Electric Utility Deposit Bond - Tampa Electric Company (TECO), FL in Florida
Table of Contents
Brief Summary
Tampa Electric will not waive the security deposit for a business account, but it will take a surety bond in place of cash. For a location with large monthly bills, that keeps two months of electric charges in your operating account instead of sitting with the utility for as long as the account is open.
Every business and industrial customer of Tampa Electric must post a security deposit for as long as it receives service, and the deposit cannot be waived. The amount is generally twice the average monthly bill for the location, based on the prior 12 months. A surety bond on Tampa Electric's own Surety Bond Form is an accepted alternative to cash, as is an irrevocable letter of credit.
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How to Apply for an Electric Utility Deposit Bond:
- Get the required deposit amount from Tampa Electric when you start service.
- Have the legal business name and service address exactly as they appear on the Tampa Electric account.
- Complete the bond application and review the quoted premium.
- Pay the premium and have the surety execute Tampa Electric's Surety Bond Form for the deposit amount.
- Mail the completed form to Tampa Electric, C/O Credit and Collections, Commercial Credit Advisors, 605 Lake Kathy Dr., Brandon, FL 33510.
Detailed Information About the Florida Electric Utility Deposit Bond:
The deposit is mandatory for business accounts
Many owners assume a good credit history or a long relationship with the utility gets them out of the deposit. For commercial and industrial service it does not. Tampa Electric's tariff, approved by the Florida Public Service Commission, requires a security deposit or an approved alternative from all business and industrial customers for the life of the account, and the company states plainly that the deposit cannot be waived.
Florida Administrative Code Rule 25-6.097 lets an applicant establish credit with an irrevocable bank letter of credit or a surety bond instead of cash, and leaves the method for sizing the deposit to each utility's tariff.
How much the bond has to be
Tampa Electric generally sets the deposit at twice the average monthly electric bill for the service location, using the previous 12 months of usage. The company gives you the figure when you start service. The bond amount should match that figure exactly.
The trade-off with a bond
A cash deposit earns simple interest at 2% a year, rising to 3% after 23 months of continuous service. A surety bond or letter of credit earns no interest. In exchange, your cash stays in the business and you pay an annual premium instead.
The deposit can go up
Tampa Electric reviews the deposit once the account has been open a year and may adjust it toward twice the average monthly bill for the prior 12 months. Payment history, past-due balances and length of service also factor in. If more security is needed you get notice before it is billed, so a growing location may need a bond rider increasing the amount.
Filing the bond
Complete Tampa Electric's Surety Bond Form and mail it to Tampa Electric, C/O Credit and Collections, Commercial Credit Advisors, 605 Lake Kathy Dr., Brandon, FL 33510. There is no in-person customer service at that address.
Eligibility and Requirements for a Florida Electric Utility Deposit Bond:
- Tampa Electric Company named as obligee on the company's own Surety Bond Form.
- Bond amount equal to the deposit Tampa Electric sets, generally twice the average monthly bill for the location.
- Applies to business and industrial accounts for as long as service continues.
- Bond kept in force for the life of the account, with an increase if Tampa Electric raises the deposit after review.
- Owner or business credit review by the surety, which shapes the premium.
Florida Electric Utility Deposit Bond FAQs:
No. Tampa Electric states that business and industrial customers must provide a deposit or an approved alternative for as long as they receive service, and that the deposit cannot be waived. A surety bond is one of the approved alternatives.
It is generally twice the average monthly electric bill for the service location, based on the previous 12 months of usage. Tampa Electric provides the amount when you start service.
No. Cash deposits earn 2% simple interest a year, rising to 3% after 23 months of continuous service. Surety bonds and letters of credit earn no interest.
Yes. Tampa Electric reviews the deposit after the account has been open a year and may adjust it toward twice the average monthly bill for the prior 12 months. If it increases, you will need a larger bond or an additional deposit.
The surety prices the bond based on the bond amount and the credit and financial strength of the business and its owners. You pay the premium yearly while the bond stays in force.
