TO help ratepayers cope with the economic hardship caused by the Covid-19 pandemic, Rep. Corina L. Magofna is looking into the credits they have earned from their security deposit with the Commonwealth Utilities Corp.
Public Law 15-80 requires CUC to collect from each residential customer a one-month security deposit. These deposits “shall be placed in an interest-earning trust fund to be established by the executive director of the corporation. Such funds shall not be used for any other purpose. All residential security deposit refunds shall be paid within 30 days after disconnection of such utilities and with earned interest.”
The law also requires CUC to maintain an account indicating the customer name, date of security deposit and amount of deposit.
According to the law, effective Jan. 15 of each year, each account shall be credited an amount equal to the average “passbook” savings interest rate payable during the past year based on rates from at least three local FDIC-insured banks.
In her letter to CUC Executive Director Gary Camacho on Monday, Magofna said her constituents brought to her attention that some ratepayers have not been receiving credits for interests accrued to their security deposit accounts, both annually and/or upon disconnection of utilities.
Magofna wants to know if CUC is complying with the law whether in its entirety or partially. She also asked Camacho to “please advise as to what steps CUC is taking to ensure that ratepayers are credited with interest on their security deposits.”
She also noted that P.L. 15-80 or the CUC Security Deposit Fairness Act of 2007 states that “CUC is a government-owned utility and should be sensitive to the needs of the community. Residents are struggling with increasing rates, surcharge fees, and an overall cost of living increase while their incomes are declining. Therefore, it is the duty of CUC to hold these security deposits in a responsible and conscientious manner and to return such funds to residential customers with interest.”
Magofna is asking Camacho for a “most up-to-date report…for the past three fiscal years including the current fiscal year within ten days.”
Asked for comment, Camacho said, “We received the letter today [Monday] and we are looking into the matter.”
He said CUC’s customers and their interests are always the top priority for the utilities corporation.
“We will respond to her letter soon, which will also be provided publicly and to the media,” he added.
With Bryan Manabat
Corina Magofna
