Upon Rolla Municipal Utilities (RMU) receipt of a fully executed Service Connect Order and a current photo identification, RMU may require every person, persons, corporation, partnership, limited liability company or other business entity requesting electric and/or water service to make a deposit prior to providing service. This deposit is to be pledged to RMU by the person, persons, corporation, partnership, limited liability company or other business entity requesting service as security for payment of bills incurred by said depositor for services provided by RMU.
The depositor may make the required deposit in any one of the following ways:
1) Cash Deposit: A cash deposit paid directly to RMU. Deposit requirements of any amount may be satisfied by a cash deposit. Cash deposits will earn interest at a rate established by the Rolla Board of Public Works.
2) Insurance Bond: Insurance Bonds are an option to satisfy a deposit when the deposit requirement is greater than $2,000. This is an Insurance Bond purchased by the depositor from an insurance company that is duly authorized to transact business under the laws of the State of Missouri. The insurance company through this bond, will act as surety to guarantee payment of all bills incurred by the depositor for services provided by RMU. This Surety Bond must contain a clause stipulating that RMU must by notified in writing at least sixty days in advance of cancellation or decrease in the amount of this bond. An example will be provided for your insurance company. RMU reserves the right to reject any insurance bond from any insurance company.
3) Irrevocable Letter of Credit: (ILOC) Irrevocable Letter’s of Credit are an option to satisfy a deposit when the deposit requirement is greater than $2,000. An ILOC must be from a federally insured bank, and must authorize RMU to make demands for payment by sight draft for a period of five years from the date of issuance or upon the termination of service where any and all obligations of the Customer to RMU have been satisfied in full, whichever shall first occur. This ILOC must also contain a clause stipulating that RMU must be notified in writing at least sixty days in advance of cancellation or decrease in the amount of this ILOC. If the use of an ILOC is otherwise acceptable to RMU, then use of the ILOC form provided by RMU, by reference, shall be deemed acceptable. RMU reserves the right to reject any ILOC from any bank.
Upon request, deposit schedules are available at the RMU Business Office.
Electric Deposit Rates Water Deposit Rates
The RMU Business office may reevaluate any or all Customer deposit amounts at any time. RMU reserves the right to require a deposit where none was previously required, to require an additional deposit subsequent to the initial deposit, or to require another deposit or the re-payment of a deposit following any full or partial refund of a prior deposit, where deemed necessary to secure future payment of bills incurred by a Customer. This reservation of rights shall be exercised in a manner reasonably related to the need to secure payment for utility services rendered based upon all amounts estimated, or if the Customer has no deposit with RMU and becomes delinquent in payment of his or her monthly utility bills. Customers may also be subject to a new deposit amount when they change utility service location(s) or if the Customer seeks relief under the Bankruptcy Code, provided that any such action by RMU in the event of a Customer’s Bankruptcy shall be taken in accordance with any then applicable provision of the Bankruptcy Code.
All Customer deposits will become subject to refund after five years from the date the deposit is paid, if the depositor established a good record of payment with RMU by paying all bills on or before the: a) thirty-fourth day, if Residential; b) twenty-fourth day, if Non-Residential, after the billing date on the bills. RMU will make Cash Deposit refunds by applying the deposit to the Customer’s utility bill during the month in which the deposit becomes five years old unless alternate arrangements have been made with the Customer.
All Customer Cash Deposits remaining at the time the Customer has a final bill will be refunded by applying the deposit to that Customer’s final utility bill unless alternate arrangements have been made with the Customer. Any deposit held by RMU may be applied to the total amount owed by the Customer.
Residential Customer
A Residential Customer is any Customer with an actual monthly demand of less than 100kW, that purchases the majority of the electricity and/or water for his or her personal domestic use. Domestic use shall mean for noncommercial, nonbusiness, or nonindustrial purposes as specified in Section 144.020(24) RSMo. This classification is intended to satisfy the provisions of that law by establishing a classification system permitting sales of metered electricity and water to be classified as “Residential” and exempt from the collection of states sales tax by RMU.
The amount of the deposit(s) shall be established by RMU.
Non-Residential Customer
A Non-Residential Customer is any Customer that purchases the majority of its electricity and/or water for any non-domestic purpose, such as for commercial business or industrial purposes.
If the Customer is a Limited Liability Company (LLC), a copy of its Operating Agreement is required before service can be granted. If the LLC is manager-managed, only the manager may sign RMU’s Customer Connect Order. If the LLC is member-managed, all of the members identified in the Operating Agreement must sign the RMU Customer Connect Order. RMU reserves the right to require all of the individual members (and their spouses, if any) to execute a guarantee of the LLC’s obligation. Failure to execute a guarantee of the LLC’s obligation will result in RMU holding the service deposit beyond five years, until services are terminated and settled. In all cases all signing parties must provide current photo identification.
The amount of the deposit(s) shall be established by RMU. Non-Residential deposits are established based on RMU’s maximum exposure for two consecutive months.
All Non-Residential Customers may pay their Cash Deposit with cash, a check from their personal or business bank account, Credit Card (Visa,MasterCard, or Discover), or Debit Card. Credit and Debit card transactions by a Customer shall be limited to two $2,000 transactions per month.