Wednesday, August 23, 1978
University Daily Kansas
3
Students shelling out bigger utility deposits
By TAMMY TIERNEY
Staff Writer
Returning students moving into houses or apartments will find they are paying more
The Lawrence Water Department, the Kansas Public Service Co. and Southwestern Bell Telephone Co. are asking for information on how to respond to its requesting the same amount as last year.
Deposits for water and electrical services are $55. The minimum deposit for gas service is $20. For customers required to pay a phone deposit, the minimum is $10.
Deposits on utilities must be paid before a customer begins receiving service. The deposits are used as security against unpaid bills or other payments. Customers with good credit ratings after one
to three years, they serve as an incentive to
nav bills on time.
IN LAWRENCE, anyone planning to move into a house or an apartment can expect to pay as much as $160 or more in deposits. Although deposits take a chunk out of a student's budget, Kansas law requires that students be at an interest rate of at least 3 percent.
Ross Wilson, collection supervisor for the Lawrence Water department, said the department was asking a $35 deposit from its customers—$20 more than last year.
"The City Commission voted to raise the deposit from $15 to $35 last year because of the increased rate for water and customers' negligence in bill paying," he said. "The $15 rate just didn't cover the amount of unpaid bills."
Wilson said the deposits were retained for
three years before being returned to the customers with 5 percent interest. If a customer terminates service before three years, the department uses the deposit to pay the customer's final water bill and returns money that is left.
THE KANSAES Public Service Co. also is asking for higher deposits this year because
Bill Salome, vice president and general manager, said the company was charging customers $20, a $10 increase from last year.
"Gas bills have increased over the last four years, and it became necessary to increase the deposit from $10 to $20," he said.
Salame said the $20 rate applied only to customers living in apartments. The deposit was $250, which is about 4 percent of the
the amount of the highest bill from the previous year.
Salome said that once the deposit was paid, it was put into a fund where it draws 4 percent interest. Deposits are refunded to customers by check or credit at the end of one year. Should a customer terminate service before a year, the deposit is applied to the final bill. Remaining money is refunded.
UNDER A POLICY that went into effect May 1, deposits for Southwestern Bell's customers are limited to those who have bad credit ratings. However, new customers or credit rating may have to pay a deposit. Bell thinks their account has become a risk.
Polly Knight, manager of Southwestern Bell's Lawrence office, said the policy was that no one should be in the building.
charging all customers a deposit and then refounding it with interest at the end of one year.
Knight said customers who have a bad credit rating with the telephone company are at higher risk.
The deposit is based upon the customer's record of two months of long distance phone calls and service charges. She said the account cost $238 if the account was considered a risk.
Fred Bryan, division manager of the Kansas Power and Light Co., said KPI required a deposit from all customers unless a customer has received service during the previous year and was not late with payments.
Bryan said the deposit for most customers was $33. For those with all-electric homes, it is
The deposit figures, Bryan said, are based on the average of two months' bills. If, after one year, a customer has not been late with payments, the deposit plus 6 percent interest is refunded or credited toward current billing.
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