Utility Deposit Bond - Highline Electric Association in Colorado

Brief Summary

Highline Electric Association can ask a new or credit-impaired member for a deposit of up to 90 days of estimated billing before it turns the power on, and irrigation accounts can be asked for a full month of peak usage before the pivot runs. A surety bond posted in place of that cash, where Highline accepts it, keeps your working capital in the operation instead of sitting with the co-op.

Highline Electric Association, the member-owned electric cooperative headquartered in Holyoke, Colorado, can require a deposit as security for payment of bills from members whose credit is not established or has become impaired. The utility deposit bond names Highline Electric Association as obligee and guarantees the member's electric bills will be paid, in place of the cash deposit set by Article IV of Highline's Rules and Regulations.

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How to Apply for a Utility Deposit Bond:

• Ask Highline Electric Association for the deposit amount it is requiring on your account and whether it will accept a surety bond in place of cash.
• Have the member name and service address exactly as they appear on the Highline service application.
• Owner or applicant name, address and Social Security number for the surety's credit review.
• Complete the bond application, pay the premium and receive the signed bond with Highline Electric Association named as obligee.
• Deliver the bond to Highline at 1300 S Interocean, Holyoke, CO 80734, or to the Sterling or Ovid office, before service is energized.
• Pay any prior unpaid Highline balance separately, since the rules allow Highline to require it before connection.

Detailed Information About the Colorado Utility Deposit Bond:

How big the deposit can be

Highline's Rules, Regulations and Extension Policy, last revised March 19, 2026, set two different deposit rules in Article IV.

For every account other than irrigation and Prepay, Highline may require a deposit of no more than an estimated 90 days of billing when an applicant's credit is not established, when a member's credit has become impaired, or when Highline deems it necessary, for example during a bankruptcy or foreclosure.

Irrigation accounts follow a modified rule because of their seasonal usage. A member in bankruptcy or foreclosure, with a history of late payments, or otherwise flagged by Highline can be asked, before the irrigation service is energized, for a deposit equal to the highest single month's usage in the most recent normal operating year. That deposit is held until the end of the irrigation season. The rules also allow a written guarantee of the year's electric bill from a reputable banking institution, or a request to the Board of Directors for special consideration.

Who does not have to post anything

Members on Highline's Prepay Service have the deposit waived. Prepay does not build credit with Highline, though, so a member who later moves to a traditional billed account can be asked for a security deposit at that point.

What the bond guarantees

The bond stands in for the cash deposit. If the member leaves unpaid final bills, Highline can recover the unpaid amount from the surety up to the bond amount, and the member then owes the surety. The bond amount should match the deposit Highline sets for your account, so ask Highline for the figure first. Highline's rules spell out the cash deposit and bank guarantee options but do not set out a bond form, so confirm with the member services office in Holyoke at 970-854-2236 that it will accept a surety bond for your account and in what form before the bond is issued.

Getting the deposit back

Highline reviews deposits about monthly. After 24 consecutive months with no more than one late payment, a held deposit is credited to the member's account. A deposit is also refunded when service ends and all charges are paid. Members in bankruptcy or foreclosure normally have their deposit held until the proceedings are withdrawn.

Old balances come first

If you owe Highline an unpaid bill from earlier service, Highline may require that bill paid in full plus a deposit before it connects you. A bond does not take the place of paying the old balance.

Eligibility and Requirements for a Colorado Utility Deposit Bond:

• Bond amount equal to the deposit Highline sets, which for standard accounts cannot exceed an estimated 90 days of billing.
• For irrigation services, an amount tied to the highest one month's usage in the most recent normal operating year.
• Highline Electric Association named as obligee.
• Bond in place before the service is energized.
• Owner credit review by the surety. Credit drives the premium rate.

Colorado Utility Deposit Bond FAQs:

Official and Additional Resources for the Colorado Utility Deposit Bond: