City of Austin electricity connect fee? (apartment complex, renters, credit)

[crashoran]

I'm looking at apartments in south austin, and so far two places have quoted me a $200 fee to connect the electricity. Is this the norm or are they trying to squeeze a little extra out of me? This is my first apartment.

[spelrod]

Is it a fee or a deposit? If you don't have a history with Austin Energy they might be charging you a deposit. You get it back as a credit on your bill eventually, if that's the case.

http://www.austinenergy.com/Customer...ndDeposits.htm

[CptnRn]

Call Austin Energy customer service and ask them what charges are involved. (512) 494-9400

It has been along time since I had to rent an apartment, but I can think of no good reason for the apartment complex charging you anything to make a utility connection. I would expect any charges to initiate an account should be paid directly to Austin Energy.

I would ask them to explain why they are charging you instead of it being through the utility company.

[crashoran]

I don't know yet if it is a fee or deposit. I'll have to ask. Energy customer service just gives me automated options, I'll have to wait until next week to call. Thanks

[h886]

That seems odd to me, but it's been awhile since I rented an apartment. I was never charged anything like that, but then I did have a cosigner at first, and then by the time I rented one on my own, I already had a strong credit history and a history with the electric company, so they knew I was good for the bills.

Is this fee paid to the apartment complex, or directly to the electric company? I would be wary if it was to the apartment complex, but maybe this is standard for first time renters now. Do you have a strong credit history and/or is this like a deposit? Can you show them proof of employment? Maybe they're worried you'll skip out without paying and leave them with the bill?

[crashoran]

I looked at spelrod's link and it looks like it's a $200 deposit to austin energy that I will get back after one month. I'm just curious if the $20 "initiation fee" is the same thing as a connection fee?

[spelrod]

I think you have to pay on time for 12 months consecutively before they give you back the deposit.

Deposits
The City will refund customer deposits to the account in the month following compliance with these provisions:
The total balance due has been paid before the penalty due date during the last 12 consecutive billing cycles for the same account for residential customers
The total balance due has been paid before the penalty due date during the last 24 consecutive billing cycles for the same account for commercial customers

[crashoran]

Originally Posted by spelrod

I think you have to pay on time for 12 months consecutively before they give you back the deposit.

Well in that case it really makes no difference, they've got my money for a considerable amount of time.

[spelrod]

But think about the juicy .83% interest you'll make when they give it back. That's a whole $1.66, you could buy a candy bar!

[crashoran]

Originally Posted by spelrod

But think about the juicy .83% interest you'll make when they give it back. That's a whole $1.66, you could buy a candy bar!

I wonder how much interest they make off of my deposit.