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Utility Bond

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  • Bad credit bonding options available
  • Only bonds by A-rated and T-listed bonding companies

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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.

You can find plenty of useful information at our How to Get Bonded page as well.

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.

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Find Your Surety Bond

  • Alabama
    Indemnity Bond for Electric Service and/or Steam H
    ALABAMA POWER
  • Alabama
    Indemnity Bond for Gas Service
    Alabama Gas Corporation
  • Alabama
    Huntsville Utilities Bond
    Huntsville Utilities
  • Alabama
    Florence Utilities Deposit Bond
    Florence Utilities, City of Florence AL
  • Alabama
    Payment of Utility Bills Bond (Decatur Utilities)
    Decatur Utilities
  • Arizona
    APS Electric Service Bond
    Arizona Public Service
  • Arizona
    Salt River Project Utility Deposit
    Salt River Project - Commercial Credit Dept.
  • Arizona
    Utility Deposit
    Tucson Electric
  • Arizona
    Bond for Utility Users
    Corporation Commission
  • Arizona
    Sulphur Springs Valley Electric Utility Deposit Bo
    SULPHUR SPRINGS VALLEY ELECTRIC COOPERATIVE INC
  • Arizona
    Payment of Utility Services Bond
    City of Mesa: Attention Credit Services
  • Arkansas
    Paragould Light Water and Cable Utility Bond
    PLWC
  • Arkansas
    Entergy Arkansas, Inc. Electric Service Bond
    Entergy Arkansas, Inc.
  • California
    SURETY BOND / BILL GUARANTY
    PG&E
  • California
    Public Utilities Commission
    Public Utilities Commission
  • California
    Edison Company
    Southern California Edison Company
  • California
    Southern California Gas Company Bond
    Southern California Gas Company
  • California
    SDGE Utility Deposit Bond
    SAN DIEGO GAS & ELECTRIC
  • California
    Sacramento Municipal Utility District Bond
    Sacramento Municipal Utility District
  • California
    Modesto Irrigation District Utility Deposit Bond
    Modesto Irrigation District
  • California
    SCEC Utility Deposit Bond
    Southern California Edison Company
  • California
    Southwest Gas Corporation Utility Bond
    Southwest Gas Corporation
  • California
    City of Los Angeles Utility Bond
    Department of Water and Power
  • California
    Electric Service Provider Bond
    California Public Utilities Commission
  • California
    Telephone Corporation Bond (CPUC)
    Public Utilities Commission of California
  • Colorado
    La Plata Electric Association Utility Payment Bond
    La Plata Electric Association
  • Connecticut
    CT Light & Power Surety
    Connecticut Light & Power
  • Florida
    Withlacoochee River Electric Cooperative
    Withlacoochee River Electric Cooperative
  • Florida
    Electric and/or Water Service Bond
    Jacksonville Electric Authority
  • Florida
    OUC Utility Deposit Bond
    Orlando Utilities Commission
  • Florida
    Utility Deposit Bond
    Florida Power Light Company
  • Florida
    Utility Deposit Guaranty Bond
    Lakeland Electric
  • Florida
    Hillsborough County Water and/or Wastewater Servic
    Hillsborough County, FL
  • Florida
    GRU Utility Bond
    Gainesville Regional Utilities
  • Florida
    Gulf Power Company Utility Deposit Bond
    Gulf Power Company
  • Florida
    Progress Energy Utility Deposit Bond
    Progress Energy Florida - Credit Dept ? BAY 71
  • Florida
    Utility Payment Bond
    Florida Public Utilities
  • Florida
    Orlando Utility Commission Bond
    City of St. Cloud,OUC
  • Florida
    TECO Electric Utility Bond
    Tampa Electric Company
  • Florida
    Emerald Coast Utilities Authority Indemnifying Bon
    Emerald Coast Utilities Authority
  • Florida
    TECO Gas Bond
    TECO Peoples Gas
  • Florida
    Utility Services Furnished by Beaches Energy Bond
    Beaches Energy Services
  • Florida
    Orange County Utilities Services Bond
    ORANGE COUNTY UTILITIES SERVICES
  • Florida
    Sumter Electric Cooperative, Inc. Bond
    Sumter Electric Cooperative, Inc.
  • Florida
    Duke Energy Utility Deposit Bond
    Duke Energy Florida, Inc.
  • Florida
    Kissimmee Utility Authority Utility Deposit Bond
    KISSIMMEE UTILITY AUTHORITY
  • Florida
    City of Tallahassee Utility Deposit Bond
    City of Tallahassee
  • Florida
    City of Winter Park Utility Deposit Bond
    City of Winter Park
  • Florida
    In Lieu of Deposit Bond Utility Commision for New
    Utility Commission for New Smyrna Beach
  • Georgia
    Georgia Utility Deposit
    Snapping Shoals
  • Georgia
    Georgia Power Company, McDonough, GA
    Georgia Power Company
  • Georgia
    Financial Guarantee
    Walton EMC
  • Georgia
    Utility Service Guaranty
    GreyStone Power Corporation
  • Georgia
    Gas Utility Deposit
    The City of Madison
  • Georgia
    Snapping Shoals Utility Payment Bond
    Snapping Shoals
  • Georgia
    Jackson Electric Membership Corporation Electric S
    Jackson EMC
  • Georgia
    Marietta BLW Service Agreement Bond
    Marietta Board of Lights and Water
  • Iowa
    Alliant Energy Utiltiy Bond
    Alliant Energy
  • Kansas
    The Empire District Company
    The Emipre District Company
  • Kansas
    Westar Energy Electric Utility Service Bond
    Westar Energy, Inc.
  • Kentucky
    City of Henderson Utility Payment Bond
    City of Henderson Utility Commission
  • Local Government
    North Little Rock Electric Utility
    North Little Rock Electric
  • Local Government
    Payment of Utility Services
    City of Mesa, AZ
  • Local Government
    Fort Pierce Utilities Authority Indemnity Bond
    Fort Pierce Utility Authorities
  • Local Government
    Utility Deposit Bond
    Kansas City Board of Public Utilities
  • Local Government
    Utility Deposit Bond
    City of Fort Worth Water Department
  • Louisiana
    Utility Payment Bond
    Claireborne Electric
  • Louisiana
    In Lieu of Cash Deposit Bond
    SWEPCO
  • Louisiana
    Electric and or Gas Service Bond (Entergy Gulf Sta
    Entergy Gulf States Louisiana, LLC
  • Louisiana
    Utility Payment Bond (CLECO)
    Cleco Louisiana
  • Maine
    Retail Store Bond (Central Maine Power Company)
    Central Maine Power Company
  • Maryland
    Baltimore Gas & Electric Utility Bond
    Baltimore Gas & Electric
  • Massachusetts
    Utility Deposit Bond
    NSTAR Electric Company
  • Michigan
    Bond Guaranteeing Payment of Utility Bills
    Consumers Energy
  • Minnesota
    Anoka Municipal Utility Bond
    anoka municipal utility (AMU)
  • Mississippi
    Natural Gas Service Bond
    Willmut Gas Co.
  • Mississippi
    Electric Service Bond
    Pearl River Valley Electric Power Association
  • Mississippi
    Electric Service Bond
    Central Electric Power Association
  • Mississippi
    Utility Deposit Bond (4-County Electric Power Asso
    4 County Electric Power Association
  • Mississippi
    Electric Service Indemnity Bond (Coast Electric Po
    Coast Electric Power Association
  • Missouri
    The Empire District Company
    Empire Electric
  • Missouri
    Utility Guarantee
    White River Valley Electric Cooperative
  • Missouri
    City of Columbia, Utility Customers Bond
    City of Columbia Finance Dept
  • Missouri
    Electrical Service Bond
    KCP&L
  • Nevada
    Utility Deposit Bond
    Las Vegas Valley Water District
  • New Jersey
    Energy Consultant Bond
    New Jersey Treasurer
  • New Jersey
    Utility Deposit Bond
    New Jersey Board Of Public Utilities- Audit/Licens
  • New Mexico
    Utility Deposit Bond
    Public Service Company of New Mexico
  • New York
    Utility Deposit Bond
    NIAGARA MOHAWK POWER CORP dba NATIONAL GRID
  • New York
    Long Island Lighting Company Utility Deposit Bond
    Long Island Power Authority
  • New York
    (PSEGLI) Utility Payment Bond
    Public Service Enterprise Group Long Island (PSEGL
  • North Carolina
    Duke Energy
    Duke Energy
  • North Carolina
    Utility Deposit Bond
    Progress Energy Carolinas, Inc.
  • North Carolina
    Utility Guarantee Bond
    Kinston Public Services
  • North Carolina
    Union Power Cooperative Bond
    Union Power Cooperative
  • North Carolina
    Utility Deposit Bond
    Dominion North Carolina Power
  • North Carolina
    Utility Deposit Bond
    Duke Energy Florida, Inc
  • North Carolina
    In Lieu of Deposit Bond
    City of New Bern
  • North Carolina
    (Duke Energy) Electric Service Bond
    Duke Energy Progress
  • Ohio
    AEP In Lieu of Cash Deposit Bond
    American Electric Power
  • Oklahoma
    Utility Service
    City of Edmond
  • Oklahoma
    OG & E Utility Deposit Bond
    OG & E Electric Services
  • Other
    United Illuminating Co.
    United Illuminating Co.
  • Other
    Entergy Mississippi
    Entergy Mississippi, Inc.
  • Other
    Reading, PA
    UGI Utilities
  • Other
    Entergy Louisiana
    Entergy Louisiana, LLC
  • Other
    Utility Service Guaranty
    Knoxville Utilities Board
  • Other
    Indemnity Bond for Electric Service and/or Steam H
    Alabama Power Company
  • Other
    Indemnity Bond For Electric Service
    MISSISSIPPI POWER COMPANY
  • Other
    Utility Service Payment Bond
    Tucson Electric Power Company
  • Other
    Utility Service Guaranty, Greystone Power Corporat
