Utility Deposit Bond - City of Riverside, CA in California

Brief Summary

A commercial account with Riverside Public Utilities that cannot show a clean payment history owes a deposit of twice its estimated average monthly bill, and that figure is due when service is requested. For a business with heavy electric or water use, a surety bond in place of that cash can free up a meaningful amount of working capital at the moment it is needed most.

Riverside Public Utilities, a department of the City of Riverside, requires a deposit from any customer who cannot establish credit under Electric or Water Rule 3. For non-residential service the deposit equals twice the estimated average monthly bill, with a minimum of $211 for electric and $42 for water under the schedules effective July 1, 2026. Rule 3 allows credit to be established by a monetary guarantee such as a cash deposit, and this bond is a guarantee of payment posted in place of that cash.

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How to Apply for a Utility Deposit Bond:

• Apply for service with Riverside Public Utilities and provide acceptable identification.
• Pay any prior delinquent City of Riverside utility bills you are responsible for.
• Ask RPU for the deposit amount calculated for your account.
• Confirm with RPU that a surety bond will be accepted in place of cash and get the required form.
• Obtain a bond for that amount naming the City of Riverside as obligee.
• Deliver the bond within the 14 day window before the deposit becomes delinquent.

Detailed Information About the California Utility Deposit Bond:

Who owes a deposit

Under Electric Rule 3, a new applicant establishes credit in one of three ways. The first is a year or more as a Riverside utility customer within the past two years with bills paid on time, in the same name. The second is a good credit reference from another electric utility covering a year or more in the past two years. The third is a monetary guarantee, such as a cash deposit, under Rule 4. A residential payment record does not count for a business account, and a business record does not count for a residential one. Water service follows the same rule structure.

How much

Electric Rule 4 sets the deposit for non-residential service at twice the estimated average monthly bill, never less than the residential minimum. The electric fee schedule effective July 1, 2026 sets that minimum at $211. The water fee schedule sets a $42 minimum and the same twice the average bill formula for non-residential accounts. If service is shut off for any reason other than a customer request, or a discontinuance notice has gone out, the utility can require a deposit of up to three times the estimated average monthly bill.

Timing and release

Deposits are due when you apply for service and become delinquent 14 days later. After 12 consecutive months of good payment, the utility applies the deposit to the account. A deposit cannot be used to pay a past due bill to stop a shutoff.

Using a bond

The bond guarantees Riverside Public Utilities that the account holder will pay its utility bills. If the customer defaults, the city can claim against the bond for the unpaid charges up to the bond amount, and the customer must repay the surety. The bond amount should match the deposit RPU calculates for your account. Confirm with Riverside Public Utilities Customer Service that it will accept a surety bond for your account and get its required form and filing steps before the bond is issued.

Eligibility and Requirements for a California Utility Deposit Bond:

• Surety company authorized to write bonds in California.
• Bond amount equal to the deposit RPU sets, twice the estimated average monthly bill for non-residential service.
• City of Riverside, Public Utilities Department, as obligee.
• Account holder name on the bond matching the utility service application.
• Credit and financial review of the business, which sets the premium.

California Utility Deposit Bond FAQs:

Official and Additional Resources for the California Utility Deposit Bond: