Power Rules & Regulations (Approved July 2019)
Each prospective Customer desiring electric service may be required to sign MUC's standard form of application for service or contract before service is supplied, discontinued, or transferred by MUC. In order to establish a utility account, the customer should be able to prove they have “the right to effect service.” This right may be established through the presentation of a signed lease, deed or other legal document demonstrating ownership. Customers renting property may provide a rent receipt or lease agreement. If more than one individual is listed on the documentation, all individuals listed may be recorded on the MUC account.
2. Customer Deposits
3. Point of Delivery
A cash deposit or suitable guarantee equal to approximately two times the highest average monthly bill for the class may be required of any Residential Customer before electric service is supplied. Commercial and Industrial Customers will be charged two times the highest monthly bill for the proposed service location. Commercial accounts in the GSA1 class can be set up on FlexPay in lieu of a deposit. FlexPay is a pay as you go service that does not receive a monthly statement and requires the account to keep a positive balance in order to stay active. Details are available at our Customer Service Department. These customers may elect to substitute either a Bank Financial Letter of Credit or a Surety Bond provided by an approved insurance underwriter in lieu of a cash deposit. Should usage for a location not be available, the consumption and subsequent deposit will be determined by consultation with our Engineering Department. Consistent with PURPA standards, cash deposits shall earn interest at an amount equivalent to the System’s earnings rate on operating funds. Deposit balance and interest earned is subject to annual review with interest earned being applied to the customer’s account on an annual basis. Upon termination of service, deposit may be applied by Commission against unpaid bill of Customer, and if any balance remains after such application is made, said balance shall be refunded to the Customer. Customers must provide a cash deposit or suitable guarantee prior to placing permanent service in the customer’s name and failure to provide such deposit may result in disconnect of temporary construction service. Customers previously qualified under the TVA Enhanced Security Deposit Program who subsequently lose eligibility, customers who fail to renew Bank Financial Letters of Credit, or customers who have their Surety Bonds terminated shall provide a cash deposit or suitable guarantee within 30 days of notice by MUC or the deposit will be recovered in equal amounts over a six month period added to the monthly bill. Failure to meet the customer deposit requirements may result in disconnection of service. Residential customers may request their deposit be refunded from an active MUC account provided the customer’s credit history is acceptable as defined in Section 11 of this document. Such refunds will be provided as a credit to the utility bill. Additional information regarding customer deposits may be found in the MUC Customer Deposit Policy F10-008.
The point of delivery is the point, as designated by MUC, on Customer's premises where current is to be delivered to building or premises. All wiring and equipment beyond this point of delivery shall be provided and maintained by Customer at no expense to MUC.
4. Customer's Wiring - Standards
All wiring of Customer must conform to MUC's requirements, the City of Morristown's Electrical Ordinances, and accepted modern standards as exemplified by the requirements of the National Electrical Safety Code and the National Electrical Code.
MUC shall have the right, but shall not be obligated, to inspect any installation before utility service is introduced, or at any later time, and reserves the right to reject service to any facilities not in compliance with MUC standards; but such inspection or failure to inspect or reject shall not be regarded as an assurance against defects in installation or an assurance of the quality or safety of appliances or their installation, and shall not render MUC liable or responsible for any loss or damage to person or property resulting from defects in the installation, or from appliances, or the installation thereof, or from violation of MUC's rules and regulations, or from accidents which may occur upon the applicant's premises, it being understood that utility installations and their safety shall be the sole responsibility of the applicant. The Applicant further agrees to claim no damage on account of interruption of electrical service, it being understood that the rates charged applicant do not contemplate uninterrupted service guarantees.
6. Underground Electric Distribution & Service Lines
Customers desiring underground primary distribution lines from MUC's overhead service system must bear 100% of the cost difference between overhead and underground construction. Customers desiring underground service lines from MUC's distribution system must bear 100% of the cost difference between overhead and underground construction. Specifications and terms for such construction will be furnished by MUC on request.
7. Customer's Responsibility for Commission's Property
All meters, service connections, and other equipment furnished by MUC shall be, and remain, the property of MUC. Customer shall provide a space for and shall exercise proper care to protect the property of MUC on Customer's premises and in the event of loss or damage to MUC's property arising from neglect of Customer to care for same, the cost of the necessary repairs or replacements shall be paid by Customer. Customer shall in no way tamper with MUC's meter or electrical equipment. Customer shall control existing trees/shrubbery and refrain from new plantings so as to prevent interference with utility lines and other property of MUC. Customer and/or Customer’s contractor should refrain from digging or construction without contacting Tennessee One-Call System (call 811 or 1-800-351-1111) and allow time for marking of underground lines. In the event such facilities are interfered with, impaired in their operation, or damaged by Customer, or by any other person when the Customer’s reasonable care and surveillance could have prevented such, the customer shall indemnify MUC or any other person against death, injury, loss, or damage resulting there from, including but not limited to MUC’s cost of repairing, replacing, or relocating any such facilities.
8. Right of Access
MUC's identified employees shall have access to Customer's premises at all reasonable times for the purpose of tree pruning, reading meters, testing, inspection, repairing, removing, or exchanging any or all equipment belonging to MUC. Customer is also responsible for the protection of MUC's employees from Customer's pets and animals.
Bills will be rendered monthly and shall be payable on or before the designated due date of bill at the office of MUC or other authorized designated locations. Failure to receive bill will not release Customer from payment obligation. The bill is due and payable on billing date. The final date for paying net amount of bill is no later than l5 days from billing date. Payments after the l5-day period will be subject to a late payment charge. The late payment charge will be computed as a charge of 5 percent of the first $250.00 portion of the electric bill, plus l percent of the remaining portion of the bill excluding other charges and sales tax. MUC will mail a second notice for any and all delinquent bills stating that unless the bill is paid within five (5) days from the postmark date of the second notice, service is subject to termination without further notice. A notice that service is subject to termination for nonpayment will be printed on the second notice. This notice will include:
- The amount due, including any other charges
- The last date of payment to avoid disconnection
- Information explaining that billing disputes may be addressed to the Service Manager at 423-586-4121.
MUC may refuse to connect or may discontinue service for the violation of any of its Rules and Regulations, or for violation of any of the provisions of the Schedule of Rates and Charges, or for violation of Customer's application or Customer's contract.
MUC may discontinue service to Customer for the theft of current or the appearance of current theft devices on the premises of Customer. The discontinuance of service by MUC for any cause as stated in this rule does not release Customer from Customer's obligation to MUC for any payment of any bills as specified in application of Customer or contract with Customer.
The Service Manager and General Manager may be contacted at 423-586-4121 and are available to hear complaints and disputes if they are not satisfactorily settled with regular Customer Service personnel. Hearings on disputed bills will be held by appointment at MUC's office on any business day. The Service Manager or his designee will hear the evidence, render a decision in writing and shall promptly provide the customer with a copy of said decision. The customer may no later than noon of the fifth business day after a decision is rendered, submit a request for an appeal hearing conducted by the General Manager. The General Manager will hear evidence and render a final decision in writing and shall
promptly provide the customer with copy of such decision. The customer requesting a hearing has the right to examine MUC's records pertaining to that customer's service. In addition, the customer has a right to have a representative at the hearing, to testify and to present witnesses. The Customer's service will not be discontinued until after the above procedures have been complied with. A copy of the hearing and appeal procedures will be posted in MUC's offices.
MUC will exercise special consideration for elderly and handicapped customers as well as those with life support equipment operated by electricity. Additional information regarding life support assistance or medical hardship certification is available in the office of the General Manager under Resolution 2007-09-01.
