Utility Deposit Bond - Wallingford Electric in Connecticut

Brief Summary

Wallingford Electric Division sets its customer deposit at whatever amount it considers adequate, and it can raise that figure as your monthly bills grow. For a business opening a high load account, that can tie up real cash. A utility deposit bond lets you keep that money working, as long as the Division agrees in writing to take the bond in place of the cash deposit.

The Town of Wallingford Electric Division, a municipal utility under the Town's Public Utilities Commission, may require a deposit from new customers as security for payment of electric bills. A utility deposit bond names the Division as obligee and guarantees the customer will pay what it owes. The Division's own forms describe a cash deposit, so confirm in advance that a bond will be accepted, along with the amount and the form.

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How to Apply for a Utility Deposit Bond:

• Open the account using the Division's Contract for Service form, residential or non-residential.
• Get the required deposit amount from Wallingford Electric Customer Service in writing.
• Confirm the Division will accept a surety bond in place of the cash deposit, and on which form.
• Apply for the bond in the exact customer name on the electric account.
• Deliver the executed bond to the Electric Division at 100 John Street, Wallingford.
• Keep the bond in force for as long as the Division requires security on the account.

Detailed Information About the Connecticut Utility Deposit Bond:

Ask before you buy

The Division's Contract for Service forms, both residential and non-residential, describe the security as a cash deposit in an amount the Division deems adequate for its protection. The forms also carry fields for the deposit amount required, whether the deposit is waived, and the reason for a waiver. That tells you two things. The amount is set case by case, and a waiver is possible. Before ordering a bond, ask Customer Service for the required amount in writing and confirm that a surety bond will be accepted in place of cash, on what form, and naming whom.

Who the obligee is

Wallingford Electric Division is part of the Town of Wallingford's municipal utilities, and its deposit policy was adopted by the Wallingford Public Utilities Commission on April 20, 1993. The Division publishes separate E-1 Customer Deposit Policies for residential customers and for commercial and industrial customers on its Policies and Forms page.

How the deposit works

Under the non-residential contract, the deposit can increase as the monthly bills increase. It is returned when service is discontinued, less any amount still owed. Residential deposits, where applicable, are held for at least 12 months. Cash deposits earn interest at a rate the Public Utilities Commission adopts each year. For July 1, 2026 through June 30, 2027 that rate is 3.732 percent.

What the bond does

A deposit bond takes the place of cash security. If the customer leaves unpaid bills, the Division can claim against the bond up to its amount, and the surety then looks to the customer for repayment. The bond does not reduce or delay the customer's bills. Weigh the annual premium against the interest a cash deposit would earn, especially on a large commercial deposit.

Eligibility and Requirements for a Connecticut Utility Deposit Bond:

• Town of Wallingford Electric Division named as obligee, unless the Division specifies different wording.
• Bond amount matching the deposit the Division sets for the account.
• Customer name on the bond matching the account exactly.
• A surety authorized to write bonds in Connecticut.
• Owner or company credit review by the surety.

Connecticut Utility Deposit Bond FAQs:

Official and Additional Resources for the Connecticut Utility Deposit Bond: