TEP utility deposit bonds.
From $100.
When Tucson Electric Power (TEP) asks a customer to post a deposit to establish or maintain electric service in southern Arizona, you can post a surety bond instead of tying up cash. Pricing is 2% of the bond amount, $100 minimum. Enter the deposit amount TEP set on your account and your exact price appears at the application.
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How much does a TEP utility 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 deposit bond — enter your amount, pay, and file with TEP. Here is the whole thing:
Apply online
Your account details, the deposit amount TEP required, and the effective date — that is the application.
Issued on the spot
No credit check up to $15,000 except for corporations and LLCs, and most applications approve and issue instantly on payment. From $20,000, or at any amount for corporations and LLCs, the soft pull may add a short review.
File with TEP
Submit the executed bond to Tucson Electric Power in place of your cash deposit. Wet-ink originals mailed on request.
What it is and who needs it.
What the deposit bond actually does
Tucson Electric Power (TEP) — the electric public service corporation serving Tucson and much of southern Arizona, regulated by the Arizona Corporation Commission (ACC) — can require a deposit before it establishes or continues service, especially for a commercial account or one without an established payment history. Under Arizona Administrative Code R14-2-403, the ACC caps how large that deposit can be: for a residential account, not more than roughly twice the average residential-class bill, and for a nonresidential account, not more than about 2.5 times the customer's estimated maximum monthly bill.
Rather than leave that cash sitting with the utility, TEP accepts a surety bond as an alternative to the cash deposit under its own filed tariff. You post a bond for the deposit amount and pay a premium instead; the bond guarantees payment of your TEP charges up to the bonded amount — if the account goes unpaid, TEP can recover against the bond rather than the cash it would otherwise hold.
It is not insurance for you — if the surety pays TEP, you repay the surety. The advantage is cash flow: you keep the deposit amount working in your business. Enter the deposit amount TEP set on your account and get your price, from a $100 minimum, 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 TEP. Submit the executed bond to Tucson Electric Power in place of your cash deposit. Wet-ink originals mailed on request.
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 for individuals and partnerships (above that, a soft pull at most); for corporations and LLCs, one soft pull at every amount, never a hard inquiry.
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 TEP required — the executed bond is generated instantly, ready to file in place of cash.
Start the application →Common questions.
Other Arizona bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Keep your deposit working.
Pricing from $100. Post a bond instead of cash with TEP the same day.