    GreyStone Power Corporation
  • Other
    Utility Deposit Surety
    Duke Energy
  • Other
    Utility Deposit
    Arizona Public Service
  • Other
    Utility Deposit Bond
    Connecticut Natural Gas Corp
  • Other
    Utility Deposit Bond
    Salt River Project Agricultural Improvement
  • Other
    Utility Guarantee
    City of Statesville
  • Other
    Utility Deposit Bond
    Volunteer Energy Cooperative
  • Other
    Empire District Electric Utility
    Empire Electric
  • Other
    Utility Deposit Bond
    Coffman Oil Company
  • Other
    Utility Deposit
    EPB Electric Power
  • Other
    Utility Deposit Bond
    Progress Energy Florida
  • Other
    Utility Bond
    South Carolina Electric & Gas
  • Other
    Utility Deposit Bond
    Duke Energy Attn: Deposit Desk
  • Other
    Utility Deposit License
    Potomac Edison - Credit Dept
  • Other
    Utility Deposit
    Progress Energy Carolinas
  • Other
    Southwest Gas Corporation Utility Deposit Bond
    Southwest Gas Corporation
  • Other
    Florida Power & Light Company- Utility Bond
    Florida Power and Light Company
  • Other
    Southern Pine Electric Power Association: Bond For
    Southern Pine Electric Power Association
  • Other
    Utility Deposit
    Hawaiian Electric Company
  • Other
    Utility Deposit
    Southwest Gas Corporation
  • Other
    Utility Deposit
    Paducah Power Systems
  • Other
    Utility Deposit Bond
    Sevier County Electric System, TN
  • Other
    Utility Deposit Bond
    CenterPoint Energy, Inc.
  • Other
    Wholesale Agreement Bond
    Carter Energy
  • Other
    Utility Payment (Surety) Bond
    National Grid Credit & Collections Dept.
  • Other
    Utility Deposit Bond
    Pickwick Electric Cooperative
  • Other
    Utility Deposit Bond
    Jackson Electric Membership Corporation
  • Other
    Utility Services Bond
    ATMOS ENERGY
  • Other
    Entergy Arkansas Utility Deposit Bond
    Entergy Arkansas, Inc.
  • Pennsylvania
    Utility Deposit Bond (PECO Energy)
    PECO Energy
  • South Carolina
    Commissioners of Public Works
    Greenwood, S.C. CPW
  • South Carolina
    Utility Deposit
    SCE & G
  • South Carolina
    Utility Deposit Bond
    SCE&G
  • South Carolina
    Santee Cooper Deposit Bond
    Santee Cooper
  • Tennessee
    Utility Deposit Bond
    Clarksville Department of Electricity
  • Tennessee
    Electric Service Indemnity Bond (Electric Board of
    Electric Board of Chattanooga
  • Tennessee
    Murfreesboro Electric Utility Deposit Bond
    Murfreesboro Electric Department
  • Tennessee
    City of Cookeville Electric Dept. Utility Bond
    Cookeville Electric Dept.
  • Tennessee
    Memphis Light, Gas & Water Div Indemnity Bond for
    Memphis Light, Gas & Water Division
  • Tennessee
    Electric Service Furnished Bond (Davidson County,
    Nashville Electric Service
  • Tennessee
    Utility Bond (Metro Water Services)
    Metro Water Services
  • Texas
    Utility Deposit Bond
    City of Houston
  • Texas
    Guaranty Bond
    City of Dallas Water Department
  • Texas
    Atmos Energy Utility Deposit Bond
    Atmos Energy Corporation
  • Texas
    Texas-New Mexico Power Company Utility Bond
    Texas New Mexico Power Company
  • Texas
    Centerpoint Energy Utility Bond
    CenterPoint Energy
  • Texas
    Utility Payment Bond (Chillicothe Municipal)
    City of Chillicothe-Chillicothe Municipal Utilitie
  • Utah
    Utility Deposit Bond (In Lieu of Audit)
    Rocky Mountain Power
  • Virginia
    Electric Services Bond
    Dominion Virginia Power
  • Virginia
    Electric Services Bond
    Dominion North Carolina Power
  • Virginia
    Dept. of Public Utilities, City of Richmond Utilit
    Richmond Public Utilities
  • West Virginia
    In Lieu of Cash Deposit Bond (AEP)
    American Electric Power
  • Wisconsin
    UTILITY GUARANTEE
    WE Energies

Still Have Questions? Check Our FAQ Pages

What Our Clients Have To Say?

Kimberlee Ables
Quick response times and turn around for issuing bonds. Great customer service and very knowledgeable. We have used Lance Surety multiple times and have never been disappointed. Highly recommend them and Collette!
Andrew Poincot
Long story short, these guys cut through the B.S. and get the job done. Responsiveness, excellent! Communication, excellent! Respect for their industry partners, excellent! John, Collette, Ryan, you're all-stars! Thank you!
Margie Martinez
We decided for Lance Surety Bond's quote for 2 reasons; Price and Customer Service. Our Representative Ryan was just SUPERB!! [...] I highly recommend Lance Surety Bond for all your Bonding needs! I'll definitely come back for all of mine. :-) Thanks Ryan!