How can AEP charge for a deposit?
How come AEP can charge so much for a deposit? I have $337 already paid and for being late (not enough to shut off). I now have to pay an extra $100, can they do this?
We spoke with Vikki Michalski, Corporate Communications for AEP Ohio, she says security deposits are strictly regulated by the Ohio Administrative Code. AEP Ohio can require a deposit fee within 30 days of the initiation of service and at a time when a customer is delinquent on a bill. Total deposit requests cannot exceed one-twelfth of the annual consumption plus 30 percent.
In a 12-month period, customers who are delinquent two or more times in a 12-month period may be required to pay a deposit and or an additional deposit amount. Deposits are returned to customers—through credits to their accounts—when they are not late more than twice in a 12-month period. Interest is paid on the deposit after six months at an annual rate of 5 percent per year.
There also are non-cash options available for providing security deposits. AEP Ohio’s customer handbook, which is given to new customers, states that in lieu of a cash deposit, residential customers may furnish a guarantor who already has established credit for a similar account with AEP Ohio.
We continually encourage customers to contact us if they are having difficulties or expect to have difficulties paying their bill. We have payment plan options and agreements, and assistance is available to customers who qualify. You may read about these options under the Customer Service “Pay Your Bill” section of aepohio.com.
For more information visit, http://www.aep.com/http://www.wcmhblogs.com/images/uploads/util_logo_oh.gif