In the summer of 2007, Baldwin EMC announced a new deposit policy that effectively eliminated the minimum deposit for members with an acceptable credit score. At the same time, the new policy increased the deposit for new accounts without an acceptable credit score.
Now, as a further step toward protecting the best interests of our members, Baldwin EMC will begin to increase deposits on existing accounts that meet the following criteria:
Residential deposits will be increased to the greater of $350 or 2 ½ months averaged billing on accounts which:
• have been disconnected for non-payment in the last 12 months,
• have been on the collection list more than once during the past 12 months, or
• register more than one insufficient funds check during the past 12 months.
Non-residential deposits will be increased to three (3) months averaged billing on accounts which:
• have been disconnected for non-payment in the last 12 months,
• have been on the collection list more than once during the past 12 months, or
• register more than one insufficient funds check during the past 12 months.
Frequently Asked Questions about the Deposit Upgrade Policy
Why did Baldwin EMC create the deposit upgrade policy?
Why didn't I hear about the deposit upgrade policy sooner?
When will my deposit be increased?
How much will my new deposit be?
Will the increased deposit ever be returned to me?
Can I pay the increased deposit over a few months?
How can I avoid paying the increased deposit?
How often will you upgrade deposits?
What happens if I don't pay the new deposit?
Why did Baldwin EMC create the deposit upgrade policy?
Over the last few years, Baldwin EMC has seen a large increase in the amount of money that goes uncollected when an account is disconnected. The uncollected money is an expense to the cooperative and are a factor that could force Baldwin EMC to raise the rates on members who have maintained an acceptable payment history. By increasing deposits, there will be more money to be applied to the balance owed when a member's account is disconnected. This should reduce the amount of money that goes uncollected, and reduce the need to raise rates on all customers.
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Why didn't I hear about the deposit upgrade policy sooner?
Baldwin EMC initially notified members about the deposit upgrade policy in a June 2007 bill insert. All new members since June 2007 have also been subject to increased (or lowered) deposits. We also published an article in the January 2008 issue of Alabama Living.
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When will my deposit be increased?
Your deposit will not be reviewed for an increase unless you are cutoff for non-payment, appear on the cutoff list, or an insufficient-funds check after March 1, 2008. If your account is reviewed, your deposit will be increased if you have either two insufficient-funds checks in the past 12 months, shown up on the cutoff list twice in the last 12 months, or been disconnected for non-payment in the last 12 months.
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How much will my new deposit be?
For residential accounts, your deposit will be the greater of $350 or 2.5 months average billing. For non-residential accounts, your deposit will be 3 months average billing.
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Will the increased deposit ever be returned to me?
Yes. If you maintain a satisfactory credit history for 12 months, Baldwin EMC will return the part of your deposit that is more than $200. Also, your deposit will be immediately applied to the amount you owe when your account is disconnected.
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Can I pay the increased deposit over a few months?
Yes. We will be happy to make arrangements for you to pay the increased deposit in a reasonable amount of time.
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How can I avoid paying the increased deposit?
The best way to avoid paying the increased deposit is to make sure that your account is paid before the due dates that are on your bill. If you can't make the payment by the due date on your bill, call the office before the due date and make an arrangement. This will give you a few more days to pay your bill without hurting your credit history. Your deposit will not be upgraded if you make an arrangement before the due date on your bill and if you make the payment before the arrangement date.
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How often will you upgrade deposits?
Accounts will be reviewed for deposit upgrades every month. Once a deposit is increased, it will not be increased again for 12 months.
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What happens if I don't pay the new deposit?
An increase in your deposit is required in order to continue to receive electricity. Rather than cancelling service, we would like to make arrangements with you to pay the deposit.
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