Utility Deposit - MAIL Bond - Georgia Power Company in Georgia

Brief Summary

When Georgia Power asks a new account for a security deposit, a surety bond lets the business keep that cash in operating funds. The bond amount follows the deposit Georgia Power sets, so the first step is getting that figure in writing from the utility.

Georgia Power may ask a new customer for a security deposit before service is connected, and it can also ask for one after late payments. The amount depends on the customer's credit score and any unpaid past due balances, and Georgia Power states that a required deposit cannot be waived. This bond names Georgia Power Company as obligee and guarantees payment of the account's utility bills in place of the cash deposit.

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How to Apply for a Utility Deposit - MAIL Bond:

• Ask Georgia Power business customer service for the exact deposit amount on the account.
• Confirm that Georgia Power will accept a surety bond in place of a cash deposit for that account.
• Get the account name and service address exactly as Georgia Power has them on file.
• Complete the bond application and review the quoted premium.
• Pay the premium and receive the signed bond naming Georgia Power Company as obligee.
• Deliver the original bond to Georgia Power using the instructions the utility gives you.

Detailed Information About the Georgia Utility Deposit - MAIL Bond:

The bond amount comes from Georgia Power, not from a fixed schedule

There is no single statewide figure for this bond. Georgia Power decides whether a deposit is needed and how large it is, based on the customer's credit score and any unpaid past due balances. For residential accounts the utility caps the deposit at up to two times the average monthly bill at the location. Business accounts are handled through Georgia Power's business customer service line, 1-888-655-5888, so ask for the deposit amount and whether the utility will accept a surety bond in place of cash before ordering the bond.

What the bond guarantees

The bond promises Georgia Power that the account holder will pay for the electric service used. If the account closes with an unpaid balance, Georgia Power can claim against the bond up to its face amount, and the surety then looks to the business owner for repayment. The bond is not insurance for the customer. It is a credit guarantee for the utility.

How this compares with a cash deposit

Georgia Power holds cash deposits as security for the life of the account, pays 3 percent simple interest while it holds them, and refunds the deposit plus interest after 12 consecutive months of on time payments. A cash deposit does not count toward the monthly bill. A bond trades that tied up cash for an annual premium. Confirm the current bond form and mailing instructions with Georgia Power before the bond is issued.

Eligibility and Requirements for a Georgia Utility Deposit - MAIL Bond:

• Bond amount equal to the deposit Georgia Power requires on the account.
• Georgia Power Company named as obligee.
• Principal name matching the Georgia Power account holder exactly.
• Owner or business credit review by the surety, which shapes the premium.
• Bond kept in force for as long as Georgia Power requires security on the account.

Georgia Utility Deposit - MAIL Bond FAQs:

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