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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
A Tucson Electric Power deposit on a commercial account can reach two and a half times your highest expected monthly bill, and it can be required again for each meter. A utility deposit bond lets you meet that security requirement with a premium payment instead of handing TEP a large block of cash that sits on its books for two years or more.
Tucson Electric Power Company may require a deposit from any present or prospective customer to guarantee payment of its bills. Under TEP Rules and Regulations Sheet 903, Section 3.B, residential deposits cannot exceed two times the estimated average monthly bill and non-residential deposits cannot exceed two and one-half times the maximum estimated monthly bill. A utility deposit bond names Tucson Electric Power Company as obligee and guarantees payment in place of cash, in the amount TEP sets for the account.
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There is no single bond figure. The bond matches the deposit TEP calculates for your account, and Section 3.B of TEP's Rules and Regulations, Sheet 903, sets the ceilings. Residential deposits will not exceed two times the customer's estimated average monthly bill. Non-residential deposits will not exceed two and one-half times the customer's maximum estimated monthly bill. A separate deposit may be required for each meter installed, and TEP may review actual usage after service is connected and adjust the deposit up or down. The same caps appear in the Arizona Corporation Commission rule that governs all regulated electric utilities, Arizona Administrative Code R14-2-203(B).
TEP may require a deposit from any present or prospective customer. A new residential applicant is not required to post one if they had comparable service with TEP within the past two years and were not delinquent more than twice in the last twelve consecutive months, if they can produce a letter of credit or verification from the electric utility that last served them, or if TEP receives a deposit guarantee notification from an acceptable social or governmental agency. Sheet 903 states that a surety bond may be provided as security, and R14-2-203(B) allows a new applicant to provide a surety bond in lieu of a deposit.
Existing customers can be asked to establish or re-establish a deposit. For residential accounts that happens after two or more delinquent bills or a disconnection. For non-residential accounts it also applies when the customer's financial condition may jeopardize payment.
Residential deposits expire or are refunded or credited after twelve consecutive months of service without two delinquencies or a disconnection. Non-residential deposits are refunded after twenty-four consecutive months of service with no delinquency or disconnection in the most recent twelve month period, unless the customer's financial condition warrants an extension. Cash deposits held twelve months or longer earn interest at the one-year Treasury Constant Maturities rate.
Before the bond is issued, confirm with Tucson Electric Power the deposit amount on your account, the bond form it will accept and the address for delivering the original.
It equals the deposit TEP sets for your account. Under Sheet 903 Section 3.B, residential deposits cannot exceed two times the estimated average monthly bill and non-residential deposits cannot exceed two and one-half times the maximum estimated monthly bill. A separate deposit may be required for each meter.
Yes. TEP may review your usage after service is connected and adjust the deposit based on actual usage. If the deposit goes up, the bond amount needs to follow.
Non-residential deposits are refunded after twenty-four consecutive months of service with no delinquency or disconnection in the most recent twelve month period, unless TEP finds the customer's financial condition warrants an extension.
Yes. TEP may require a deposit to be established or re-established after two or more delinquent bills or a disconnection for non-payment, and for non-residential customers when their financial condition may jeopardize payment.
The surety prices the bond from the deposit amount TEP requires and an underwriting review of the account holder, mainly credit history and, on larger commercial accounts, financial statements. You see the quote before you pay.
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