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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
When SoCalGas asks a business for security before it will open or keep a gas account, a surety bond is one of the forms its credit group works with. The bond stands in for the cash deposit, so your working capital stays in the business and you pay a premium instead.
Southern California Gas Company lists surety bonds, letters of credit and parental guarantees among the collateral options its credit group offers customers. This bond is for commercial and industrial accounts. Residential customers are not asked for establishment or reestablishment deposits under CPUC Decision 20-06-003. SoCalGas sets the amount, so confirm it and the bond form with SoCalGas before the bond is issued.
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Many people searching for a gas deposit bond are homeowners or renters, and they do not need one. In its 2023 rate case testimony, SoCalGas notes that residential deposit letters are no longer applicable because CPUC Decision 20-06-003 bars the large California utilities from requiring establishment of service or reestablishment of service deposits from residential customers. The bond on this page is for commercial and industrial gas accounts where SoCalGas asks for credit security.
SoCalGas's Credit and Collections group establishes credit for customers and works with several credit instruments: letters of credit, parental guarantees and surety bonds. A business that would otherwise post cash can ask to provide a surety bond instead. The bond promises SoCalGas that the gas bills on the account will be paid. If they are not and SoCalGas makes a valid claim, the surety pays up to the bond amount and the business repays the surety.
SoCalGas sets the security amount for each account based on the account's expected usage and credit review. There is no single published figure. Ask your SoCalGas account or credit contact for the amount and whether a SoCalGas bond form must be used, and have the bond written for exactly that amount in the account holder's legal name.
No. CPUC Decision 20-06-003 prohibits the large California utilities from requiring establishment or reestablishment of service deposits from residential customers, so this bond is for business accounts.
SoCalGas's credit group works with surety bonds, letters of credit and parental guarantees as collateral options. Confirm with your SoCalGas credit contact that a bond will be accepted for your account and in what amount.
The premium is based on the bond amount and the financial strength and credit of the business and its owners. The quote reflects your actual file rather than a fixed rate.
SoCalGas can make a claim on the bond. The surety pays valid claims up to the bond amount and then collects that money back from the business.
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