Section 201: Application for Electric Service Requirements

I. Objective:

To develop a policy for applicants to satisfy certain requirements prior to obtaining electric service in consistency with the provisions of PEC’s Bylaws and Terms & Conditions of Service.

II. Policy Content:

Definitions, rules, and regulations setting forth the necessary requirements for furnishing electric service to members.

III. Provisions:

A. Definitions:

  1. Applicant: Any person, firm, corporation, church, or public body requesting electric service from PEC.
  2. Electricity: Electric power and energy produced, transmitted, distributed, or furnished by a utility.
  3. Legal Holiday(s): Day(s) declared to be legal holiday(s) by the Chief Executive of the State of Oklahoma or the federal government where financial institutions and/or other business entities are not open for business.
  4. Member: Any person, firm, corporation, church, or public body that has met the requirements for membership as provided for in PEC’s Bylaws and Terms & Conditions of Service and is being or will be supplied electric service by PEC.
  5. Member in Good Standing: One whose account has been active for at least twenty-four (24) months, all payments received prior to the 20th of each month, no returned checks and no collection trips.
  6. Meter: Any device(s) used to measure or register the use of electric power and energy.
  7. Normal Business Hours: The hours from 8:00 a.m. – 5:00 p.m., Monday through Friday.
  8. PEC: People’s Electric Cooperative.
  9. Premises: Any piece of land or real estate, building or other structure or portion thereof or any facility where electric service is furnished to a member.
  10. Residence: The dwelling unit located in the county in which the member is legally registered to vote.
  11. Special Contract: A written agreement between PEC and a member providing for the furnishing of electric service on terms different from those described in these policies.

B. General Requirements for Service

  1. All applicants are required to post a $5.00 membership with PEC.
  2. Application must be completed in PEC’s office, by Internet at, by telephone, or by United States mail.
  3. Service will be connected after Credit/Deposit Requirements are met (see Section C.). Contract(s) and other documents not executed immediately must be returned within ten (10) business days. If it is not returned to PEC with ten (10) business days, a 48 hour notice will be delivered and service will be subject to disconnection.
  4. A contract is required for each different service location. One contract may not be used to cover more than one meter at the same location to be used by the same member.
  5. Every application shall be made in the true name of the applicant desiring or using service. Positive identification is required by PEC when processing the application. In case of a violation of this provision, PEC may disconnect electric service.
  6. The contract for service is not transferable. Any new occupant of the premises must make a new and separate application for electric service in writing before service is initiated.
  7. Except for new construction, unexpired contracts, landlord’s leave-on agreements and temporary service, the standard contract term is twelve (12) months. Failure to fulfill the 12-month contract may result in a $50.00 Balance of Contract fee.
  8. Contracts longer than twelve (12) months, shall require the following:
    1. Signature of the landowner on the contract, which authorizes construction and acknowledges landowner is responsible for any unfulfilled contract term.
    2. Proof of land ownership by landowner.
    3. A current application for electric service or similar data requisition form completed by the landowner.
  9. In order to avoid liability for payment of subsequent service, it shall be the responsibility of the member to notify PEC of their intent to discontinue receiving electric service at such location. PEC shall discontinue service within five (5) working days following such a request by the member.

C. Credit/Deposit Requirements

Each applicant can establish credit with PEC by meeting one of the following criteria:

  1. New Residential Service Applicants
    1. PEC will obtain an application completed by the new member and may obtain a credit report to verify the payment and credit history of the applicant unless the applicant is currently a member in good standing. Applicants who provide sufficient credit information which is determined to be satisfactory and who own the property where electric service will be supplied will not be required to post a security deposit. If the credit report or other information provided is determined to be unsatisfactory, a security deposit will be required.
    2. Post a security deposit equal to two months average bill, or if historical data is not available, a minimum security deposit of $300.00. (These minimums do not apply to Commercial Members.)
      Security deposit for members applying for new construction should be calculated based upon twice the estimated monthly bill based upon member’s proposed load, or, if this data is unavailable or insufficient, a minimum-security deposit will be $300.00.
      Security deposits are subject to change once historical data is available or upon change of load or usage.
    3. A cosigner/guarantor may be used in lieu of a security deposit. Cosigners must currently be members of PEC for at least the previous two (2) years, own the property where their electric service is located (as recorded in the member’s file at time of application) and be a member in good standing.
    4. PEC will waive the deposit requirements for an applicant who is a current or previous member receiving the same type of service for twelve (12) consecutive months with service not being terminated for non-payment and no payments made after the 20th during the previous twelve (12) month period. The twelve-month period must have been within the previous two years.
    5. If eligible, enroll in PEC’s Prepaid Meter Program in accordance with PEC Terms & Conditions of Service 307.0.
  2. New Commercial/General Service Applicants
    Commercial or general service applicants may furnish PEC with an irrevocable letter of credit from a financial institution in an amount determined by the Director of Member Services, Sr. VP - Administrative Services, or the Exec. VP/CEO.
    Security deposits are subject to change once historical data is available or upon change of load or usage.
  3. Additional Deposit Required as Condition of Continued Service
    If a member fails to pay all or any part of his/her electric bill and service is discontinued in accordance with No. 401 of PEC’s Terms and Conditions of Service, a deposit equivalent to 1/6 of the annual bill or estimated annual bill (when 12 months is not available) may be required to be paid by the member as a condition of continued service. If the member has a deposit being held by PEC, the difference between the full amount required and the deposit already paid will be billed.
    The member will be notified in writing prior to receiving the monthly statement from PEC showing the deposit being billed.

