Cash grab by Newport Utility in eastern TN

[Collin Hays]

When you have your own business, such as a vacation rental, you always have to be on the lookout for entities trying to grab cash from you.  A few weeks ago, Newport Utility, my electric provider for 4 properties, demanded that I increase my deposits by $100 per property, due to "increased usage." The first property I bought in 2005, never late on a single payment.  All of my properties are on auto draft, so they are paid on-time and in-full.

While it is just $400, I am fighting hard on this. I asked for proof of "increased usage" and thus far, they haven't given me any evidence of this.  Since my deposits supposedly earn interest, I have inquired as to the current value of my $250 deposit that I made in 2005.  Crickets on that so far, too. 

As of now, they are saying that, by not paying another $100 deposit, by services could be subject to disconnect.  I'm not buying it, and I'm not writing a $400 check to them.  

[V.G Jason]

I would not respond to anything they ask of you, until they show you how the original $250 is sitting.

Make them play offense, first. If/when they give you that-- which I doubt they will-- then you play a little more offense and say that should solve any notion of increased usage without firm evidence.

They won't disconnect your utilities, you could sue and have a far larger case to win. Especially, if the utilities are disconnecting you at the least convenient time. A lot of this "cash" grab is to subsidize this storm hitting the east coast starting next weekend. There will likely be an increased usage, but if you pay on time you are fine. 

I would advise against auto-draft, I know its convenient but you never know when they tack on something and just draft from you and you have to fight for it back. That's just me though.