About Security Deposits

All customers who open a new account with Kitchener-Wilmot Hydro are required to pay a security deposit, except in the following exclusions:

  • Banks and credit unions
  • Trust companies; trust company real estate offices excluded
  • Government agencies including City, Region, Provincial, and Federal Offices, including Liquor Control Board of Ontario stores

A deposit for a new account is not required if a customer, other than a customer in a >5,000 kW demand rate class, provides a satisfactory credit check at the customer's expense, or provides a letter of reference from a gas or electricity distributor in Canada confirming a "Good Payment History" for the relevant time period as listed for each rate class:

Rate Class Time Period
Residential customers 12 months
Non-residential customers < 50kW demand 5 years
Non-residential customers > 50kW demand 7 years
Large use customers >5,000 kW demand 7 years

For all rate classes, some of the time period making up the "Good Payment History" must be within the previous 24 months.

For existing customers where a Security Deposit has not been collected, or a customer who was previously granted a security deposit waiver, a Security Deposit will be required if the customer has not maintained a "Good Payment History" for the required time period relevant to their rate class.

Security Deposits may be in the form of cash, cheque, a guaranteed letter of credit from the customer's bank, trust company, or credit union, or a power bond from their insurance company. All guaranteed letters of credit must be "irrevocable" and "automatically renewing".

A Security Deposit may be paid in instalments. When requested, customers shall be permitted to pay deposits in equal instalments over a four-month period, except in the case of an upgrade to an existing deposit, which must be paid in full by the due date.

Security deposits supplied for clients by Social Services may be in the form of a Letter of Credit. Social Services will issue Kitchener-Wilmot Hydro written notification of cancellation of a Letter of Credit and will honour said letters for a period of sixty (60) days from date of written cancellation notices.

Security Deposit Amounts

The maximum amount of a deposit is dependent upon the customer's billing option and rate classification and is calculated in accordance with the Distribution System Code section 2.4.12 and 2.4.16.

Residential Customers - Kitchener-Wilmot Hydro Billed 

'For customers without electric heat $150.00
For customers with electric heat $250

Where a customer has a payment history which discloses more than one disconnect notice, one cheque returned for insufficient funds or in a relevant 12 month period, the deposit amount will be based on 2.5 times the customer's highest monthly bill for the most recent 12 months within the past 2 years.

Residential Customers - Retailer Billed

No deposit required by Kitchener-Wilmot Hydro Inc.

General Service Customer - <50 kW demand rate class

The amount of the deposit will be based on 1.75 times the average bi-monthly load during the most recent 12 months within the past 24 months. Where a customer has a payment history which discloses more than one disconnect notice in a relevant 12 month period, the deposit amount will be based on the customer's highest or estimated bi-monthly load times 1.75 for the most recent 12 months within the past two years.

General Service Customer - >50kW demand rate class and Large Use Customers >5,000 kW demand

The amount of the deposit will be based on 2.5 times the average monthly load during the most recent 12 months within the past 24 months. Where a customer has a payment history which discloses more than one disconnect notice in a relevant 12 month period, the deposit amount will be based on the customer's highest or estimated monthly load times 2.5 for the most recent 12 months within the past two years.

Customers who have a current credit rating (within a recent 12 month period) from a recognized bond rating agency (such as Dominion Bond Rating Service), the amount of a security deposit required may be reduced in accordance with the following table:

Credit Rating Allowable Reduction in Security Deposit
AAA- and above or equivalent 100%
AA-,AA, AA+ or equivalent  95%
A-, from A, A+ to below AA or equivalent 85%
BBB-, from BBB, BBB+ to below A or equivalent 75%
Below BBB- or equivalent 0%

General Service Customer - Retailer Consolidated Billing

No deposit required by Kitchener-Wilmot Hydro.

For full details regarding security deposits, please refer to Kitchener-Wilmot Hydro's Conditions of Service.