Utility Deposit Bond - Eversource Energy in Connecticut

Brief Summary

When Eversource asks a Connecticut business for a security deposit before turning on or continuing service, a utility deposit bond can keep that cash in your operating account. You pay a premium to a surety instead of handing Eversource a lump sum that sits idle for as long as the account is open. The bond names Eversource as the protected party and guarantees your utility bills get paid.

Eversource's Connecticut delivery service terms allow the company to require a security deposit from any customer or applicant for service, and non-residential applications may require a deposit at the company's option. Eversource sets the amount for each account. Where Eversource accepts a surety bond in place of cash, the bond guarantees payment of the account and Eversource is the obligee.

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How to Apply for a Utility Deposit Bond:

• Get the deposit amount Eversource is requesting for the account, in writing.
• Ask Eversource whether it accepts a surety bond for that account and whether it has its own bond form.
• Have the legal business name and account or service address exactly as they appear on the Eversource account.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the executed bond.
• Deliver the original bond to Eversource as it directs and confirm it has been applied to the account.

Detailed Information About the Connecticut Utility Deposit Bond:

Where the deposit comes from

The Connecticut Light and Power Company, doing business as Eversource Energy, publishes Terms and Conditions for Delivery Service that govern its Connecticut electric customers. Section 6F states that the company may require a customer or applicant for service to remit a security deposit. Section 5C adds that applications for non-residential service may, at the company's option, be in writing on company forms, and that a deposit may be required.

The terms do not publish a dollar figure. Eversource sets the amount for the specific account, which is why there is no single bond amount on this page. Your bond is written for whatever deposit Eversource asks you to secure.

How the bond works

A utility deposit bond is a promise from a surety company to Eversource. If the account holder fails to pay its utility bills, Eversource can make a claim on the bond up to its full amount, and the surety then looks to the account holder for repayment. The bond protects Eversource, not the customer.

Confirm before the bond is issued

Eversource decides whether it will take a surety bond instead of cash for your account, and it may require its own bond wording. Before you buy, get from Eversource in writing the deposit amount, the exact legal name of the Eversource company that will be the obligee, the account number, and whether it requires a specific bond form. Having those in hand avoids a bond that has to be reissued.

Eligibility and Requirements for a Connecticut Utility Deposit Bond:

• Bond amount equal to the deposit Eversource requires for the account.
• Obligee shown as the exact Eversource company serving the account. For Connecticut electric service that is The Connecticut Light and Power Company dba Eversource Energy.
• Principal name matching the name on the utility account.
• Credit review of the business and its owners, which shapes the premium.
• Bond kept in force for as long as Eversource requires security on the account.

Connecticut Utility Deposit Bond FAQs:

Official and Additional Resources for the Connecticut Utility Deposit Bond: