Who is required to pay a utility bill security deposit?
New City of Red Deer utility account customers and existing customers who move within the city may be required to pay a security deposit, depending on their payment history with The City. This security deposit is $325.
The security deposit applies to renters or property owners where there is a history of poor payment, as per Utility Bylaw 3570/2016 - Schedule B - F Effective March 1, 2017 (pdf).
Why is this security deposit applied?
For customers who have not yet established a good payment history with The City, or have poor payment history, the security deposit helps limit the financial risk to The City by ensuring funds are available to cover unpaid bills.
Is the security deposit ever returned to the customer?
Yes, customers who have had an account in good standing with The City for at least 12 months can request to have their security deposit returned, in the form of a credit on their utility bill.
If a customer closes an account, they will receive a refund of any amount owing after payment of the final bill.
The security deposit is not revenue for The City, and remains in an account until such time it is credited back to the customer, or used to pay outstanding bills.