Utility Deposit Bond - Delmarva Power in District of Columbia

Brief Summary

Delmarva Power does not serve the District of Columbia. Its service area is Delaware and Maryland, and the deposit rules that apply to you come from Delmarva's tariff in the state where your account sits. Know the cap before you post anything: in the Delaware gas tariff, a deposit can be no more than two twelfths of your estimated annual charges.

Delmarva Power may require a deposit from a new applicant or an existing customer as security for future bills. Under its Delaware gas tariff, P.S.C. Del. No. 5, the deposit cannot exceed two twelfths of the estimated annual charges, no deposit is required if the amount would be under $50, and it is refunded after one year for residential accounts and four years for non-residential accounts once satisfactory credit is established.

We can help with all District of Columbia bonds!

How to Apply for an Utility Deposit Bond:

• Confirm whether your account is in Delaware or Maryland, and electric or gas.
• Ask Delmarva Power for the deposit amount it requires on the account.
• Confirm Delmarva will accept a surety bond in place of cash, and get its bond form.
• Apply for the bond in the amount Delmarva states and review the quoted premium.
• Pay the premium and deliver the executed bond to Delmarva Power.

Detailed Information About the District of Columbia Utility Deposit Bond:

Start with the right state

This listing sits under the District of Columbia, but Delmarva Power serves customers in Delaware and Maryland. Each state's tariff, approved by that state's public service commission, sets the deposit terms. Electric and gas service carry separate tariffs, so read the one that matches your account.

What the Delaware gas tariff says

Section III of Delmarva's Delaware gas tariff, P.S.C. Del. No. 5 (Leaf No. 8, effective February 1, 2021 under Order No. 9718), lets the company require a cash deposit from an applicant or an existing customer for each account.

• Maximum: two twelfths of the estimated annual charges.
• No deposit is required if the amount is under $50.
• The deposit can be deferred to the first month's bill or paid in installments over three consecutive monthly bills.
• Simple interest is credited annually on the January bill, tied to one year Treasury yields, but only if the deposit is held longer than ninety days.
• Refund comes after one year for residential deposits and after four years for non-residential deposits, once the last twelve consecutive bills were paid without an unpaid prior balance. Commercial customers must also show no detrimental credit information in the prior twelve months.

Where a bond fits

The tariff language describes a cash deposit. A surety bond can free that cash for a business with a large estimated annual bill, but only if Delmarva agrees to take a bond in place of cash for your account. Ask Delmarva to confirm the amount it wants secured, whether it accepts a surety bond, and its required bond form before the bond is issued.

What the bond guarantees

The bond backs the customer's promise to pay Delmarva Power for service. If bills go unpaid, Delmarva can claim against the bond up to its amount, and the surety then recovers what it paid from the customer.

Eligibility and Requirements for a District of Columbia Utility Deposit Bond:

• Delmarva Power named as obligee on the form it approves.
• Bond amount matching the deposit Delmarva sets for the account.
• Account holder name on the bond matching the Delmarva account exactly.
• Owner or business credit review, which mainly shapes the premium.

District of Columbia Utility Deposit Bond FAQs:

Official and Additional Resources for the District of Columbia Utility Deposit Bond: