Cookeville, TN asked in Business Law, Civil Litigation and Energy, Oil and Gas for Tennessee

Q: power co wants to charge $2200 to turn on power for a new business that is in the same place as one that didn't pay bils

The last business didn't pay on time and got shut off alot. Now a new business wants to open in the same building and the power co wants an upfront fee of $2200 due to the payment history of the old tenant. Is this legal?

1 Lawyer Answer
Leonard Robert Grefseng
Leonard Robert Grefseng
  • Columbia, TN
  • Licensed in Tennessee

A: Most likely, yes. Most local utility companies are regulated- their rates are limited by a separate agency to prevent "gouging" the consumer. But at the same time, they are allowed to demand deposits to secure payment. In other words, they can't make huge profits, but they can't lose money either. If you want the service, you will probably have to pay the deposit to get it, but then appeal the amount of the deposit to the board/agency that sets the rates.

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