Services may not be discontinued during time periods that the temperature is forecasted by the National Weather Service at Morristown to be below 25 degrees or above 95 degrees within the next 24 hours.11. Miscellaneous Service Charges
A Miscellaneous Service Charge will be billed to the Customer for the following reasons:
- Deposit for Residential electric service $300.00 *
- Deposit for Residential water service $50.00
- Returned Check Charge $35.00
- Trip/Connect/Disconnect/Reconnect Charge $35.00
- Trip/Connect/Disconnect/Reconnect Charge after Hours $75.00
- Disconnect/Reconnect Service at Pole during Office Hrs. $50.00
- Disconnect/Reconnect Service at Pole after Office Hrs. $200.00
- Customer Compliance with MUC Rules/Repairs $75.00
- Meter Test $50.00
- Temporary Pole Service Connect $100.00
*If credit rating can not be verified due to absence of social security number or other reasons, an additional $100 may be required supplemental to the standard deposit amount.
*Residential customer deposits may be waived provided the customer’s credit score is acceptable. This waiver is subject to change based on customer’s continued favorable credit rating and or payment history with MUC. Using a national credit reporting agency, credit scores in the following ranges will determine the applicable deposit amounts:
620 or greater = Deposit may be required
619 or less = Deposit required
Customers in the GSA1 class meeting the following criteria may be eligible for alternative deposit amount: acceptable established MUC credit history (good or higher), minimum 3 year MUC service history, a minimum of 6 locations/connections with service in the customer’s name, credit rating commensurate with the ratings listed above. The deposit for customers meeting these criteria will be $100 per account.
Customers that expect to maintain an account for electrical service for less than one month billing interval (such interval may be recurring on an intermittent basis until such time that the customer ceases to require any electrical service), may be required to provide a continuing security deposit of $100 per meter. This deposit will retained until such time that the account is permanently terminated. This deposit may be waived if the customer meets the credit criteria noted above. Additional information concerning deposits may be found in the MUC Customer Deposit Policy F10-008.
12. Termination of Contract by Customer.
13. Temporary Service Charges
Customers requiring electric service on a temporary basis may be required by MUC to pay all cost for connection and disconnection incidental to the supplying and removing of service including a temporary pole charge. This rule will apply to circuses, carnivals, fairs, temporary construction, etc.tc.14. Interruption of Service
MUC will use reasonable diligence in supplying current, but shall not be liable for breach of contract in the event of, or for loss, injury, or damage to persons or property resulting from, interruptions in service, excessive or inadequate voltage, single-phasing, or otherwise unsatisfactory service, whether or not caused by negligence.15. Shortage of Electricity
In the event of an emergency or other condition causing a shortage in the amount of electricity for Distributor to meet the demand on its system, Distributor may, by an allocation method deemed equitable by Distributor, fix the amount of electricity to be made available for use by Customer and/or may otherwise restrict the time during which Customer may make use of electricity and the uses which Customer may make of electricity. If such actions become necessary, Customer may request a variance because of unusual circumstances including matters adversely affecting the public health, safety and welfare. If Customer fails to comply with such allocation or restriction, Distributor may take such remedial actions as it deems appropriate under the circumstances including temporarily disconnecting electric service and charging additional amounts because of the excess use of electricity. The provisions of the Section entitled Interruption of Service of this Schedule of Rules and Regulations are applicable to any such allocation or restriction.16. Voltage Fluctuations Caused by Customer
Customer shall operate its facilities as not to cause unusual fluctuations or disturbances on MUC’s system. Customer agrees to install and maintain, when requested by MUC, necessary corrective devices approved by MUC to maintain power quality within reasonable limits as established by applicable ANSI STANDARDS. Harmonic voltage limits shall conform at minimum to the IEEE-519 Recommended Practices and Requirements for Harmonic Control in Electrical Power Systems. Customer shall provide MUC with a suitable and acceptable plan to prevent unusual fluctuations caused by the Customer’s utilization of disturbing loads. If Customer fails to implement corrective action after reasonable notice, MUC shall then make changes to its distribution system necessary to prevent unusual fluctuations caused by the Customer at the Customer’s expense.
The service connection, transformers, meters, and equipment supplied by MUC for each Customer have definite capacity, and no addition to the equipment or load connected thereto will be allowed, except by consent of MUC. Failure to give notice of any additions or changes in load, and to obtain MUC's consent for same, shall render Customer liable for any damage to any of MUC's lines or equipment caused by the additional or changed installation.
