Utility Deposit Bond - Jefferson Energy Cooperative in Georgia

Brief Summary

Jefferson Energy Cooperative's own service rules let a commercial member post a surety bond in place of a cash deposit. When the deposit is sized at roughly two months of electric bills, a bond keeps that cash in the business for an annual premium.

Jefferson Energy Cooperative may require a security deposit before connecting service when it decides a deposit is needed to assure payment. Its Service Rules and Regulations set commercial deposits at approximately two times the average monthly bill, with a $300 minimum, and state that in lieu of a deposit a consumer may provide a surety bond in an amount and from a surety adequate to secure payment of the electric bill. Confirm the amount and bond form with Jefferson Energy before the bond is issued.

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How to Apply for a Utility Deposit Bond:

• Call Jefferson Energy at 706-547-2167 for the commercial deposit amount on your account.
• Tell the cooperative you intend to post a surety bond in lieu of the deposit and ask for the obligee name and any required form.
• Have the member's legal business name and the service address exactly as they appear on the membership application.
• Provide owner names and home addresses for the credit review.
• Complete the bond application, pay the premium and receive the executed bond.
• Deliver the original bond to Jefferson Energy before service is connected.

Detailed Information About the Georgia Utility Deposit Bond:

Commercial members can bond instead of paying cash

Jefferson Energy Cooperative's Service Rules and Regulations, adopted in 1984 and last revised in January 2020, cover deposits in Section 102. For commercial service, the cooperative may require an initial deposit of approximately two times the average monthly bill, with a minimum of $300. Where there is no comparable member business to estimate from, the deposit is based on the square footage of the structure. The same section says that in lieu of a deposit, a consumer may provide a surety bond in an amount and from a surety adequate to secure payment of the electric bill.

How the deposit is decided

The cooperative collects a deposit when it determines one is needed to assure payment. It looks at the type of service, the risk of a new business, the applicant's credit rating and the usage and connect or disconnect history of the premises. It can ask for more than the usual figure under a written contract or in unusual circumstances. The Apply for Service page states that commercial and irrigation deposits vary and asks applicants to call 706-547-2167 for a quote.

What the bond guarantees

The bond promises Jefferson Energy that the member will pay its electric bills. If the account ends with an unpaid balance, the cooperative can claim on the bond, and the surety pays valid amounts up to the bond limit. The member then repays the surety.

Residential deposits

For standard residential service, the Apply for Service page shows no deposit for new members with a credit score of 620 or above and a $300 deposit at 619 or below. Residential deposits are refundable with a satisfactory payment history, half after one year and the rest after three years. The surety bond alternative in the service rules is written for commercial service.

Eligibility and Requirements for a Georgia Utility Deposit Bond:

• Bond amount adequate to secure payment of the electric bill, generally tracking the deposit of about two times the average monthly bill with a $300 minimum.
• Jefferson Energy Cooperative named as obligee.
• Member name on the bond matching the membership and service account.
• Surety acceptable to the cooperative.
• Owner credit review.

Georgia Utility Deposit Bond FAQs:

Official and Additional Resources for the Georgia Utility Deposit Bond: