Surety Bond Encyclopedia

Utility Deposit Bond - Birmingham Water Works in Alabama

Brief Summary

The Birmingham Water Works deposit is now set by Central Alabama Water, the same utility under the name it adopted in 2025, and a commercial deposit equals three times average consumption plus the base service charge for the meter size. A utility deposit bond lets a business cover that figure with an annual premium instead of cash held by the utility. The bond names the water utility as obligee and goes in with the service connection application.

Birmingham Water Works, which has done business as Central Alabama Water since June 2025, requires a deposit before water service starts. Commercial customers post a deposit equal to average consumption times three plus the base service charge for the meter size. Residential deposits are a flat $120 with sewer or $60 without, and a portable fire hydrant meter carries a $2,500 deposit. The utility deposit bond on this page stands in for the commercial deposit. Its amount is whatever the utility calculates for the account, not a fixed figure.

We can help with all Alabama bonds!

How to Apply for a Utility Deposit Bond:

Call Central Alabama Water customer service and get the deposit amount on your commercial account. The formula is average consumption times three plus the base service charge for the meter size.
Confirm with the utility that it will accept a surety bond on your account and the exact obligee name it wants, since the utility now does business as Central Alabama Water.
Apply for the bond in the exact deposit amount, using the legal name of the business as it appears on the application for service connection.
Provide the owner or principal's name, address and Social Security number for the surety's credit review.
Pay the premium and receive the executed bond.
Deliver the bond to the utility with the service connection application and the $43 establishment fee.

Detailed Information About the Alabama Utility Deposit Bond:

The name changed, the deposit did not

The Alabama Legislature passed Senate Bill 330, signed May 7, 2025 as Act 2025-297, and on June 24, 2025 the board voted to do business as Central Alabama Water instead of Birmingham Water Works. The old bwwb.org address now redirects to caw-al.gov. It is the same utility, the largest water system in Alabama, serving a five county area from its office at 3600 1st Avenue North in Birmingham. A bond written for an account here should name the utility exactly as its customer service office tells you to, since both names are still in circulation.

How the deposit is figured

The 2026 Central Alabama Water rate booklet sets deposits this way. A residential customer with sewer pays $120. A residential customer without sewer pays $60. A commercial customer pays average consumption times three, plus the base service charge for the meter size. A portable fire hydrant meter, the kind a contractor rents to fill a tank or run a construction site, carries a $2,500 deposit.

The commercial formula is the one that makes a bond worthwhile. A restaurant or car wash with a large meter and heavy use can see a deposit in the thousands. The surety bond covers that amount, and if the account closes with an unpaid balance the utility can collect from the surety up to the bond amount. You pay the surety an annual premium set after a credit review instead of tying up the cash.

Get the figure before you order the bond

There is no published bond amount. Ask customer service at (205) 244-4000 for the deposit calculated on your account and for confirmation that it will accept a surety bond in place of cash for that account. The rate booklet lists the deposit amounts but not the forms of payment, so get that answer in writing before the surety executes the bond. Then order the bond for the exact deposit figure.

Fees the bond does not replace

A new account also pays a $43 establishment fee. A new building or development pays a system development fee and a connection fee on top of that, for example $1,000 plus $768 for a one inch tap. Reconnection after a cutoff is $63, or $101 for meters over two inches. Those are paid in cash and are separate from the deposit.

Eligibility and Requirements for a Alabama Utility Deposit Bond:

Bond amount equal to the deposit the utility calculates, not a fixed figure.
The water utility named as obligee using the name its customer service office specifies.
Business name on the bond matching the service application exactly.
A surety licensed to write business in Alabama.
Credit review of the owner or principal. Credit shapes the premium rate rather than eligibility for most applicants.
The bond remains in force while the account is open, so expect annual renewal premiums until the utility releases it.

Alabama Utility Deposit Bond FAQs:

Is Birmingham Water Works still the right name?

The utility has done business as Central Alabama Water since June 24, 2025, following Act 2025-297. It is the same water system. Ask customer service which name to put on the bond before it is executed.

How much is the bond?

It equals your deposit. For a commercial account the 2026 rate booklet sets that at average consumption times three plus the base service charge for your meter size. Residential deposits are a flat $120 with sewer or $60 without, and a portable fire hydrant meter carries a $2,500 deposit.

Will the utility accept a bond instead of cash?

The rate booklet lists deposit amounts but does not spell out the forms of payment. Confirm with customer service at (205) 244-4000 that a surety bond is acceptable on your account before ordering it.

Does the bond cover the establishment fee or the tap fees?

No. The $43 establishment fee, the system development fee and the connection fee are paid in cash. The bond replaces only the deposit.

What happens when I close the account?

The utility applies any deposit to the final bill and refunds the rest. With a bond there is nothing to refund. The utility releases the bond once the account is settled and the surety stops billing renewal premium.