Utility Deposit Bond - Canoochee EMC in Georgia

Brief Summary

Canoochee EMC sets security deposits case by case, and for a new business the figure can be large. A utility deposit bond lets the member satisfy that requirement with an annual premium instead of tying up the full deposit in cash with the cooperative, subject to Canoochee EMC agreeing to accept a bond in place of cash.

Canoochee EMC collects a service security deposit before connecting service whenever it decides a deposit is needed to assure payment of the power bill. The cooperative sets the amount from the type of service, the risk of a new business, the member's credit and the account's connection history, and it can raise the deposit at any time. A utility deposit bond names Canoochee EMC as obligee and guarantees payment of the member's electric bills up to the bond amount.

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How to Apply for a Utility Deposit Bond:

• Apply for membership and service with Canoochee EMC.
• Get the required deposit amount from the cooperative in writing.
• Confirm Canoochee EMC will accept a surety bond in place of cash and ask for any required bond form.
• Have the account holder's legal name exactly as it appears on the service application.
• Complete the bond application and review the quoted premium.
• Pay the premium and deliver the signed bond to Canoochee EMC before service is connected.

Detailed Information About the Georgia Utility Deposit Bond:

There is no fixed deposit amount

The most common surprise is that Canoochee EMC does not publish a set deposit. Section 102 of the cooperative's Service Rules says a service security deposit is collected in advance of connecting service when the cooperative determines it is needed to assure payment of the power bill. In setting it, Canoochee EMC weighs the type of service, the risk involved in a new business enterprise, the member's credit rating, the history of connects, disconnects and reconnects at the premises or for the member, and any other factor bearing on the member's financial dependability. Your bond amount should match the deposit figure the cooperative gives you in writing.

The deposit can go up later

Section 102 also reserves the right to require a deposit or increase an existing one at any time, and says the requirement may be increased if an account becomes past due, delinquent or disconnected for nonpayment. Section 602 adds that a postpaid account disconnected for nonpayment must make an additional deposit unless the maximum has already been reached. If your deposit is raised, the bond amount may need to be raised with it.

Commercial and industrial accounts

Section 203 covers commercial, industrial and industrial park service and directs applicants to contact the cooperative for specifics. Commercial members are the most likely to be asked for a sizable deposit and the most likely to want a bond instead of cash.

What the bond guarantees

The member is the principal and Canoochee EMC is the obligee. If the member fails to pay for electric service, the cooperative can claim against the bond up to its amount. The surety pays valid claims and the member must repay the surety. Confirm with Canoochee EMC that it will accept a surety bond in place of a cash deposit, and get its required form and wording, before the bond is issued.

Cost

The premium is set by the surety based on the bond amount and the applicant's credit and financial strength. You see the exact figure when you apply.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• Canoochee EMC named as obligee.
• Bond amount equal to the deposit the cooperative sets.
• Principal name matching the membership and service application.
• Bond kept in force while the account is active.
• Bond increased if the cooperative raises the deposit requirement.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: