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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
Colorado Springs Utilities requires a deposit from nonresidential customers unless a waiver applies, and that deposit equals four months of your average bill held for at least three years. The utility's own rules accept an approved surety bond in place of cash, so you can open service without locking up that money.
Colorado Springs Utilities accepts an approved surety bond in place of a cash deposit under Section II.B of its Utilities Rules and Regulations. Nonresidential accounts owe a deposit unless a waiver applies, and the amount is the average bill for the premises over the previous 12 billing periods multiplied by four. Business deposits are held for at least 36 consecutive billing periods. Ask Utilities for its approved bond form before the bond is issued.
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Under Section II.B.3 of the Colorado Springs Utilities Rules and Regulations, Utilities requires a deposit from customers with nonresidential accounts unless one of the listed waivers applies. Residential customers are treated differently. They owe a deposit only if they have delinquent payments with Utilities within the previous 12 consecutive billing periods, or after a bankruptcy filing.
The rules say the deposit can be cash, an approved surety bond or an irrevocable letter of credit. A surety bond keeps the cash in your business.
The deposit is the average bill for the premises over the previous 12 billing periods, multiplied by four. If there is not enough usage history, Utilities estimates the average bill from a similar premises or from actual daily usage and multiplies that by four. Utilities may ask for an additional deposit if the one on file falls short of the calculated amount, so a bond may need to be increased if your usage grows.
A nonresidential deposit is waived for an existing customer opening another business account if that customer has kept nonresidential service in the same name for the previous 12 consecutive billing periods with no delinquency. It may be waived for an applicant with clean residential service in the same name for the last 12 billing periods if business usage will not be substantially higher, or if the applicant meets Utilities' credit policy. A deposit may also be waived for customers enrolled in AutoPay who keep paying on time, except for accounts with bankruptcy filings, assignments or judgments, and when collecting it would cost more than the deposit itself.
Nonresidential deposits are held for at least 36 consecutive billing periods and refunded in full if all bills were paid promptly. Residential deposits are refunded after 12 consecutive billing periods of prompt payment. Utilities may also require a deposit from a business account that becomes delinquent and receives a first notice of discontinuance.
The bond guarantees payment of your utility bills. A deposit does not excuse current charges as they come due, and Utilities applies it to your debt only after service ends or as the Bankruptcy Code allows. The surety pays Utilities if you leave unpaid bills, and then looks to you for repayment. The premium is a percentage of the bond amount based mainly on your credit.
Four times the average bill for the premises, based on the previous 12 billing periods. If there is no usage history, Utilities estimates the average bill and multiplies it by four.
Possibly. Utilities waives it for existing business customers with 12 clean billing periods under the same name, and may waive it based on clean residential history, its credit policy or on-time AutoPay enrollment.
Nonresidential deposits are held for at least 36 consecutive billing periods and released if all bills were paid promptly. Residential deposits are refunded after 12 consecutive prompt billing periods.
Yes. If the deposit on file no longer covers the calculated amount, Utilities may require an additional deposit, which may mean increasing the bond.
Yes. Cash deposits accrue simple interest at the customer deposit rate published by the Colorado Public Utilities Commission for the current year, credited at least annually.
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