Security deposits and credit policy

Information about requirements for electric service

Credit Decisions

Generally, PPL Electric Utilities (“PPL,” “We,” or “Us”) will provide the applicant with a decision on his or her application for electric service on the day we receive the application. However, we do have up to three business days to reach a credit decision. If we are unable to reach a credit decision within three business days, we will provide service to the location until we complete the application and credit review.

Victims of Domestic Violence with a valid Protection from Abuse (“PFA”) order

Special procedures and standards exist for victims of domestic violence with a protection from abuse order. Some of these special protections include:

  • We will not require a security deposit if the applicant has been a PPL customer within 24 months preceding the application and was the financially-responsible party, unless
    • Service to the applicant’s prior account had been terminated for nonpayment within the last year, OR
    • The applicant has an unpaid balance from the same location at which he or she is currently applying
  • We will not hold the applicant financially accountable for the debt of another, unless
    • The applicant is deemed legally obligated to pay by a court, district justice, or other administrative agency

Credit Policy for Applicants

When an individual applies for new electric service, we have the obligation to verify the applicant’s identification (“ID”), as well as the right to check his or her credit history and level of credit risk to determine whether a security deposit is necessary. We will also run a query to see if the applicant had any prior PPL accounts and, if so, determine if there is/are unpaid balance(s) associated with the account(s). In addition, we may require the applicant to provide the names and proof of identity of each adult occupant of the residence.

We may ask the applicant for his or her social security number (“SSN”) as a method to confirm identity, and to check the applicant’s credit history. However, we cannot require the applicant to provide the SSN.

If the applicant is required to complete any initial actions (provide ID or submit payment) before we activate an account in his or her name, we will send a detailed letter, which outlines the steps necessary to complete the application for electric service. We will send this within three business days of making the credit decision.

Request for Identification

For applicants who choose not to provide the SSN, or if a commercially-available credit reporting service recommends that we verify identification, we can request a valid, non-expired ID, which consists of one government-issued photo ID, such as a driver’s license or passport, or two alternative IDs, as long as one has a photo of the applicant.

Request for Payment of a Prior Balance

We may require that the applicant pay up to the full amount owed of any prior balances before initiating a new electric service account in his or her name.

In addition, we may hold an applicant financially accountable for a debt that accrued within the last four years, even if the individual was not the customer of record. We may establish that an applicant had resided at a property through the use of mortgage, deed, or lease information. In addition, we may use a commercially-available credit reporting service to confirm that an applicant is associated with a property.

Request for Security Deposit

We base our security deposit decisions solely only on the individual’s credit or payment record. We cannot require a security deposit on the basis of where a person lives, race, sex, age over 18 years of age, national origin, or marital status.

The amount of the security deposit is the equivalent of one-sixth of the estimated annual bill. The security deposit earns interest.

We will retain a security deposit until a timely payment history is established, which occurs when our records show that we have received 12 consecutive on-time and in-full payments.

If the account is closed while a security deposit is on hand, we will deduct any outstanding balance from the security deposit and return the difference, if applicable, within 60 days of the account’s end date.

We may require a security deposit from an applicant for any of the following reasons:

  • Insufficient credit score
    • Our credit scoring model specifically assesses risk of utility bill payment
  • Prior customer of PPL whose service was involuntarily terminated
    • Involuntary service termination includes:
      • Nonpayment of bills
      • Failure to complete payment of a deposit
      • Failure to provide access to our equipment
      • Equipment tampering
      • Unauthorized use
  • Prior customer of PPL who has an unpaid balance
    • Accounts where balances had accrued within the last four years

Security Deposit Alternatives

Proof of low-income

We will not require a security deposit if we receive confirmation of the applicant’s household income, proving that he or she is eligible for our customer assistance program (“CAP”).

Proof of low-income

Instead of paying a security deposit, an applicant can choose to provide a third-party guarantor. The guarantor must be able to establish credit by showing an account with a timely payment history that contains no prior service terminations or by passing the utility’s credit scoring assessment. The guarantor will sign a form making him or her financially responsible for any missed payments

Credit Policy for Existing Customers

We may require a security deposit from an existing customer for any of the following reasons:

  • Delinquent account*
    • This is defined as paying late on two consecutive bills or having paid late three or more times in the previous 12 months
    • We will provide written notice prior to requiring a security deposit for late payments
    • Security deposit will be billed in three installments
      • 50% due with the first bill rendered after security deposit is assessed
      • 25% due with the second bill rendered after security deposit is assessed
      • 25% due with the third bill rendered after security deposit is assessed
  • Condition to the reconnection of electric service*
    • If electric service is terminated for nonpayment of bills, we may require a security deposit as part of the reconnection payment
    • Security deposit will be collected in three installments
      • 50% due as a condition of, and prior to, service restoration
      • 25% due with the first bill rendered after service restoration
      • 25% due with the third bill rendered after service restoration
  • Failure to comply with the terms of a payment agreement*
    • If a customer fails to maintain a payment agreement, regardless of whether or not service has been terminated, we may require a security deposit
    • Security deposit will be billed in three installments
      • 50% due with the first bill rendered after security deposit is assessed
      • 25% due with the second bill rendered after security deposit is assessed
      • 25% due with the third bill rendered after security deposit is assessed
  • Bankruptcy filing
    • If a customer files for bankruptcy protection, we may require a security deposit until credit is re-established.
    • Security deposit will be billed in one installment

* We will not require a security deposit if we receive confirmation of the customer’s household income, proving that he or she is eligible for our customer assistance program, in these situations.