Cullman Power Board deposit bonds.
From $100.
Instead of tying up cash as a security deposit with the Cullman Power Board, a customer can post a surety bond for the same amount. The board sets the deposit figure, usually sized to your estimated or historical usage. The premium is 2% of the bond amount, $100 minimum.
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How much does a Cullman Power Board deposit bond cost?
2% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard utility deposit bond — enter your amount, pay, and file with Cullman Power. Here is the whole thing:
Apply online
Your business or account details, the deposit amount Cullman Power set, and the effective date — that is the application.
Issued on the spot
Most applicants have the bond generated as soon as they pay, no waiting. No credit check up to $15,000. Above $15,000, a soft pull may add a short review.
File with Cullman Power
Submit the executed bond to the Cullman Power Board in place of the cash deposit on your account. Wet-ink originals mailed whenever the utility insists.
What it is and who needs it.
What the utility deposit bond actually covers
The Cullman Power Board, the electric division of the Utilities Board of the City of Cullman, distributes power purchased from the Tennessee Valley Authority to businesses and residents within the city. When you open or hold an account, the board can require a security deposit — sized to your estimated or historical usage — and, as with most municipal electric boards, will accept a surety bond in place of that cash deposit.
The bond is a payment guarantee in lieu of the cash deposit: it stands behind the electric charges on your account. If the account goes unpaid and the deposit would have covered it, the Cullman Power Board can recover against the bond instead of drawing down a cash deposit.
It is not insurance for you — if the surety pays the utility, you repay the surety. The advantage is cash flow: you pay a small premium — from $100 — rather than locking up the full deposit amount. Enter the figure the Cullman Power Board set on your account and your exact price appears at the application.
You need this bond if you are
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
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with Cullman Power. Submit the executed bond to the Cullman Power Board in place of the cash deposit on your account. Wet-ink originals mailed whenever the utility insists.
What sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $15,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the deposit amount Cullman Power set — the executed bond is generated instantly, ready to file in lieu of the cash deposit.
Start the application →Common questions.
Other Alabama bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Utility deposit bond, issued today.
Premiums from $100 — your exact price appears at the application. Enter the deposit Cullman Power set and file the same day.