Utility Guarantee Bond - Withlacoochee River Electric Cooperative, Inc., FL in Florida
Table of Contents
Brief Summary
A business opening a General Service account with Withlacoochee River Electric Cooperative can face a deposit equal to two months of estimated billing. For a large load that is real working capital sitting idle. An utility guarantee bond, where WREC agrees to take one, lets you keep that cash in the business and pay a premium instead.
Withlacoochee River Electric Cooperative, Inc. (WREC) requires a security deposit before connecting service. Its published member rules set the General Service deposit at two months' estimated billing, never less than $300, and the standard residential deposit at $300. The Utility Guarantee bond guarantees WREC that the member's electric bills will be paid, in place of some or all of that cash deposit. WREC's published rules do not describe a bond option, so get WREC's agreement and its required form before the bond is issued.
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How to Apply for an Utility Guarantee Bond:
- Ask WREC whether it will accept a surety bond for your account in place of the cash deposit.
- Get the required bond amount and any WREC bond form.
- Provide the account holder's legal name and service address exactly as on the WREC account.
- Owner name, home address and Social Security number for the credit review.
- Complete the bond application and review the quoted premium.
- Deliver the executed bond to WREC before service is connected.
Detailed Information About the Florida Utility Guarantee Bond:
What WREC actually asks for
WREC's Welcome New Member book lays out the deposit rules. A residential member's standard deposit is $300, and the co-op may set a different amount based on risk, the member's payment record or a third party credit score. A General Service account, which is how most businesses are served, carries a deposit equal to two months' billing (estimated) with a minimum of $300. WREC can also ask for an additional deposit from a member who pays late enough to trigger a collection order or who gives a worthless payment.
Where the bond fits
The Utility Guarantee bond is a promise from a surety to WREC that the account holder will pay what it owes for service. If the member leaves a balance unpaid, WREC can claim against the bond up to its amount, and the member must repay the surety. The bond stands in for cash, so it matters most on commercial accounts where two months of estimated billing is a large figure.
The Welcome Book does not mention surety bonds or guarantees as an alternative to a cash deposit. That does not mean WREC refuses them. It means acceptance is handled directly with the co-op. Before buying the bond, ask WREC member services whether it will take a bond for your account, the amount it wants, and whether it has its own bond form.
Refunds and prepaid service
Residential deposits are refunded without interest after 24 months of service with payments made before the past due date. WREC also offers prepaid metering with no deposit, starting with $100 in prepaid energy. For a business account, the bond amount usually tracks the deposit WREC would otherwise hold.
Eligibility and Requirements for a Florida Utility Guarantee Bond:
- Withlacoochee River Electric Cooperative, Inc. named as obligee.
- Bond amount matching the deposit WREC would otherwise require, which for General Service is two months' estimated billing with a $300 minimum.
- Principal name matching the WREC account holder.
- A surety company authorized to write bonds in Florida.
- Owner credit review.
Florida Utility Guarantee Bond FAQs:
For General Service accounts, WREC's published rule is two months' billing (estimated), with a minimum of $300. The bond amount generally follows that figure. WREC sets the final number.
WREC's member book does not list a bond option, so acceptance is decided by the co-op. Call WREC member services before buying the bond and confirm the amount and any required form.
Yes. WREC's rules allow an additional deposit from a member who pays late enough to cause a collection order or who gives a worthless payment. A larger bond or a rider may then be needed.
The surety looks at the owner's credit, the business's finances and the bond amount, then issues a quote.
