North Carolina Utility Deposit Bond

North Carolina Utility Deposit Bond

In the state of North Carolina, many utility providers require business account customers to provide a deposit in order to activate electrical or gas service. Utility companies seek protection from financial damages caused by new customers and Jet Insurance Company provides the utility deposit bond as a guarantee for commercial customers in lieu of a cash deposit.

PURCHASE UTILITY DEPOSIT BOND

When you buy your bond with Jet, the application takes minutes through our streamlined process. Jet cuts out the middlemen who slow down the process and can cost you more in the form of fees and commissions.

What Is the Lowest Price for the Bond?

At Jet, your utility deposit bond can cost as low as $100 for a year. Annual cost is calculated as a percentage of the total bond limit, which is a multiple of typical monthly charges, depending on the utility provider’s requirements.

NC Utility Deposit Bond Price 
Bond Limit  Cost
$5,000 $100
$10,000 $200
$20,000 $400


Jet operates as a direct carrier, so we work with you throughout the process from application, release of bonding requirement, discontinuation of service, and any claims that arise in between.

Can Jet File the Bond For Me to the Utility Provider?

Yes, Jet can! Once you purchase your bond, Jet will immediately ship the bond (original or electronic copy, depending on the Utility Provider’s requirements) to your Utility Provider for you. An electronic copy of the bond will immediately be emailed to you for your records as well.

Other carriers charge you shipping fees to send you the bond, and then leave shipment to the provider up to you at your expense. Not at Jet!

If you would like the original bond mailed directly to your location, you can select that option at checkout. Please note the bond must be filed with the applicable Utility Provider at the address in the table below:

North Carolina Utility Deposit Bond Filing Information
Utility Provider Address Phone
City of New Bern 252-639-2750 PO Box 1710
New Bern, NC 28563
City of Rocky Mount 252-972-1250 PO Box 1180
Rocky Mount, NC 27802
City of Statesville Utilities 704-878-3564 PO Box 1111
Statesville, NC 28687
Mountain Electric Cooperative 423-727-1800 1373 Elk Park Hwy
Newland, NC 28657
Town of Apex Public Works and Utilities 919-362-8676 105 Upchurch St
Apex, NC 27502
Town of Smithfield 919-934-2116
ext. 1105
PO Box 761
Smithfield, NC 27577
Brunswick Electric Membership Corporation 800-842-5871 PO Box 826
Shallotte, NC 28459
Town of Clayton 919-553-5002 PO Box 879
Clayton, NC 27528
City of Fayetteville Public Works Commission 910-483-1382 PO Box 1089
Fayetteville, NC 28302
City of Morganton City Utilities 828-438-5245 305 East Union St, Suite A100
Morganton, NC 28655
Dominion North Carolina Electric 866-366-4357 Credit Services 10th Floor
600 E. Canal St
Richmond, VA 23219
Haywood Electric Membership Corp 828-452-2281 376 Grindstone Rd
Waynesville, NC 28785
Piedmont Natural Gas Company 800-752-7504 PO Box 1246
Charlotte, NC 28201
PSNC Energy AKA Dominion Energy Gas 877-776-2427 ATTN: Kelly Smith
PO Box 935
Lowell, NC 28098


How Is the Deposit Amount Determined by the Utility?

The deposit amount (consequently the bonding limit) varies based on the utility provider. The table below details how each individual utility determines the deposit amount they require, if that information is available. Some utility companies prefer to conduct a soft credit check for a custom deposit amount for all new customers (also noted in the table).

Utility Deposit bonds are generally considered continuous until the discontinuation of service. In some cases (see table of utility companies), the bonding requirement is eliminated, and the bond amount refunded after a period of successful on-time payments.

North Carolina Utility Deposit Bond Cancellation
Utility Provider Deposit Requirement Bond Reduction Requirements Cancellation Period (in days)
City of New Bern $10,000 or 2x highest monthly bill, whichever is greater Refunded at discontinuation of service 30
City of Rocky Mount $400 or 2x average monthly bill, whichever is less Reduced to 1x average monthly bill after 2.5 years of good payment history 30
City of Statesville Utilities Average of past 12 monthly bills; $300 minimum Refunded at discontinuation of service 30
Mountain Electric Cooperative 2x highest monthly bill Refunded at discontinuation of service 30
Town of Apex Public Works and Utilities 2x average monthly bill; $200 minimum Refunded at discontinuation of service 30
Town of Smithfield 2x average monthly bill; $125 minimum Refunded at discontinuation of service 30
Brunswick Electric Membership Corporation Custom Refunded at discontinuation of service 90
Town of Clayton 2.5x average monthly bill Refunded at discontinuation of service 30
City of Fayetteville Public Works Commission 2x average monthly bill Refunded at discontinuation of service 60
City of Morganton City Utilities Custom Refunded at discontinuation of service 30
Dominion North Carolina Electric Custom; $500 minimum Refunded at discontinuation of service 60
Haywood Electric Membership Corp 3x average monthly bill Refunded at 60 months of on-time payments 60
Piedmont Natural Gas Company Custom Refunded at 12 months; no more than 2 late payments allowed 60
PSNC Energy AKA Dominion Energy Gas Equal to highest monthly bill Refunded at 12 months; no returned checks and no more than 2 late payments allowed 60


What Happens If I Need to Cancel My Bond?

In general, Utility Deposit bonds cannot be cancelled until service is discontinued and the account balance is paid in full. In some cases, utility providers reduce the bonding requirement once the customer has successfully paid their bill on time for a period of time (typically after 12 to 24 months of on-time payments). 

When you decide to discontinue your service with your utility provider, ensure you have paid any outstanding balance with your provider, who will in turn release Jet’s liability for your account. Most utility companies do not release liability to the customer or surety until 30, 60 or 90 days after cancellation of service; during this time, any charges that accrue to the account must still be paid to avoid a bond claim. Please refer to the chart above to see each utility’s cancellation period.

Is It Possible To Cancel the Bond and Receive a Refund?

With Jet, you can! Other insurance carriers and brokers retain the unearned premium and charge fees for early cancellation. Ever heard of a minimum earned amount? We have from our competitors rate filings and consider it a hidden tactic to account for inefficiencies. Jet returns all premium not earned to our customers. 

Jet will request cancellation through the NMLS and the bond does remain active for 30 days following cancellation notice. We do have to factor in any time the bond is active into our return calculations.

How Does a Principal Avoid Bond Claims?

To avoid a bond claim against your deposit (and surety bond), simply pay your utility bill on time and close out your account balance when you discontinue service. If a business defaults on an outstanding balance, the utility provider may file a claim against the surety bond.

In a few cases, utility providers may reward sustained payment history and reduce or eliminate the deposit requirements after a defined period of on-time payments. See table above under Bonding Reduction Requirements.

What Happens If I Receive a Bond Claim?

If you receive a claim against your bond, Jet will investigate the claim from the utility company to assess the claim’s validity. You will need to provide Jet with any evidence of payments made and if payments are all current.

If the claim is found to be valid, Jet will pay the claim up to the bonding amount. However, you are responsible as the account holder for missed payments, and are still obligated to pay Jet back for the amount of the claim. 

In addition, many utility companies stipulate that the surety bond will be used to compensate for any legal fees incurred in processing the claim. Again, you are still responsible to reimburse Jet for such charges, should they arise.

What Is the Purpose of the Utility Deposit Bond?

The Utility Deposit Bond exists as an alternative to submitting a full cash deposit that protects utility companies from financial damage that might be experienced when businesses default on their utility payments. This could occur if a customer allows their account balance to go unpaid for a period defined by the provider (commonly 30, 60, or 90 days), or if a customer discontinues service and leaves behind an outstanding balance. 

If you forgo the deposit, which does free up capital for other necessary business expenditures, then the Utility Deposit Bond from Jet is a great option to meet the needs of the utility. We give them the financial guarantee they need to allow your business to get services started.

How Does the Application Process Work With Jet?

Applying for your bond with Jet is easy. Depending on the size of your required deposit, your application can be completed in minutes and completely online. For larger deposits, Jet will ask you for some additional financial information about your business, conduct a short review, and quickly send you a quote for your bond. Bonds are purchased online, and a copy of the bond and receipt will be immediately available for your records.

PURCHASE UTILITY DEPOSIT BOND

North Carolina Utility Deposit Bond Form