% |
A-, from A, A+ to below AA or equivalent |
85% |
BBB- from BBB, BBB+ to below A or equivalent |
75% |
Below BBB- or equivalent |
0% |
A deposit requirement will be waived subject to:
i)
establishment of good payment history with Burlington Hydro Inc. for a period of five years in the case of a non-residential Customer in a <50W demand rate class, or for seven years in the case of a non-residential Customer in any other rate class; or
ii)
proof of satisfactory payment history for the time frame outlined above with another electric or gas utility in Canada, where at least part of this payment history has been in the past 24 months; or
iii)
in the case of Customer other than those in a >5000kW demand rate class, completion of a Burlington Hydro Inc. waiver form completed at our 1340 Brant Street offices authorizing an external credit check. The deposit will be waived subject to a credit check satisfactory to the utility. The cost of such credit check, as revised from time to time, shall be billed to the Customer.
Unsatisfactory payment history is defined as more than one cheque returned for insufficient funds, or more than one pre-authorization payment returned for insufficient funds, or receipt of more than one disconnection notice, or when a disconnect/collection trip has occurred.
Acceptable forms of deposit are cash, cheque or an automatically renewing, irrevocable letter of credit from a bank as defined in the Bank Act, 1991.
A Customer that has previously had a deposit returned or waived may be subject to providing a deposit should it be determined that they currently have unsatisfactory payment history.
A Customer may make arrangements to provide a security deposit in equal payments over 4 months. A Customer may pay the entire amount in a shorter period.
Burlington Hydro Inc. will review those accounts where deposits have been made at least once a year. Deposit requirements may be altered upon:
establishment of good payment history will result in deposit being returned in full; or
increase or decrease in usage / average bill may result in an increase or decrease of security deposit requirements. Any changes up or down will be applied to the Customers next bill.
Deposits will be returned based on the Customer moving to a retailer consolidated billing arrangement or on termination of the account.
In the case of a Customer in a >5000 kW demand rate class, Burlington Hydro Inc. may continue to hold 50% of the previously required deposit regardless of the establishment of satisfactory payment history.
Interest on cash deposits will be credited to the Customer’s account annually, based on a calendar year, upon receipt of the total security deposit. The interest rate shall be equal to the Prime Business Rate as published on the Bank of Canada website, less 2 percent. This rate will be adjusted quarterly on March 31, June 30, September 30 and December 31.
Account securities will not be applied to active account arrears and shall not constitute payment of an outstanding account, in whole or part. If BHI is in possession of a Customer deposit when the account is terminated, the deposit, or applicable portion thereof, shall be refunded to the Customer following the payment of their final bill. BHI will return any excess deposit amount to the Customer directly. Non-cash security will be applied after the final bill due date, if full payment is not received from the Customer.
The amount of account security that an Embedded Distributor will be required to provide BHI will be an amount to cover BHI’s exposure and based on billing frequency and payment cycle/period. The account security provided by the Embedded Distributor will be an irrevocable letter of credit, cash deposit, or a combination. BHI shall treat this deposit consistently with the security deposit requirements of all other classes of customers.
