The Memphis Light, Gas and Water Division Board of Commissioners voted today to enhance the utility's credit policy. Changes to MLGW's deposit policy include an option of including the deposit amount on a customer's first bill. If required, a residential customer's initial security deposit will be $125. The deposit is based on credit assessment. Therefore, not all customers are required to pay a deposit. In addition, instead of a monetary deposit, MLGW will accept a Letter of Reference showing a good credit standing from another gas and/or electric utility. Deposits for customers with good payment histories will also be returned after just 24 months, 12 months sooner than the previous policy.

In an effort to help customers stay up to date with payments, MLGW will cap the amount of non-payment during the Annual Winter Moratorium (December 15 to January 14) at $1,000. Customers who will need to pay any balance greater than $1,000 or be subject to cut-off during the moratorium period.

In addition, MLGW is stepping up its efforts to identify and assist customers who are on life support. The utility will now recertify life support customers annually in order to ensure accurate data, and will share the date with the fire department to ensure that these customers are assisted during emergencies.

The utility is also making changes to its payment arrangement and deferred payment policies:

Payment Arrangements

• Customers requesting extensions must now pay 25% of the balance rather than 50%.
• Balance of the bill is extended up to eight days past the due date of disconnect notice.
• MLGW will now allow second payment arrangements, which were not previously allowed. For a second payment arrangement, a customer must pay 50% of the remaining balance and the balance is extended until two days before the due date on the next month's bill.
• Exceptions to the payment arrangement guidelines are now available to customers who have proof of a temporary financial hardship caused by situations such as loss of employment, hospitalization, loss of loved one, etc.
  
  Deferred Payment Plan
• Customers must now have a balance of $500 or greater to participate.
• Customers must pay 25% of the total amount past due plus current amount due and any returned items such as insufficient funds, credit card reversals, etc.
• Remaining balance can be paid over a five-month period, if needed.
• Customers will be asked to complete a Residential or General Power Service Agreement when requesting a Deferred Payment Plan and must have a service agreement on file before they receive a second deferred payment plan.
• Managers or executives must approve higher balances for deferred payment.
  
  The new policy will take affect January 1, 2008, with the exception of the Winter Moratorium, which would take affect December 15, 2008.