18. Standby and Resale Service
All purchased electric service (other than emergency or standby service) used on the premises of Customer shall be supplied exclusively by MUC, and Customer shall not, directly or indirectly, sell, sublet, assign, or otherwise dispose of the electric service or any part thereof.
19. Notice of Trouble
Customer shall notify MUC immediately should the service be unsatisfactory for any reason, or should there be any defects, trouble, or accidents affecting the supply of electricity. Such notices, if verbal, should be confirmed in writing.20. Non-Standard Service
Customer shall pay a Facility Charge for any special installation necessary to meet Customer's requirements for service at other than standard service provided by the Distributor in accordance with existing rate schedule.21. Meter Tests
MUC will, at its own expense, make periodic tests and inspections of its meters in order to maintain a high standard of accuracy. MUC will make additional tests and inspections of its meter installations at the request of the Customer. If testing of the meter shows accuracy within 2%, the Customer will be charged for the cost of the test. In cases where the test shows meter accuracy outside 2%, an adjustment will be made in the Customer’s bill for the partial month during which the test was made and the previous month’s bill. All costs for this testing will be paid by MUC. In the case of meter failure or loss of data for all or part of a billing period, MUC will estimate consumption from the best information available.22. Commission-Owned Equipment
MUC shall, at the request of Customer, relocate or change existing MUC-owned equipment. Customer shall reimburse MUC for such changes at actual cost including appropriate overheads.
23. Billing Adjusted to Standard Periods
The demand charges and the blocks in the energy charges set forth in the rate schedules are based on billing periods of approximately one month. In the case of final billings where the period covered by the billing is over, or less than, a month, the demand charges and the blocks of the energy charge will be prorated for the period of time for which service was rendered.
24. Residential Energy Service Program
MUC as part of its electric service will arrange to offer available funds to eligible customers for electric Heat Pumps/Water Heaters. Eligible Customers must sign repayment agreements under which the funds will be repaid to MUC. Monthly repayment amounts due for this service will be included as part of the electric bills from MUC.
25. Scope and Information
MUC will make available to Customer upon application for service, and anytime upon request, information concerning current service practice policies and current rates applicable to such Customer. Upon request a Customer will receive a statement of such Customer's monthly kWh consumption for the prior l2-month period if it is reasonably attainable. Customer shall be notified of the availability of the current rate schedule, MUC's policies, and consumption information by the most practical combination of advertisements and/or mail. To the extent practicable, Customers shall be notified of any proposed changes deemed to be significant by MUC in MUC's rates, Rules and Regulations, and/or policies prior to implementation of such changes by the most practical combination of mail, newspaper and/or MUC’s website or other technological means of communication if available. All retail rate actions initiated by MUC shall be communicated to the Customer by public statement issued either through print media or electronic media in order to reach the majority of Customers in MUC’s service are. The Schedule of Rules and Regulations is a part of all contracts for receiving electric service from MUC and applies to all service received from MUC, whether the service is based upon contract, agreement, signed application, or otherwise. A copy of this Schedule, together with a copy of MUC's Schedule of Rates and Charges, shall be kept open to inspection at the offices of MUC.
Except as provided above in section 25, these Rules and Regulations may be revised, amended, supplemented, or otherwise changed from time to time, without notice. Such changes, when effective, shall have the same force as the present Rules and Regulations and will be kept open to inspection at the offices of MUC.
In case of conflict between any provision of any rate schedule and the Schedule of Rules and Regulations, the rate schedule shall apply.
28. Policy of Non-Discrimination
MUC has and holds a policy of not discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income is derived from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act and the Fair and Accurate Credit Transactions Act.
29. Three Phase Load Limitations
Customer agrees to obtain approval from MUC prior to the installation of all electric furnaces of 200 kW and larger, and for three phase electric motors of 150 HP and larger for across the line starting.
