Utility Deposit (Water, Gas and Electric combined) Bond - Norwich Public Utilities in Connecticut

Brief Summary

Norwich Public Utilities sizes a commercial deposit at three times your average estimated monthly bill for water, gas and electric combined. For a busy building that is real money held until you close the account. A surety bond satisfies the same deposit for a premium and keeps that cash working in your business.

Norwich Public Utilities requires a security deposit from commercial customers starting gas, electric, water or sewer service, equal to three times the average estimated bill over a twelve month period of occupied use. NPU accepts a surety bond from a valid insurance provider in place of a cash deposit, but the bond must be kept in full force for the entire life of the account. If it lapses, the bond option is lost and service may be terminated.

We can help with all Connecticut bonds!

How to Apply for a Utility Deposit (Water, Gas and Electric combined) Bond:

• Get the deposit amount from Norwich Public Utilities for your service address.
• Ask NPU whether your property qualifies for the 50 percent Enterprise Zone reduction before setting the bond amount.
• Provide the account holder's legal name and the service address exactly as on the NPU account.
• Complete the bond application and review the quoted premium.
• Deliver the executed bond to NPU before service is started.
• Renew the bond on time so it stays in full force for the life of the account.

Detailed Information About the Connecticut Utility Deposit (Water, Gas and Electric combined) Bond:

The bond has to last as long as the account

This is the detail most customers miss. NPU's commercial guidelines accept a surety bond from a valid insurance provider, but only if the customer keeps it in full force for the duration of the account. It is not a one time filing. If the bond lapses, the customer loses the surety bond option and NPU may terminate service. Renew it on time every term.

How the deposit amount is set

Under the NPU Security Deposit Guidelines for Commercial Accounts, dated 8/18/25, the deposit equals three times the average estimated bill over a twelve month period of occupied use. NPU estimates the bill from past usage at the same property or at a similar Norwich business. Your bond amount should match the deposit figure NPU gives you.

Ways to lower or avoid the deposit

Commercial and multi family properties located in the Norwich Enterprise Zone may receive a 50 percent reduction, subject to NPU confirmation. That reduction ends if services are terminated for nonpayment. For blanket deposits on multi family properties, NPU will consider a written or emailed request for a reduction or waiver when the customer has two years of good payment history, the account is personally guaranteed by an individual or corporation rather than an LLC, and the customer is enrolled in AutoPay.

Residential customers

The NPU Residential Security Deposit Guidelines, dated 9/8/25, list personal check, certified bank check and credit card as the alternatives to a cash deposit. Surety bonds appear in the commercial guidelines. Residential customers with good payment history are not charged a deposit at all.

Cash deposit versus bond

A cash deposit earns interest at 0.125 percent per month and is returned, with interest, at business closure or relocation once all charges are paid. A bond keeps the full deposit amount out of NPU's hands from day one in exchange for the premium.

Eligibility and Requirements for a Connecticut Utility Deposit (Water, Gas and Electric combined) Bond:

• Norwich Public Utilities named as obligee.
• Bond amount equal to the NPU deposit, which is three times the average estimated monthly bill.
• Bond issued by a valid insurance provider.
• Bond kept in full force for the duration of the account.
• Principal name matching the NPU account holder.

Connecticut Utility Deposit (Water, Gas and Electric combined) Bond FAQs:

Official and Additional Resources for the Connecticut Utility Deposit (Water, Gas and Electric combined) Bond: