Utility Deposit Bond - Columbus Light and Water Department in Mississippi

Brief Summary

There is no fixed bond amount here. Columbus Light and Water sets a commercial deposit at twice your highest bill in the past year, or from load information for a new account, and the bond is written for whatever deposit the utility calculates. A business with heavy summer or production bills can face a large deposit, and a bond lets it keep that cash in the business for an annual premium.

Columbus Light and Water Department serves the City of Columbus, Mississippi and requires a deposit for new service. Commercial deposits equal the highest bill within the last year times two, or are based on load information. A utility deposit bond guarantees the customer's bills up to the deposit amount. Confirm with the utility that it will take a bond for your account and get its required form before the bond is issued.

We can help with all Mississippi bonds!

How to Apply for a Utility Deposit Bond:

• Ask Columbus Light and Water for the deposit amount on your account, highest bill in the past year times two or a load based figure.
• Confirm with the utility that it will accept a surety bond and whether it uses its own bond form.
• Settle any old balance the utility requires before new service is set up.
• Apply for a bond in the deposit amount naming Columbus Light and Water Department as obligee.
• Deliver the executed bond to the utility at 420 Fourth Avenue South, Columbus MS 39703.

Detailed Information About the Mississippi Utility Deposit Bond:

How the deposit is set

Columbus Light and Water Department, at 420 Fourth Avenue South in Columbus, serves nearly 13,000 business and residential customers within the city limits of Columbus. Its published deposit rules are:

• Commercial: the highest bill within the last year times two, or an amount based on load information
• Residential electric only: $200
• Residential electric and water: $300
• Residential water only: $100
• Homeowner: $200

The bond amount follows the deposit the utility calculates for the account, so two businesses can need very different bonds.

Old balances

The utility requires a deposit for new service and half of any old bill to establish new service. Collection fees are added to unpaid final bills. A bond covers future bills on the new account and does not pay off an old balance.

What the bond does

The customer is the principal and Columbus Light and Water Department is the obligee. If the customer stops paying, the utility can claim against the bond for the unpaid amount, up to the bond limit. The surety pays a valid claim and the customer then owes the surety. The bond stands in for cash the utility would otherwise hold.

Before the bond is issued

Call Columbus Light and Water customer service at 662-328-7192, office hours 8:00 a.m. to 4:30 p.m., and confirm that a surety bond is acceptable for your account, the exact deposit amount, the obligee name to use and whether the utility has its own bond form. The utility's Schedule of Deposits is posted on its Commercial service page.

What the premium depends on

The surety sets the premium from the bond amount and a review of the business owner's credit and the company's payment history.

Eligibility and Requirements for a Mississippi Utility Deposit Bond:

• Bond amount equal to the deposit the utility calculates.
• Columbus Light and Water Department named as obligee.
• Account holder's legal business name on the bond matching the utility account.
• Owner credit review by the surety to set the premium.
• Bond kept in force while the utility requires a deposit on the account.

Mississippi Utility Deposit Bond FAQs:

Official and Additional Resources for the Mississippi Utility Deposit Bond: