Kentucky Utility Deposit Bond Overview
- Purpose: To guarantee payment for utility services
- Who Needs It: Certain high volume utilities customers in Kentucky
- Bond Amount: Determined by the utility company based on usage
- Minimum Price: Typically 1% of the bond amount
What Is a Kentucky Utility Deposit Bond?
Some Kentucky utility companies require customers to file surety bonds instead of cash deposits before starting utility services.
Kentucky utility deposit bonds are an alternate form of financial security to ensure that customers pay their bills in full and on time. Rather than full collateral, you only pay a small percentage of the total coverage amount upfront.
Who Needs a Utility Deposit Bond?
In Kentucky, the following utilities companies may require or allow users to have a surety bond:
- Duke Energy
- Kentucky Utilities Company
- Franklin Electric Plant Board
- Salt River Electric Cooperative
- Hopkinsville Electric System
- Paducah Power
- Appalachian Power Company
If you need a utility bond not listed here, please call 1 (800) 308-4358 for assistance.
How Much Do Utility Deposit Bonds Cost?
Bond amount requirements are determined case by case. Verify your bond coverage with your utility company before applying.
Kentucky utility deposit bonds typically cost 1–10% of the total bond amount based on personal credit score. For example, a qualified applicant could pay just $100 for a $10,000 utility bond. Get your free quote now.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Kentucky Utility Bond Work?
A utility deposit bond creates a legally-binding contract between a principal (you), obligee and surety provider (us).
| Bond Party | Description |
|---|---|
| 1) Principal | The utilities customer filing the bond |
| 2) Obligee | The utility company requiring the bond |
| 3) Surety | The issuing surety provider |
If you fall behind on payments, the bond protects the utility company from loss up to the full bond amount. In turn, you must reimburse the surety for all claims paid out.
How Do I Get a Bond?
We make the utility bond application process quick and easy. Follow these three steps to get bonded:
- Apply: Fill out a quick application form.
- Quote: Receive your free quote within one business day.
- Pay: Complete the purchase online or over the phone.
We’ll typically email you the bond unless the utility provider requires the original, physical bond form. Remember to file the bond with the company as instructed.
How Do I Renew My Bond?
If you need to renew your utility bond for another year, we’ll send you reminders in advance. Make sure the coverage amount is still correct. If so, simply pay the renewal invoice to extend coverage for another term.
If you need to update your bond amount, contact us at [email protected] with the new information.
Can I Make Changes to My Bond?
If you need to update information on your current bond form, like the amount or a name, email your surety provider.
You can reach us at [email protected] with the request. Please confirm if your utilities provider will accept a bond rider document.
