§ 15-9-5. DEPOSIT OR BOND FOR INFRASTRUCTURE IMPROVEMENTS.

(A)

The director of the Electric Utility shall assess a deposit or impose a bond requirement against a customer that requests electric utility service with an expected peak demand load of four megawatts or greater. The director of the Electric Utility and the customer shall agree on an estimated peak demand load under this section. The City is not liable for interest on any amount assessed or released under this section.

(B)

The director of the Electric Utility shall require a customer to provide a deposit or bond approved by the director in an amount equal to 50 percent of the costs, including labor and overhead, associated with estimated electric utility infrastructure improvements necessary to meet the customer's expected peak demand load. The customer shall provide the deposit or bond in addition to a contribution in aid of construction or other payment or fee required by a service contract.

(C)

The director of the Electric Utility shall release the customer's deposit or bond in full if, after 18 months from initiation of service, the customer's actual peak demand load has reached 90 percent or more of the estimated peak demand load over three consecutive billing cycles.

(D)

The director of the Electric Utility shall average the customer's actual peak demand load for the three highest consecutive billing cycles to determine the amount of the deposit or bond to be released to the customer if, after 18 months from initiation of service, the customer's actual peak demand load is at least 50 percent, but less than 90 percent of the estimated peak demand load over three consecutive billing cycles. Under this subsection, the director of the Electric Utility shall release the customer's deposit or bond at a rate of 2.5 percent for each full percentage point the average actual peak demand load exceeds 50 percent of the estimated peak demand load. The customer shall forfeit the remainder of the deposit or bond to the Electric Utility.

(E)

The director of the Electric Utility shall retain the customer's deposit in full or shall collect against the full amount of the customer's bond if, after 18 months from initiation of service, the customer's actual peak demand load is less than 50 percent of the estimated peak demand load over three consecutive billing cycles.

(F)

The director of the Electric Utility and the customer may agree to a shorter or longer period of time under Subsections (C), (D) and (E).

(G)

Under Subsections (D) and (E), the director of the Electric Utility may not retain or collect more than the actual cost of labor, overhead, and materials associated with infrastructure improvements made to meet a customer's expected peak demand load.

Source: 2003 Code Section 15-9-232; 1992 Code Section 18-4-321; Ord. 040805-02.