Cullman Electric Cooperative deposit bonds.
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Before Cullman Electric Cooperative connects a business, farm or other non-residential account, it requires a deposit or suitable guaranty, and a surety bond is first on its list. The bond equals the deposit, two times your estimated monthly bill. A specialist confirms the premium for your figure, usually within one business day.
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How much does a Cullman Electric Cooperative deposit bond cost?
It is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
From the co-op's deposit figure to connected service.
Cullman EC won't energize a non-residential account until the deposit or a suitable guaranty is in place. Here is the whole process with a bond:
Request a quote
Your business details, the service address, an effective date, and the deposit amount Cullman EC set for the account — that is the request. There is no credit section in the application.
A specialist quotes it
A surety specialist confirms the bond is written to the co-op's figure and returns your exact premium, usually within one business day. Accept the quote and pay, and the bond issues.
Deliver to Cullman EC
Your executed bond and power of attorney arrive by email, ready to hand to Cullman EC Member Services at the Cullman main office or the Addison branch before service is connected. Wet-ink original mailed on request.
What it is and who needs it.
What the Cullman EC deposit bond actually guarantees
Cullman Electric Cooperative (CEC) is a member-owned electric cooperative based at 1749 Eva Road NE in Cullman, serving roughly 48,000 member accounts across Cullman, Winston, Morgan, and Lawrence counties with wholesale power from the Tennessee Valley Authority. Its Board of Trustees approves the co-op's own Rules and Regulations for Service, and those rules are part of every contract for electric service from CEC.
Part II of those rules splits deposits into residential and non-residential / general service. Rule 2.7 requires a deposit or suitable guaranty from every non-residential member before service is supplied, and lists what counts: a surety bond, an irrevocable bank letter of credit, a certificate of deposit payable to CEC, or cash — alone or in combination. A qualifying member may also cover up to half of the deposit with accounts-receivable insurance. Rule 2.8 sets the amount at two times the estimated monthly bill, estimated from prior usage at the location, load data you provide, or a comparable service type, and lets either side revisit the figure annually after twelve months of service.
The bond is a payment guarantee in place of the cash deposit: if the account closes with unpaid power bills that a deposit would have covered (Rule 2.11), CEC can recover against the bond. It is not insurance for you — if the surety pays CEC, you repay the surety. Because the non-residential rules give no one-year refund path, plan on keeping the bond in force, renewed each year, for as long as the account is open; we notify you 60 and 30 days before each renewal. If CEC adjusts the deposit at an annual review, the bond amount can be changed to match.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
Term and renewal are set in the underwriter's quote.
Keep the bond in force for as long as the obligation behind it runs.
How to file it
Deliver to Cullman EC. Your executed bond and power of attorney arrive by email, ready to hand to Cullman EC Member Services at the Cullman main office or the Addison branch before service is connected. Wet-ink original mailed on request.
What sets the price
This bond is underwritten: the premium is quoted from the bond amount and your financial picture, so there is no flat price to show.
One short form to a quote request.
These are the actual issuing fields — the bond amount, the service address, the entity type, and the business owner and contact details. No credit section, because this application collects no credit information. Submit once and a specialist returns your quote, usually within one business day. Free until issued.
Start the application →Common questions.
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Get the co-op account connected without the cash deposit.
Send the deposit figure Cullman Electric Cooperative set, and a specialist quotes the bond — usually within one business day. Free until issued.