Deposit Policy

ORUD IS REQUIRED BY FEDERAL LAW (FACT ACT-RED FLAG POLICY) TO VERIFY YOUR INDENTITY BY USING THE FOLLOWING FEDERAL GUIDELINES PRIOR TO HAVING SERVICE CONNECTED.

• Government issued photo ID and one of the following:
  • Original or certified copy of birth certificate
  • Social Security card
  • Passport
  • Credit card
  • For Tenants – Fully executed lease or letter of authorization
  • For Homeowners – Proof of ownership (ex. Bill of Sale, Deed)
  • For Agents – Listing or management agreement

It is the policy of ORUD Natural Gas to require a cash security deposit of up to $200 from new and prior residential customers. However, if a customer voluntarily authorizes ORUD to obtain a consumer credit report, the deposit may be reduced or waived based on a satisfactory credit report.

All commercial and industrial customers are required to post a security deposit to receive service. Those deposits are based on an estimate of two months maximum usage using historical sales volume at the service location and/or load sheet data obtained to size the service installation. Cash, checks, credit cards, surety bonds, and irrevocable bank letters of credit are acceptable security deposit methods for commercial and industrial customers.

If a customer uses cash to meet their security deposit requirement, deposits shall bear interest at a rate set by the Board of Commissioners, and such interest shall be payable periodically. After two years of satisfactory payment history, residential customers’ deposits will be credited to their bill. Commercial and industrial deposits are refunded upon discontinuance of service.

ORUD may apply a deposit against unpaid bills for service, and in such cases, the customer will be required to reestablish a deposit in an amount satisfactory to ORUD. Upon discontinuance of service, ORUD shall have a reasonable time in which to ascertain that the obligations of the customer have been fully performed before being required to return a deposit. Upon final discontinuance of use and settlement of all bills by the customer, any deposit with accrued interest not previously refunded, will be returned to the customer. Customer credit balances under $1.00 will not be refunded. With regard to unclaimed customer credit balances, ORUD follows Tennessee Unclaimed Property laws.

At the discretion of ORUD, the deposit requirement is waived or reduced for service to: (a) organizations exempt from federal income taxation tax, provided they have a valid tax exemption certificate on file with ORUD, (b) federal, state, and local governments, (c) government facilities where a third party company requests service acting as an agent of the government, (d) a rental unit subject to a contract with a landlord providing that gas service shall continue during periods when the unit is not occupied by a tenant and that the landlord shall be responsible for the payment of bills for gas service until an account is established in the name of a new tenant (a deposit shall apply to the new tenant), and the landlord maintains its account in good standing, (e) a builder, contractor, or developer on a temporary basis prior to occupancy of the premises, and (f) commercial and industrial customers on a case-by-case basis for the purpose of fostering economic development.

At the discretion of ORUD management, should any customer’s natural gas service be discontinued due to customer-initiated actions such as nonpayment or damage to ORUD equipment, that customer may be required to post a new security deposit or increase a current security deposit of up to the maximum as outlined above.

No assignment of any deposit shall be valid without the written consent of the District.