Utility Deposit Bond - City of Lakeland, FL in Florida

Brief Summary

Yes, the City of Lakeland accepts a surety bond in place of a cash deposit on a commercial utility account. The bond covers one times the average monthly bill at the location, so a business keeps that cash for operations instead of leaving it sitting with the utility for as long as service runs.

Lakeland Electric, the City of Lakeland's utility, accepts a surety bond from a company authorized to do business in Florida as the security deposit on a commercial account. The deposit equals one times the average bill at the commercial establishment, and the bond must stay in effect for as long as service is provided. If the city recalculates the deposit upward, a bond holder must provide an amended bond within 90 days.

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How to Apply for a Utility Deposit Bond:

• Get the deposit amount from Lakeland Electric, based on one times the average bill at the location.
• Request the current surety bond form from Lakeland Electric.
• Provide the business name, service address and account details to the surety.
• Pay the premium and receive the executed bond from a surety authorized in Florida.
• Deliver the bond to Lakeland Electric before or at the start of service.
• Provide an amended bond within 90 days if the city recalculates the deposit upward.

Detailed Information About the Florida Utility Deposit Bond:

A bond is accepted for commercial accounts

The City of Lakeland lets commercial customers post the utility security deposit as cash, check, credit or debit card, a surety bond, or an irrevocable letter of credit. The surety bond has to come from a company authorized to do business in Florida. A letter of credit must come from a bank with a branch in Lakeland Electric's service territory. Either instrument must remain in effect for all the time utility services are provided.

How much

The commercial deposit is an amount equal to one times the average bill at the commercial establishment. Lakeland Electric's rate tariff lists the same figure for commercial service secured by cash, bond or irrevocable letter of credit, and states that additional deposits may be required at Lakeland Electric's discretion but not more than two months' billing.

When the amount goes up

The city continuously monitors payment history and creditworthiness on commercial accounts. A commercial account that was exempt and stops meeting the criteria must post the full deposit. Disconnection for nonpayment, one dishonored check, more than two delinquent payments, meter tampering or energy diversion count as unacceptable payment history. When a higher deposit is required, the customer is notified by mail. Customers using a surety bond or letter of credit must provide an amended guarantee within 90 days of the recalculation date. Plan for that rider when bills grow.

When service ends

A surety bond or letter of credit posted in place of a cash deposit is canceled once final charges are paid. Cash deposits are refunded instead.

Premium

The surety prices the bond from the business's credit and the deposit amount. Confirm the current bond form with Lakeland Electric before the bond is issued.

Eligibility and Requirements for a Florida Utility Deposit Bond:

• Commercial utility account with the City of Lakeland.
• Bond amount equal to one times the average monthly bill.
• Surety company authorized to do business in Florida.
• Bond kept in force for as long as utility service is provided.
• Acceptable payment history to avoid deposit increases.

Florida Utility Deposit Bond FAQs:

Official and Additional Resources for the Florida Utility Deposit Bond: