Utility Deposit Bond - Albany Utilities of the City of Albany, GA in Georgia

Brief Summary

Every commercial customer opening service with Albany Utilities pays a deposit, and the amount rises as the credit rating falls. Those deposits stopped earning interest after August 1, 2022, so the cash just sits for at least two years. A utility deposit bond, where Albany Utilities agrees to accept one, keeps that money working in your business.

Albany Utilities, run by the City of Albany, Georgia, requires all commercial customers to make a deposit covering the utility services available at the new address. The amount is based on the customer's credit rating. The Utility Deposit bond guarantees Albany Utilities that the account will be paid, in place of the cash deposit. The city's published pages do not describe a bond option, so confirm acceptance, the amount and any required form with Albany Utilities before the bond is issued.

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How to Apply for a Utility Deposit Bond:

• Ask Albany Utilities whether it will accept a surety bond for your commercial account in place of the cash deposit.
• Get the deposit amount Albany Utilities sets from your credit rating, and use it as the bond amount.
• Provide the legal business name and service address exactly as on the utility application.
• 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 Albany Utilities before service starts.

Detailed Information About the Georgia Utility Deposit Bond:

Commercial customers always pay a deposit

The City of Albany's Commercial Rates and Fees page is direct about it. All commercial customers applying for service with Albany Utilities are required to make a deposit, and the amount is based on the customer's credit rating. The page does not publish a dollar figure, so expect Albany Utilities to set it after reviewing your credit. Residential customers are treated differently, with the city listing a $200.00 maximum residential deposit.

How long the cash is tied up

Commercial deposits are refunded after two years, but only if the account has not been delinquent during that period and an excellent credit rating is maintained. Deposits made after August 1, 2022 no longer earn the 1% interest the city used to pay. If the account closes before two years, the deposit is applied to the final bill. A deposit moves with the account if a commercial customer transfers to another address.

Where the bond fits

The Utility Deposit bond is a guarantee from a surety to Albany Utilities that the commercial account holder will pay for service. If the account closes with an unpaid balance, Albany Utilities can claim against the bond up to its amount, and the business repays the surety. The city's pages do not mention surety bonds, so ask Albany Utilities customer service at (229) 883-8330 whether it will take a bond for your account and what amount and form it requires.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• Albany Utilities of the City of Albany, Georgia named as obligee.
• Bond amount equal to the deposit Albany Utilities would otherwise require.
• Principal name matching the commercial utility account.
• A surety company authorized to write bonds in Georgia.
• Owner credit review.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: