What Is a Utility Bond?
Both public and private utility companies often require businesses to post a utility bond before allowing them to use their services. Individuals need to obtain a utility bond only in specific cases, such as failure to make timely payments to the utility provider.
The purpose of a utility deposit bond is to protect utility companies from default on payments by users, and to ensure their timely execution.
Utility bonds are a kind of surety bonds, but they fall in the special category of financial guarantee bonds. They are considered to pose a higher risk for sureties since they involve covering due payments.
Just like other bonds, a utility bond is a contractual agreement between three entities:
- A principal - you or your business
- An obligee - the utility company that requires the bond
- A surety - the bond provider
Failure to make the necessary payments to your utility provider can lead to a claim against your bond. In the Questions section below, you can learn more about how claims are handled for utility surety bonds.
Questions about Utility Bonds
Who needs to obtain a utility bond?
The majority of utility companies will ask you to post a utility bond before they start servicing your business. If your company wants to get connected to electricity, water and other services, you will have to obtain such a bond.
Usually utility providers do not require individual homeowners to get bonds, but if you have a track record of late or default payments, you might be asked to post one.
Similarly to other bonds, a utility bond does not protect you or your business. It is a guarantee for your utility company that you will make all due payments for the services they have provided for you.
How much does a utility bond cost?
Before providing service for your home or business, the utility company will determine the surety bond amount that you need to post as a security. The amounts vary between states and utility providers.
Your surety bond cost depends on the amount set by the utility provider, and on your financial status. To get bonded, you don’t need to pay the full sum, but only a percentage of known as the bond premium. Your bonding rate is typically determined on the basis of your personal credit profile. If you have strong credit, the usual premium rate for utility bonds is between 1% and 5%.
If you are asked to post a $20,000 utility bond, you might end up paying between $200 and $1,000 for it.
The top indicator that sureties consider when reviewing your bond application is your personal credit score. Other factors include your business assets and liquidity, financial security, and professional experience. The better these stats look, the lower the bonding rate will be, which means a cheaper surety bond cost.
You can use our surety bond cost guide to get an understanding of how bond premiums are set.
Can I get a utility bond with bad credit?
As utility bonds are financial guarantee bonds, they are considered higher risk ones. The reason for this is that in case the principal defaults, the surety will take direct financial losses.
Many sureties avoid underwriting such bonds because of the increased risk. Here at Lance Surety Bonds, we’re committed to providing you with the utility bonds you need, even if your credit score is far from stellar. That’s why we are running our Bad Credit Program and serving bond applicants with problematic finances or past tax liens, civil judgments or bankruptcies.
The usual bonding rates for bad credit utility bonds start at around 5%, but can go as high as 20% of the bond amount. The higher premium is needed in order to compensate for the riskier bonding. However, it is still a great opportunity to get the utility revenue bond your home or business needs, so you can get electricity, water, and other necessary services running in your buildings.
Lance Surety Bonds works with a number of trusted A-rated, T-listed surety companies, so we are able to get you the best bond price for your particular circumstances.
How do I get my utility bond?
You can launch the process of getting your utility revenue bond today. Just apply online for your free, no-obligations quote. When you complete your application and send over all necessary documents, we’ll get back to you with your bond price in no time.
Usually utility companies require you to use their specific bond forms, so you’ll need to use the form of their preference. In case they don’t have a standard one, we can provide you with a utility bond form, but you will need to ensure that it is approved by your utility provider.
Call us today at (877) 514-5146 to discuss your bond application or get your questions answered by our bonding experts. You can also contact us via email if your prefer.
How do I renew my utility bond?
In most cases, utility bonds are continuous. This signifies that you or your business must have the bond active at all times, in order to keep using the services of your utility provider. Failing to do so may lead to your utilities being shut off.
With Lance Surety Bonds, you don’t have to worry about missing your bond renewal deadline. We will notify you a few months in advance, so you will have plenty of time to react and renew your utility bond. The first notification will be followed by mail, fax, and email, in order to make sure you don’t forget to renew your bond.
Every time you renew your utility bond, you can decrease your surety bond cost by improving your financial stats, and showcasing the strength of your business.
How are bond claims handled for utility bonds?
Unlike insurance, surety bonds do not protect you or your business. Here’s why that’s important.
The goal of utility bonds is to guarantee that you will not financially harm your utility provider, by defaulting or delaying due payments. If you fail to cover all your bills in time, the utility company can make a claim on your bond.
Proven claims entail repayment to the utility provider up to the penal sum of the bond, which is initially done by the surety. As the bond principal, you are then expected to fully reimburse any claims.
Avoiding claims is the wisest course of action for both homeowners and businesses. They can cause serious financial harm, and prevent you from getting bonded in the future.
Find Your Surety Bond
|Alabama||Indemnity Bond for Electric Service and/or Steam H||ALABAMA POWER||Apply Now|
|Alabama||Indemnity Bond for Gas Service||Alabama Gas Corporation||Apply Now|
|Alabama||Huntsville Utilities Bond||Huntsville Utilities||Apply Now|
|Alabama||Florence Utilities Deposit Bond||Florence Utilities, City of Florence AL||Apply Now|
|Alabama||Payment of Utility Bills Bond (Decatur Utilities)||Decatur Utilities||Apply Now|
|Arizona||APS Electric Service Bond||Arizona Public Service||Apply Now|
|Arizona||Salt River Project Utility Deposit||Salt River Project - Commercial Credit Dept.||Apply Now|
|Arizona||Utility Deposit||Tucson Electric||Apply Now|
|Arizona||Bond for Utility Users||Corporation Commission||Apply Now|
|Arizona||Sulphur Springs Valley Electric Utility Deposit Bo||SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC||Apply Now|
|Arizona||Payment of Utility Services Bond||City of Mesa: Attention Credit Services||Apply Now|
|Arkansas||Paragould Light Water and Cable Utility Bond||PLWC||Apply Now|
|Arkansas||Entergy Arkansas, Inc. Electric Service Bond||Entergy Arkansas, Inc.||Apply Now|
|California||SURETY BOND / BILL GUARANTY||PG&E||Apply Now|
|California||Public Utilities Commission||Public Utilities Commission||Apply Now|
|California||Edison Company||Southern California Edison Company||Apply Now|
|California||Southern California Gas Company Bond||Southern California Gas Company||Apply Now|
|California||SDGE Utility Deposit Bond||SAN DIEGO GAS & ELECTRIC||Apply Now|
|California||Sacramento Municipal Utility District Bond||Sacramento Municipal Utility District||Apply Now|
|California||Modesto Irrigation District Utility Deposit Bond||Modesto Irrigation District||Apply Now|
|California||SCEC Utility Deposit Bond||Southern California Edison Company||Apply Now|
|California||Southwest Gas Corporation Utility Bond||Southwest Gas Corporation||Apply Now|
|California||City of Los Angeles Utility Bond||Department of Water and Power||Apply Now|
|California||Electric Service Provider Bond||California Public Utilities Commission||Apply Now|
|California||Telephone Corporation Bond (CPUC)||Public Utilities Commission of California||Apply Now|
|Colorado||La Plata Electric Association Utility Payment Bond||La Plata Electric Association||Apply Now|
|Connecticut||CT Light & Power Surety||Connecticut Light & Power||Apply Now|
|Florida||Withlacoochee River Electric Cooperative||Withlacoochee River Electric Cooperative||Apply Now|
|Florida||Electric and/or Water Service Bond||Jacksonville Electric Authority||Apply Now|
|Florida||OUC Utility Deposit Bond||Orlando Utilities Commission||Apply Now|
|Florida||Utility Deposit Bond||Florida Power Light Company||Apply Now|
