Utility Deposit Bond - Diverse Power Inc. in Georgia

Brief Summary

When Diverse Power asks for a security deposit, a utility deposit bond lets the account holder post a surety guarantee in place of cash, if the cooperative agrees to accept one. That keeps working capital in the business instead of sitting with the utility for the life of the account.

Diverse Power Incorporated, a member owned electric cooperative based in LaGrange, Georgia, sets security deposits through its Service Rules. Residential deposits are tied to credit score, ranging from none at all to up to two times the estimated highest monthly bill. A utility deposit bond names Diverse Power as obligee and guarantees payment of the member's electric bills up to the bond amount. The cooperative's published rules do not address commercial deposits or bond acceptance, so confirm the required amount and bond form with Diverse Power before the bond is issued.

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How to Apply for a Utility Deposit Bond:

• Ask Diverse Power for the deposit amount assigned to the account.
• Confirm the cooperative will accept a surety bond in place of a cash deposit.
• Request the cooperative's bond form, if it has one.
• Apply for the bond in the exact legal name on the electric account.
• Pay the premium and deliver the executed bond to Diverse Power.
• Pay the $5.00 membership fee and $15.00 connection charge.

Detailed Information About the Georgia Utility Deposit Bond:

How Diverse Power sizes a deposit

The Diverse Power Service Rules tie residential deposits to the BEACON score on the applicant's credit report:

• Score above 650: no deposit required.
• Score of 600 to 649: initial deposit of up to one times the estimated highest monthly bill.
• Score below 600: initial deposit of up to two times the estimated highest monthly bill.
• No estimate available: a minimum deposit of $300.

A member reconnected after nonpayment must pay a deposit if the account does not already carry one, and a meter tampering case triggers a deposit of $300 or two months' estimated bill, whichever is greater.

Where the bond fits

A utility deposit bond is a three party guarantee. The member is the principal, Diverse Power is the obligee, and the surety promises to pay the cooperative up to the bond amount if the member leaves bills unpaid. It replaces a cash deposit. It does not pay the monthly bill, and the member remains responsible for reimbursing the surety for any claim it pays.

The published Service Rules address residential deposits but say nothing about commercial accounts or whether a surety bond will be accepted in place of cash. Larger commercial and industrial accounts are the usual candidates for a bond, because a deposit set at one or two months of a large load ties up real money. Ask Diverse Power for the deposit figure on your account and whether it will take a bond on its own form or the surety's form before you order one.

Other charges at sign up

New members pay a $5.00 membership fee before service begins and a $15.00 connection charge. A member who withdraws in good standing, with all amounts paid, is entitled to a refund of the membership fee and any security deposit the cooperative is holding.

Premium

The surety sets premium based on the bond amount and the applicant's credit and financial strength. There is no fixed rate published by the cooperative.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• Diverse Power Incorporated named as obligee.
• Bond amount equal to the deposit the cooperative requires.
• Principal name matching the electric service account exactly.
• Credit review of the business and its owners by the surety.
• Bond kept in force for as long as the cooperative requires a deposit on the account.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: