RESOLUTION NO. RS2010-1499

A resolution requesting the Davidson County Delegation to the Tennessee General Assembly and the Tennessee Regulatory Authority to enact and implement the necessary regulations to prohibit utilities from basing the amount of a customer’s security deposit on a previous customer’s usage.

WHEREAS, the Tennessee Regulatory Authority has the responsibility for setting the rates and service standards of privately owned telephone, gas, electric and water utilities; and

WHEREAS, Piedmont Natural Gas Company is a private natural gas utility operating within the area of the Metropolitan Government of Nashville and Davidson County that falls under the regulation of the Tennessee Regulatory Authority; and

WHEREAS, Section 1220-4-5-.14 of the Tennessee Regulatory Authority Regulations for Gas Companies provides that each utility may require from any customer or prospective customer a deposit intended to guarantee payment of bills for service; and

WHEREAS, Section 1220-4-5-.14 further provides that the amount of such deposit cannot exceed the maximum estimated charge for service for two consecutive billing periods or ninety (90) days, whichever is less; and

WHEREAS, the amount of the deposit charged by Piedmont Natural Gas Company for a new customer moving in to a rental unit is based on the previous two highest months of usage; and

WHEREAS, if the previous tenant used excessive amounts of natural gas, the burden falls upon the subsequent tenant to pay the high deposit amount, which is often cost prohibitive; and

WHEREAS, it is fitting and proper that the Tennessee Regulatory Authority amend its regulations to prohibit utilities from basing the amount of the deposit on a previous customer’s usage.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1. That the Metropolitan County Council hereby goes on record as requesting the Tennessee Regulatory Authority to the Davidson County Delegation to the Tennessee General Assembly and the Tennessee Regulatory Authority to enact and implement the necessary regulations to prohibit utilities from basing the amount of a customer’s security deposit on a previous customer’s usage.

Section 2. The Metropolitan Clerk is directed to send a copy of this Resolution to each member of the Davidson County Delegation to the Tennessee General Assembly and to the chairperson of the Tennessee Regulatory Authority.

Section 3. This Resolution shall take effect from and after its adoption, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Eric Crafton

LEGISLATIVE HISTORY
Referred:	Rules & Confirmations Committee
Introduced:	December 21, 2010
Adopted:	December 21, 2010
Approved:	December 22, 2010
By: