As a non-profit electric cooperative, Kiamichi Electric Cooperative (KEC) is committed to providing the best service at the lowest possible costs to its members. With that purpose in mind, KEC has implemented the following procedures regarding payment security. These procedures will help cut costs to the membership due to losses from delinquent accounts and bad-debt write-offs. These procedures are in accordance with KEC Terms and Conditions of Service.
KEC, by allowing a member to use electricity during the month and billing him or her the following month, is simply extending credit to the members. Therefore, payment security is required on all accounts.
Payment Security for Existing Accounts
The following procedures will apply to existing members for payment security:
If existing member has more than two late payments in the previous twelve month period, a security deposit will be assessed and automatically applied to the members account in three equal monthly installments. This deposit will provide payment security to adequately protect all members of the co-op against the possibility of non-payment on the amount owed. This deposit amount is two times the highest monthly electric bill within the previous 12 months. The reason for this is that it usually takes 67 days to disconnect a member’s electric service for non-payment (30 days before it is billed and 37 days after the bill is mailed out). This is the industry standard that is followed by most electric utilities and sanctioned by the Oklahoma Corporation Commission and not unique to KEC.
A member may avoid or have this deposit removed by the following:
Switching to KEC’s pre-paid electric service.
Members who qualify may sign up for automatic bank draft.
The security deposit will be refunded when members payment history reflects no more than 2 late payments in the previous 12 months.
Payment Security for New Accounts
Payment security is required on all new accounts. KEC accepts the following as payment security:
A new member may allow KEC to perform a credit check to determine payment security
A member may provide KEC with a Letter of Credit from their current electric utility. The LOC must show no more than two payments late in the previous 12 month period.
A new member may choose KEC’s prepaid electric service.
A member may put on deposit an amount equal to 2 times the highest estimated monthly electric bill or $300 for new construction.