Southern KY RECC deposit bonds.
From $100.
A member of Southern Kentucky RECC can post a utility deposit bond in place of a cash security deposit. Kentucky PSC rules at 807 KAR 5:006, Section 8 let the co-op require a deposit and accept a surety bond instead. The bond is priced at 2% of the bond amount, $100 minimum.
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How much does a Southern KY RECC 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 give the executed bond to the co-op. Here is the whole thing:
Apply online
Your details, the deposit amount Southern Kentucky RECC required, and the effective date — that is the application.
Issued on the spot
No waiting — the executed bond is generated as soon as you pay. Above $15,000, a soft pull may add a short review.
File with the co-op
Submit the executed bond to Southern Kentucky RECC in place of your cash deposit. Wet-ink originals mailed whenever the co-op insists.
What it is and who needs it.
What the utility deposit bond actually does
Southern Kentucky RECC is a member-owned rural electric cooperative corporation serving south-central Kentucky, and — like the investor-owned and municipal utilities regulated by the state — it is subject to the Kentucky Public Service Commission’s general service rules. Under 807 KAR 5:006, Section 8, “a utility may require from a customer a minimum cash deposit or other guaranty to secure payment of bills,” most often for a new account without an established payment history or one re-establishing service.
A utility deposit bond is a surety alternative to that cash deposit — the “other guaranty” the regulation contemplates. Instead of leaving cash sitting with the co-op, sometimes for years, you post a bond for the same amount. The co-op is the obligee, and the bond guarantees payment of your utility charges up to the bond amount.
Where actual usage history exists, 807 KAR 5:006 calculates the deposit from your average bill over the most recent 12 months, and caps it at two-twelfths (2/12) of your actual or estimated annual bill for monthly billing (three-twelfths for bimonthly, four-twelfths for quarterly). If bills go unpaid and the co-op is harmed, it can recover against the bond — and if the surety pays, you repay the surety. We issue the amount Southern Kentucky RECC set, priced at 2% of the bond amount, $100 minimum, freeing up the cash you would otherwise have on deposit.
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 the co-op. Submit the executed bond to Southern Kentucky RECC in place of your cash deposit. Wet-ink originals mailed whenever the co-op 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 Southern Kentucky RECC set — the executed bond is generated instantly, ready to give the co-op in place of cash.
Start the application →Common questions.
Other Kentucky bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Skip the cash deposit.
Pricing from $100. Enter the deposit Southern Kentucky RECC required and keep your cash free.