D. Security and Refundable Construction Deposits

  1. PEC will pay interest on all deposits held longer than ninety (90) days, said interest to accrue from the date of posting. No interest shall accrue after discontinuance of service and deposit shall cease to draw interest on the date it is credited to the member’s account or returned.
  2. The rate of interest to accrue shall be as established by PEC’s Board of Trustees on an annual basis beginning on January 1 of each calendar year. The rate paid on all deposits shall be based upon the average paid on passbook savings accounts offered through Ada’s financial institutions.
  3. In the month of December of each year, PEC shall compute the amount of accrued interest and shall pay to the member the amount of accrued interest through a credit on such member’s then current bill.

E. Refund of Deposits

  1. PEC will automatically refund the deposit for residential service, with accrued interest, after twelve consecutive months’ satisfactory payment of undisputed charges. Payments of charges shall be deemed satisfactory if received in PEC’s office on or before 5:00 pm of the due date on the bill.
  2. The amount of the deposit and membership, with accrued interest, shall be applied to any unpaid charges at the time of a discontinuance of service. The balance will be returned to the member within thirty (30) days either in person or by mail to the member’s forwarding address or the last known address if such forwarding address is not supplied by the member at the time a disconnect is requested.
  3. Should the member move to another location where electric service is supplied by PEC, the deposit and membership may be transferred, provided the member’s account is current at the time the transfer is requested. To be considered current for purposes of transfer, the account must have no past due balances owed.
  4. The member may be required to pay an additional deposit upon a request to transfer service if the amount of deposit required is higher than for the previous location. These additional deposit requirements should be reviewed on an individual basis, relevant to the credit history of the member.
  5. Deposits may be transferred to another member upon written authorization of the member in whose name the deposit is posted, provided that all other credit requirements for both parties are met. Accrued interest and membership fees are not applicable in this situation.

F. Exceptions to Standard Contracts

  1. Landlord Leave-On Agreements
    PEC offers leave-on agreements to owners of rental properties that are frequently vacant between tenants. Landlords desiring this service must enter into a written agreement specifically for the purpose of clarifying the responsibilities of PEC and the landlord.
  2. Chickasaw Housing Authority
    The housing units of the Chickasaw Housing Authority (Authority) are automatically transferred into the Authority’s name when a tenant asks for a disconnect unless the Authority informs PEC otherwise. This is in accordance with a long-standing agreement with the Authority.
  3. Temporary Service
    Temporary Service shall be offered to landowners, realtors and others for the purpose of repairs, cleaning or showing the property. A temporary connect fee of $50.00 should be paid in advance of the connect or may be billed, at the discretion of the Director of Member Services. Temporary connect should be for not more than one month’s duration. Temporary service longer than one month shall be subject to the approval of Director of Member Services and may be subject to deposit requirements. Any usage will be billed at the general service rate and payable upon receipt of the bill. The contract for temporary service shall be the same as for regular service with notations to identify it as a temporary connect. A $50.00 disconnect fee will be added to the final bill, if applicable.

G. Any exception or deviation to this policy must be approved by the Exec. VP/CEO, Sr. VP - Administrative Services, or Director of Member Services.

IV. Responsibility:

It will be the responsibility of the Sr. VP - Administrative Services and Director of Member Services to properly administer these provisions.

Approved by the Board of Trustees

  • Effective Date: January 1, 1994
  • First Revision: January 28, 1994
  • Second Revision: September 25, 1998
  • Third Revision: April 26, 2002
  • Fourth Revision: April 24, 2009
  • Fifth Revision: June 30, 2009
  • Sixth Revision: March 29, 2013
  • Seventh Revision: February 28, 2014
  • Eighth Revision: November 24, 2014
  • Ninth Revision: April 27, 2017
  • Tenth Revision: May 27, 2021