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  1. #1
    Join Date
    Sep 2016
    Posts
    13,916

    Default Demand for an Excessive Deposit by an Electrical Utility

    A power company serving a commercial property has informed a new tenant that, as the prior tenant defaulted on its electrical bill, they won't turn on the power without a large deposit, more than $2,000. Is it legal for a utility company to impose a very large deposit on a customer that has always paid its bills, because a completely unrelated company that happened to once rent the same space didn't pay its bill?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Demand for an Excessive Deposit by an Electrical Utility

    Odds are the deposit is legal. The fastest way for the tenant to resolve the issue is likely to pay the deposit, and then to file an appeal with the electrical company or with the state regulatory agency that regulates the rates charged by electrical utility companies.

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