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CITY OF ANAHEIM WATER RATES, RULES Utilities Financial Services AND REGULATIONS 201 S. Anaheim Blvd. Page No. 3.6.1 Anaheim, CA 92805 RULE NO. 6 ESTABLISHMENT AND REESTABLISHMENT OF CREDIT ISSUED BY: Effective: 08-01-13 by Resolution No.: 2013-115 Dated: 07-23-13 Marcie L. Edwards Superseding Resolution No.: 2001R-192 Dated: 07-10-01 General Manager A. ESTABLISHMENT OF CREDITWORTHINESS 1. Creditworthiness and Service Deposit. Prior to receiving Service from the Utility, each Applicant for Service must be creditworthy or furnish a deposit to secure payment. An Applicant is creditworthy if, within the previous twelve (12) months, Applicant has maintained a record of paying utility bills before becoming past due in the same Applicant’s name for a minimum of twelve (12) consecutive months. In the alternative, an Applicant who has been a Customer of the Utility may establish creditworthiness if Applicant establishes all of the following: Applicant was a Customer for a similar type of Service within the past two years; The billing amount of the previous Service equals 50% or more of the estimated billing amount for the new Service; The previous Service was not disconnected due to non-payment or Diversion (as defined below); The previous Service had not been disconnected by the Utility during the last twelve (12) months for nonpayment; or the previous Service had not been disconnected by the Utility during the last two consecutive annual billing periods (as defined in Rule No. 7) for nonpayment; and Any related closing bill was paid within 30 days of the date of issuance. If Applicant fails to establish creditworthiness in the manner set forth above, Applicant shall provide the Utility with a Service deposit to secure payment for Service. As set forth in Rule No. 7-F, Customers requiring assistance with the payment of a Service deposit may request an extended payment plan to make the required payments to establish or reestablish Service. 2. Diversion. If Applicant has committed any form of Diversion (as defined below), the Utility may require a deposit, and this deposit shall be referred to herein as the Diversion Deposit. For this rule and Rule No. 7, Diversion shall mean any activity described in California Penal Code section 498(b), as may be amended from time to time. This security shall be in the form of cash, certificate of deposit, or irrevocable letter of credit, and the amount of this security shall equal that amount prescribed in Rule No. 7-B. The Diversion Deposit is a deposit, which is separate from the Service deposit. B. REESTABLISHMENT OF CREDIT - ALL CLASSES OF SERVICE 1. An Applicant for residential Service will not be denied service for failure to pay outstanding amounts for other classes of Service. 2. A Customer who fails to pay bills before they become past due as prescribed in Rule No. 11-B, and who further fails to pay such bills by the date indicated on a termination of service notice for nonpayment of bills, may be required to pay all delinquent amounts and reestablish credit by depositing the amount prescribed in Rule No. 7-B. The foregoing will apply regardless of whether or not Service has been terminated for such non-payment. 3. A Customer may be required to provide security in case the conditions of service or basis on which credit was originally established have, in the opinion of the Utility, materially changed. A material change may include a Customer having more than one occurrence of late payments, returned items (including, but not limited to, bad checks and reversed credit card charges, or Diversion.