|Florida||Utility Deposit Guaranty Bond||Lakeland Electric||Apply Now|
|Florida||Hillsborough County Water and/or Wastewater Servic||Hillsborough County, FL||Apply Now|
|Florida||GRU Utility Bond||Gainesville Regional Utilities||Apply Now|
|Florida||Gulf Power Company Utility Deposit Bond||Gulf Power Company||Apply Now|
|Florida||Progress Energy Utility Deposit Bond||Progress Energy Florida - Credit Dept ? BAY 71||Apply Now|
|Florida||Utility Payment Bond||Florida Public Utilities||Apply Now|
|Florida||Orlando Utility Commission Bond||City of St. Cloud,OUC||Apply Now|
|Florida||TECO Electric Utility Bond||Tampa Electric Company||Apply Now|
|Florida||Emerald Coast Utilities Authority Indemnifying Bon||Emerald Coast Utilities Authority||Apply Now|
|Florida||TECO Gas Bond||TECO Peoples Gas||Apply Now|
|Florida||Utility Services Furnished by Beaches Energy Bond||Beaches Energy Services||Apply Now|
|Florida||Orange County Utilities Services Bond||ORANGE COUNTY UTILITIES SERVICES||Apply Now|
|Florida||Sumter Electric Cooperative, Inc. Bond||Sumter Electric Cooperative, Inc.||Apply Now|
|Florida||Duke Energy Utility Deposit Bond||Duke Energy Florida, Inc.||Apply Now|
|Florida||Kissimmee Utility Authority Utility Deposit Bond||KISSIMMEE UTILITY AUTHORITY||Apply Now|
|Florida||City of Tallahassee Utility Deposit Bond||City of Tallahassee||Apply Now|
|Florida||City of Winter Park Utility Deposit Bond||City of Winter Park||Apply Now|
|Florida||In Lieu of Deposit Bond Utility Commision for New||Utility Commission for New Smyrna Beach||Apply Now|
|Georgia||Georgia Utility Deposit||Snapping Shoals||Apply Now|
|Georgia||Georgia Power Company, McDonough, GA||Georgia Power Company||Apply Now|
|Georgia||Financial Guarantee||Walton EMC||Apply Now|
|Georgia||Utility Service Guaranty||GreyStone Power Corporation||Apply Now|
|Georgia||Gas Utility Deposit||The City of Madison||Apply Now|
|Georgia||Snapping Shoals Utility Payment Bond||Snapping Shoals||Apply Now|
|Georgia||Jackson Electric Membership Corporation Electric S||Jackson EMC||Apply Now|
|Georgia||Marietta BLW Service Agreement Bond||Marietta Board of Lights and Water||Apply Now|
|Iowa||Alliant Energy Utiltiy Bond||Alliant Energy||Apply Now|
|Kansas||The Empire District Company||The Emipre District Company||Apply Now|
|Kansas||Westar Energy Electric Utility Service Bond||Westar Energy, Inc.||Apply Now|
|Kentucky||City of Henderson Utility Payment Bond||City of Henderson Utility Commission||Apply Now|
|Local Government||North Little Rock Electric Utility||North Little Rock Electric||Apply Now|
|Local Government||Payment of Utility Services||City of Mesa, AZ||Apply Now|
|Local Government||Fort Pierce Utilities Authority Indemnity Bond||Fort Pierce Utility Authorities||Apply Now|
|Local Government||Utility Deposit Bond||Kansas City Board of Public Utilities||Apply Now|
|Local Government||Utility Deposit Bond||City of Fort Worth Water Department||Apply Now|
|Louisiana||Utility Payment Bond||Claireborne Electric||Apply Now|
|Louisiana||In Lieu of Cash Deposit Bond||SWEPCO||Apply Now|
|Louisiana||Electric and or Gas Service Bond (Entergy Gulf Sta||Entergy Gulf States Louisiana, LLC||Apply Now|
|Louisiana||Utility Payment Bond (CLECO)||Cleco Louisiana||Apply Now|
|Maine||Retail Store Bond (Central Maine Power Company)||Central Maine Power Company||Apply Now|
|Maryland||Baltimore Gas & Electric Utility Bond||Baltimore Gas & Electric||Apply Now|
|Massachusetts||Utility Deposit Bond||NSTAR Electric Company||Apply Now|
|Michigan||Bond Guaranteeing Payment of Utility Bills||Consumers Energy||Apply Now|
|Minnesota||Anoka Municipal Utility Bond||anoka municipal utility (AMU)||Apply Now|
|Mississippi||Natural Gas Service Bond||Willmut Gas Co.||Apply Now|
|Mississippi||Electric Service Bond||Pearl River Valley Electric Power Association||Apply Now|
|Mississippi||Electric Service Bond||Central Electric Power Association||Apply Now|
|Mississippi||Utility Deposit Bond (4-County Electric Power Asso||4 County Electric Power Association||Apply Now|
|Mississippi||Electric Service Indemnity Bond (Coast Electric Po||Coast Electric Power Association||Apply Now|
|Missouri||The Empire District Company||Empire Electric||Apply Now|
|Missouri||Utility Guarantee||White River Valley Electric Cooperative||Apply Now|
|Missouri||City of Columbia, Utility Customers Bond||City of Columbia Finance Dept||Apply Now|
|Missouri||Electrical Service Bond||KCP&L||Apply Now|
|Nevada||Utility Deposit Bond||Las Vegas Valley Water District||Apply Now|
|New Jersey||Energy Consultant Bond||New Jersey Treasurer||Apply Now|
|New Jersey||Utility Deposit Bond||New Jersey Board Of Public Utilities- Audit/Licens||Apply Now|
|New Mexico||Utility Deposit Bond||Public Service Company of New Mexico||Apply Now|
|New York||Utility Deposit Bond||NIAGARA MOHAWK POWER CORP dba NATIONAL GRID||Apply Now|
|New York||Long Island Lighting Company Utility Deposit Bond||Long Island Power Authority||Apply Now|
|New York||(PSEGLI) Utility Payment Bond||Public Service Enterprise Group Long Island (PSEGL||Apply Now|
|North Carolina||Duke Energy||Duke Energy||Apply Now|
|North Carolina||Utility Deposit Bond||Progress Energy Carolinas, Inc.||Apply Now|
|North Carolina||Utility Guarantee Bond||Kinston Public Services||Apply Now|
|North Carolina||Union Power Cooperative Bond||Union Power Cooperative||Apply Now|
|North Carolina||Utility Deposit Bond||Dominion North Carolina Power||Apply Now|
|North Carolina||Utility Deposit Bond||Duke Energy Florida, Inc||Apply Now|
|North Carolina||In Lieu of Deposit Bond||City of New Bern||Apply Now|
|North Carolina||(Duke Energy) Electric Service Bond||Duke Energy Progress||Apply Now|
|Ohio||AEP In Lieu of Cash Deposit Bond||American Electric Power||Apply Now|
|Oklahoma||Utility Service||City of Edmond||Apply Now|
|Oklahoma||OG & E Utility Deposit Bond||OG & E Electric Services||Apply Now|
|Other||United Illuminating Co.||United Illuminating Co.||Apply Now|
|Other||Entergy Mississippi||Entergy Mississippi, Inc.||Apply Now|
|Other||Reading, PA||UGI Utilities||Apply Now|
|Other||Entergy Louisiana||Entergy Louisiana, LLC||Apply Now|
|Other||Utility Service Guaranty||Knoxville Utilities Board||Apply Now|
|Other||Indemnity Bond for Electric Service and/or Steam H||Alabama Power Company||Apply Now|
|Other||Indemnity Bond For Electric Service||MISSISSIPPI POWER COMPANY||Apply Now|
|Other||Utility Service Payment Bond||Tucson Electric Power Company||Apply Now|
|Other||Utility Service Guaranty, Greystone Power Corporat||GreyStone Power Corporation||Apply Now|
|Other||Utility Deposit Surety||Duke Energy||Apply Now|
|Other||Utility Deposit||Arizona Public Service||Apply Now|
|Other||Utility Deposit Bond||Connecticut Natural Gas Corp||Apply Now|
|Other||Utility Deposit Bond||Salt River Project Agricultural Improvement||Apply Now|
|Other||Utility Guarantee||City of Statesville||Apply Now|
|Other||Utility Deposit Bond||Volunteer Energy Cooperative||Apply Now|
|Other||Empire District Electric Utility||Empire Electric||Apply Now|
|Other||Utility Deposit Bond||Coffman Oil Company||Apply Now|
|Other||Utility Deposit||EPB Electric Power||Apply Now|
|Other||Utility Deposit Bond||Progress Energy Florida||Apply Now|
|Other||Utility Bond||South Carolina Electric & Gas||Apply Now|
|Other||Utility Deposit Bond||Duke Energy Attn: Deposit Desk||Apply Now|
|Other||Utility Deposit License||Potomac Edison - Credit Dept||Apply Now|
|Other||Utility Deposit||Progress Energy Carolinas||Apply Now|
|Other||Southwest Gas Corporation Utility Deposit Bond||Southwest Gas Corporation||Apply Now|
|Other||Florida Power & Light Company- Utility Bond||Florida Power and Light Company||Apply Now|
|Other||Southern Pine Electric Power Association: Bond For||Southern Pine Electric Power Association||Apply Now|
|Other||Utility Deposit||Hawaiian Electric Company||Apply Now|
|Other||Utility Deposit||Southwest Gas Corporation||Apply Now|
|Other||Utility Deposit||Paducah Power Systems||Apply Now|
|Other||Utility Deposit Bond||Sevier County Electric System, TN||Apply Now|
|Other||Utility Deposit Bond||CenterPoint Energy, Inc.||Apply Now|
|Other||Wholesale Agreement Bond||Carter Energy||Apply Now|
|Other||Utility Payment (Surety) Bond||National Grid Credit & Collections Dept.||Apply Now|
|Other||Utility Deposit Bond||Pickwick Electric Cooperative||Apply Now|
|Other||Utility Deposit Bond||Jackson Electric Membership Corporation||Apply Now|
|Other||Utility Services Bond||ATMOS ENERGY||Apply Now|
|Other||Entergy Arkansas Utility Deposit Bond||Entergy Arkansas, Inc.||Apply Now|
|Pennsylvania||Utility Deposit Bond (PECO Energy)||PECO Energy||Apply Now|
|South Carolina||Commissioners of Public Works||Greenwood, S.C. CPW||Apply Now|
|South Carolina||Utility Deposit||SCE & G||Apply Now|
|South Carolina||Utility Deposit Bond||SCE&G||Apply Now|
|South Carolina||Santee Cooper Deposit Bond||Santee Cooper||Apply Now|
|Tennessee||Utility Deposit Bond||Clarksville Department of Electricity||Apply Now|
|Tennessee||Electric Service Indemnity Bond (Electric Board of||Electric Board of Chattanooga||Apply Now|
|Tennessee||Murfreesboro Electric Utility Deposit Bond||Murfreesboro Electric Department||Apply Now|
|Tennessee||City of Cookeville Electric Dept. Utility Bond||Cookeville Electric Dept.||Apply Now|
|Tennessee||Memphis Light, Gas & Water Div Indemnity Bond for||Memphis Light, Gas & Water Division||Apply Now|
|Tennessee||Electric Service Furnished Bond (Davidson County,||Nashville Electric Service||Apply Now|
|Tennessee||Utility Bond (Metro Water Services)||Metro Water Services||Apply Now|
|Texas||Utility Deposit Bond||City of Houston||Apply Now|
|Texas||Guaranty Bond||City of Dallas Water Department||Apply Now|
|Texas||Atmos Energy Utility Deposit Bond||Atmos Energy Corporation||Apply Now|
|Texas||Texas-New Mexico Power Company Utility Bond||Texas New Mexico Power Company||Apply Now|
|Texas||Centerpoint Energy Utility Bond||CenterPoint Energy||Apply Now|
|Texas||Utility Payment Bond (Chillicothe Municipal)||City of Chillicothe-Chillicothe Municipal Utilitie||Apply Now|
|Utah||Utility Deposit Bond (In Lieu of Audit)||Rocky Mountain Power||Apply Now|
|Virginia||Electric Services Bond||Dominion Virginia Power||Apply Now|
|Virginia||Electric Services Bond||Dominion North Carolina Power||Apply Now|
|Virginia||Dept. of Public Utilities, City of Richmond Utilit||Richmond Public Utilities||Apply Now|
|West Virginia||In Lieu of Cash Deposit Bond (AEP)||American Electric Power||Apply Now|
|Wisconsin||UTILITY GUARANTEE||WE Energies||Apply Now|