A security deposit is required for new, non-residential accounts. The deposit may be waived if the customer has another account with CL&P under the identical name and business type, and if the account has good credit. The deposit may be paid in check, bond, or irrevocable letter of credit (letter from a bank that allows the company to secure a deposit amount if the account falls behind in payments).
The deposit shall be equal to a 45-day consecutive period of maximum usage. The calculation can be based upon actual or estimated consumption during the prior twelve months at the location for which the service is being requested. If there is no prior usage history, then the company will work with the customer to determine an appropriate deposit amount. The security deposit will be refunded, plus interest, if all bills are paid on time for 12 months.
Connecticut sales tax legislation requires CL&P to apply a 6 percent sales tax to all electric service bills that do not qualify for any of the exemptions listed below. For customers who are not exempt, the tax will apply only to the monthly charges in excess of $150.00 for any service location.
Sales tax Exemptions:
If electricity is used predominantly for residential purposes.
If you claim an exemption as a nonprofit charitable hospital or as an organization established exclusively for charitable, religious, scientific, educational, literary, historical, or cemetery purposes.
If you claim a government entity exemption under Section 12-412(1).
If you claim an exemption for agricultural production, fabrication of a finished product, or manufacturing and that not less than 75 percent of the electricity is consumed for such purposes.