New Mexico Utility Deposit Bond Overview
- Purpose: To guarantee payment for utility services
- Who Needs It: Certain high volume utilities customers in New Mexico
- Bond Amount: Determined by the utility company based on usage
- Minimum Price: Typically 1% of the bond amount
What Is a New Mexico Utility Deposit Bond?
Some New Mexico utility companies require customers to file surety bonds in lieu of cash deposits before starting utility services.
New Mexico utility deposit bonds are an alternate form of financial security to ensure that customers pay their bills in full and on time.
Who Needs a Utility Deposit Bond?
In New Mexico, the following utilities companies may require or allow users to have a surety bond:
- City of Farmington Electrical
- Public Service Company of New Mexico (PNM)
If you need a utility bond not listed here, please call 1 (800) 308-4358 for assistance.
What Are the Bond Requirements?
New Mexico utility bond amount requirements are determined case by case based on usage. Verify your bond coverage with your utility company before applying.
How Much Do Utility Bonds Cost in New Mexico?
New Mexico 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 Utility Bond Work?
A NM 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: Get your free quote within one business day.
- Pay: Make the purchase online or over the phone.
We’ll typically email you the bond unless the utility provider requires wet signatures and seals. 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.
