Security Deposit FAQs
Beginning in February 2013, we will require builders, property managers, landlords and realtors to settle unpaid prior obligations prior to establishing new electric service accounts. We’ll also review internal credit history for these customers when they request new electric service. If a customer has not established a satisfactory credit history — or has no credit history — a security deposit will be required before new service can be established.
Customers with satisfactory payment records will not be assessed security deposits.
Why is Duke Energy changing the process?
This process will help us meet regulatory requirements and improve consistency around the application, assessment and collection of security deposits on accounts that have an unsatisfactory credit history. Also, uncollectable bills and late payments cost us money – and these costs are ultimately passed on to all of our customers. This new process can help us avoid these unnecessary costs.
As a part of the new process, you’ll also receive improved documentation of transferred past due accounts.
When will the process change take effect?
Phase One was implemented on September 8, 2012. This phase automated the past due final bill transfer process by moving the account balances to new accounts based on criteria matches.
Phase Two will be implemented February 26, 2013. This phase requires builders, property managers, landlords and realtors to settle any unpaid past due final bills or charge-offs when establishing new electric service accounts. In addition, we will require a security deposits when a customer with an unsatisfactory credit history establishes new service.
How will property managers, landlords, builders and realtors be notified of the process change?
We are publishing notices in external communications, including email newsletters and websites for the Greater Charlotte Apartment Association (GCAA), Apartment Association of North Carolina (AANC), North Carolina Home Builders Association (NCHBA), and the South Carolina Home Builders Association (SCHBA).
How does the new transfer letter process work?
Previously, customers received a separate letter for each individual past due account that was transferred to their active service. In response to customer feedback, we now summarize past due final bills in weekly summary letters, each containing information on up to six past due accounts.
What is the process change?
Beginning in February 2013, Duke Energy will review credit history for all builders, property managers, landlords and realtors when they request new electric service. If a customer has not established a satisfactory credit history – or has no credit history – a security deposit will be required before new service can be established. In addition, all unpaid prior obligations on electric service accounts for builders, property managers, landlords and realtors must be settled as part of establishing new electric service accounts. Our evaluation of customer credit history is based on regulatory guidelines.
What is a satisfactory credit history?
Your credit history is satisfactory if your electric service has been active for more than 12 consecutive billing months, and during the past 12 months:
- Service has never been disconnected for nonpayment of the bill.
- There have been no more than two past due bills.
What is an unsatisfactory credit history?
Your credit history is considered unsatisfactory if you have unpaid bills, or if, during the past 12 months:
- There have been more than two past due bills.
- Service was disconnected for nonpayment of the bill.
Will I have to pay a security deposit?
If you have an unsatisfactory credit history, or if you have unpaid prior obligations, you'll have to pay a security deposit before we can process a new request to connect service. A security deposit is not required when satisfactory credit history has been established.
You can work towards establishing a satisfactory credit history now to avoid future security deposits.
What will be the amount of my security deposit?
Residential permanent service for builders, property managers, landlords and realtors: $50
Non-residential permanent service for builders, property managers, landlords and realtors:
- If contract demand is less than or equal to 15 kilowatts (kW): $100
- If contract demand is between 16 kW and 30 kW: $200
- If contract demand is greater than or equal to 31 kW: The security amount will be determined based on kilowatt load and assessment of the customer's payment history.
How will my property manager accounts on the Revert to Owner program (RTO) be affected?
As long as you maintain a satisfactory credit record, nothing will change. However, if you aren't able to maintain a satisfactory credit history, your accounts will be temporarily removed from the Revert to Owner Program. We'll mail a removal letter when an account is removed from the RTO program.
Once you establish a satisfactory credit history, your accounts can be added back to the program. It takes a minimum of one year to establish a satisfactory credit record.
How will this affect Property Manager Portal accounts?
When an account is removed from the Revert to Owner (RTO) program, it is no longer accessible on the Property Manager Portal. If your accounts are removed from the RTO program, you'll no longer receive proactive emails if a tenant has requested a disconnection or connection of service, and you'll need to contact us directly to:
- Confirm a tenant has applied and/or completed the request to put service in his name
- Disconnect service in the property manager's name
- Apply to connect service, if power is off
- Confirm a tenant has requested a disconnection of service
Your accounts can be added back to the RTO program once you've established a satisfactory credit history.
How can I satisfy my security requirement?
You can satisfy your security requirement with a:
- Cash deposit
- Irrevocable standby letter of credit
- Surety bond
Will my security deposit be refunded? When?
Yes, we'll refund your security deposit when you establish a satisfactory credit record.