Bay Town approves new utility deposits for large companies and industrial clients

BAY Town, MI – The Bay City Commission unanimously passed two ordinance amendments in the course of a virtual meeting on Monday, Feb. 1 to enable the town to need substantial deposits for specific industrial utility clients.

The initial modification modifies the Normal Guidelines and Restrictions Governing Electric Assistance for 2021 to enable the city the alternative to call for significant commercial or industrial buyers to supply a deposit of no much more than a few times an estimated month-to-month bill. The 2nd modification clarifies a deposit requirement for substantial prospects who could pose a revenue possibility to the Metropolis by acquiring an unsatisfactory, incomplete or non-existent credit history background.

The new modification to the common principles reads, “The utility might need a income deposit to guarantee payment of not more than 3 instances an approximated normal regular billing, other sort of account security satisfactory by the utility and/or concur to accelerated payment phrases as a affliction of provider.”

As of 2017, the town essential a flat $500 deposit for electric powered only or water and sewer only utility expert services for all commercial prospects, with a merged deposit for electrical, water and sewer of $1000.

The Bay Town Commission very first opted to receive the two ordinance amendments all through the Jan. 19 virtual assembly before they equally were being unanimously authorized on Monday. Jay Anderson, director of Light and Electric power, informed the commission in the course of the January meeting that the ordinance amendments offer with industrial utility prospects who are predicted to incur regular monthly payments past a threshold of $50,000.

The Bay Town Times earlier documented that Anderson reported all through that meeting that the city at the moment has 2 professional utility prospects that are over the $50,000 mark for their monthly utility invoice but that there is a probability for anywhere from 5 to 10 or additional huge business consumers coming to town in the future several years.

Anderson referenced a big incoming salt brining operation by Wilkinson Minerals and an inflow of cannabis growing facilities as some of the larger utility shoppers set to occur into town. On the other hand, he reported in the course of the Jan. 19 conference that the alterations are not targeting any precise marketplace and that they apply to industrial consumers in all industries.

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