Utility Deposit Bond - Southern California Edison Company in California

Brief Summary

If SCE has asked your business for a security deposit to start or keep electric service, you do not have to hand over cash. SCE accepts a surety bond in place of the deposit, so the money stays in your operating account and you pay a yearly premium instead.

Southern California Edison lets non-domestic (business) customers satisfy a security deposit with a surety bond instead of cash. SCE sets the deposit amount for the account, and the bond is written for that amount with SCE as obligee. Confirm the amount and SCE's bond form with SCE before the bond is issued.

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How to Apply for a Utility Deposit Bond:

• Get the deposit amount, account name and account number from SCE.
• Ask SCE whether it requires its own bond form and where the bond should be sent.
• Complete the bond application with the business's legal name exactly as it appears on the SCE account.
• Provide owner details for the credit review and review the quoted premium.
• Pay the premium and receive the executed bond.
• Deliver the bond to SCE and confirm it has been applied to the account.

Detailed Information About the California Utility Deposit Bond:

Who this bond is for

SCE can require a security deposit when a business opens a new account or when an existing account has to reestablish credit. Non-domestic customers have three alternatives to paying that deposit in cash: a surety bond, an irrevocable letter of credit, or a certificate of deposit. This page covers the surety bond option. Residential customers are not offered these alternatives on SCE's page, so this is a business account product.

How the amount is set

There is no single published bond figure. SCE decides the deposit for each account based on the service and expected billing, and the bond simply matches that number. Get the exact amount, the account name and the account number from SCE before you apply, because the bond has to line up with all three.

What the bond guarantees

The bond promises SCE that your electric bills will be paid. If the account goes unpaid and SCE makes a valid claim, the surety pays SCE up to the bond amount and then looks to your business to repay it. The bond does not lower your bills or change your rate plan. It only replaces the cash that would otherwise sit with SCE.

Before you buy

Call SCE business customer service at 1-800-655-4555 to confirm the amount and ask whether SCE requires its own bond form. Send the executed bond to the address SCE gives you and keep it in force for as long as SCE requires security on the account.

Eligibility and Requirements for a California Utility Deposit Bond:

• Non-domestic (business) electric account with SCE.
• Southern California Edison Company named as obligee.
• Bond amount equal to the deposit SCE requires.
• Account holder name on the bond matching the SCE account exactly.
• Owner or business credit review, which drives the premium rate.

California Utility Deposit Bond FAQs:

Official and Additional Resources for the California Utility Deposit Bond: