TUA Board approves security deposit policy change
KYLE MURPHYStaff Writer
The Tullahoma Utilities Authority Board of Directors recently approved a change in policy to allow customers to have one late payment and still be eligible to get their deposit back.
The issue of Policy G-006 came up in its March meeting where a customer was given a chance to speak to them on the matter. TUA customer Stephanie Pecoraro told the board she missed to pay her bill before her family’s vacation, which she acknowledged that she did forget and paid it plus the late fees. She said because of this late payment she is out of receiving her deposit back due the policy of in order for customers to have their deposits applied to their account they have to make on time consecutive payments for 24-months. Pecoraro said while she was blessed to be okay without getting her deposit back, there were other customers who would need their deposit back if they inadvertently missed one payment.
“I think that the current policy is a bit unfair to new customers,” Pecoraro said. “I think as humans we all make mistakes, we all may have forgotten to pay them at one time or another, so I think that’s a policy that needs to be revisited.”
After some discussion, board member JT Northcutt, who is also the chair of the Policy Committee for TUA, said they would review and discuss the policy. Per Policy G-006, residential customers, with total billing of less than $1,500 per month for all accounts combined, may request their deposits be applied to their account after 24 months of continuous service if they meet requirements of 24 months of payments made not later than the due date at any service location, and not having a check or bank draft returned for non-payment during the same time period.
At the April meeting, the first reading to consider changes to Policy G-006 was brought to the board. TUA President Brian Skelton said he and the policy committee, Northcutt and board member/Mayor of Tullahoma Ray Knowis, met to discuss the policy and it came down to either not making a change to the policy or the alternative to allow customers to be late on a payment one time during the 24-month period to still be eligible to have receive their deposit back. Skelton said while he was personally in favor of keeping the policy as is, he thought the alternative was reasonable. Northcutt said he was in favor of the change was there was no risk in missing a payment one time, due to outside circumstances, during the 24-month period.
“This has been a customer focused organization and I think that’s reasonable,” Northcutt said.
Knowis said one of the reasons he was in favor of keeping the policy as written was because he viewed the policy as reasonable and the most lenient policy in comparison to the surrounding agencies in the area. The reason was the board received only one complaint and wasn’t in favor of changing policy being driven by one customer. Both board member Jimmy Blanks and Chairman Bob Lindeman said they were in favor of the policy change. Before voting on the first reading, Skelton said that they would need to get Tennessee Valley Authority’s (TVA) approval to make the change but it shouldn’t be an issue.
The board approved the first reading of the policy change 4 – 1, with Knowis voting against. In its May meeting, the board unanimously approved the second and final reading of the policy change to Policy G-006 to allow customers to be late one-time within a 24-month period and still be eligible to have their deposit applied to their account 5 – 0.