30. Single Phase Load Limitations
Customer agrees to obtain approval from MUC prior to the installation of single phase electric motors 10 HP and larger. No single phase load above 100 kW will be served.
31. Customers Communications Requirements for Metering
Customers with metering that requires telephone communications shall supply at Customer’s expense a dedicated analog telephone line; this line cannot pass through the Customer’s telephone switch.
32. Allowable Fixed Capacitors for Power Factor Correction
Customers are allowed to install fixed, unswitched, capacitors on the secondary side of MUC’s transformers for correction of power factor at a KVAR rating not to exceed ten (10) percent of the installed transformer bank capacity in KVA.
33. Customer Use of Generators
Customers utilizing generators for emergency power shall provide a disconnecting means to assure generated power and utility power cannot serve the same load simultaneously. Disconnecting means, such as a double- throw switch, must assure the generator power has no return path to Commission supplied meters, equipment or wires. Customer generated power represents an extreme danger to Commission employees working on lines considered de-energized. The Customer may not add generation capacity that has the ability to flow back to the MUC meter presenting danger to employees or other customer, or that impacts MUC’s electrical network without the express written consent of MUC. Examples of possible generation would be photovoltaic systems, wind generation, backup generators, battery storage, and combustion generation of any type. MUC may discontinue service in order to protect its network and employees, or until such time the Customer provides disconnect means that meets all MUC, local, state, Tennessee Valley Authority, and Federal Energy Regulatory Commission requirements. For approved installations, any additional capacity added at a later date must also be approved by MUC in advance.
34. Line Extension for Residential Locations
Customers or developers of approved residential subdivision developments with requests for three phase power requirements and/or projected capital investments greater than $300.00 shall post a deposit to MUC in an amount equal to the estimated cost to serve the development via standard overhead distribution for a term of ten (10) years. The deposits and released portions shall be administered in accordance with MUC Policy F-10.006.
35. Line Extensions for Private Industrial and Commercial Developments
Customers or developers of private industrial and/or commercial developments with requests for three phase power requirements shall pay a monthly investment charge of 1.5 % per month of the allocated costs to serve the development via standard overhead distribution. In addition, the customer must provide a deposit to MUC to cover the full allocated cost during the investment period until the amount is recovered in whole. The investment charge deposit shall be administered in accordance with MUC Policy F- 10.007.36. Contract Demand
Where mandated by TVA contract and applicable rate schedules. MUC may require the customer provide electric load information sufficient in order to determine the contract demand, absent of which MUC reserves the right to establish the contract demand. It shall be the policy of MUC to set the contract demand kW equal to the installed transformer kVA capacity unless lower demands are determined appropriate by MUC.37. Load Control Program
As part of its electric service and under a load control program conducted by MUC and TVA, MUC and/or TVA operates load control devices placed upon the premises or equipment of Customers who have agreed to the installation of such devices in order to reduce demand upon MUC’s and/or TVA’s system. MUC and/or TVA may from time to time by publishing a notice in a daily newspaper in Morristown, Tennessee, or by notice on Customer’s bills, establish, modify, or rescind times, conditions, and durations of operation of load control devices and establish, modify, or rescind incentive payments to be made to Customers on whose premises or equipment load control devices have been installed. At any time, Customers, at their option, may terminate their participation in load control programs operated by MUC and/or TVA, after which the load control devices will be removed or disconnected from their premises or equipment. Damages shall be limited to the repair and/or replacement of equipment under warranty at the sole discretion of MUC.38. Customer Specific Energy Use Data
Upon request, using procedures established by MUC and in accordance with Tennessee Code Annotated Section 10-7-504, MUC will make available to customers their available energy consumption data. MUC will not provide to other parties any customer’s individually identifiable energy consumption data or other individually identifiable customer data collected by MUC without the customer’s authorization, using authorization procedures established by MUC. Aggregated energy use data will be utilized only by MUC and parties authorized by MUC in order to enhance system security, reliability, and improve system efficiency and will not be provided to any other parties except with MUC approval. Nothing in this paragraph limits TVA’s rights as provided under the Wholesale Power Contract.