Claiborne Electric Cooperative deposit bonds.
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Claiborne Electric Cooperative collects a security deposit on most new accounts: one-sixth of the estimated annual bill, $200 minimum for homes and $300 for other accounts. The co-op can accept a surety bond at least as large as the deposit in place of cash. A specialist confirms the premium, usually within one business day.
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How much does a Claiborne 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.
Claiborne Electric collects its deposit in advance of connecting service unless it is waived. Here is the whole process with a bond instead:
Request a quote
Your name or business details, the service address, your Claiborne Electric account number, an effective date, and the deposit amount the co-op 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 at least the co-op's deposit figure and returns your exact premium, usually within one business day. Accept the quote and pay, and the bond issues.
Hand it to the co-op
Deliver the executed bond to Claiborne Electric member services in Homer or Farmerville in place of the cash deposit. The co-op decides whether the instrument is acceptable, so confirm with them before you apply.
What it is and who needs it.
What the Claiborne Electric deposit bond replaces
Claiborne Electric Cooperative, Inc. is a member-owned, not-for-profit electric cooperative based at 12525 Highway 9 in Homer, with a branch office in Farmerville. Its LPSC Electric Tariff No. 1 lists service in Bienville, Claiborne, Lincoln, Ouachita, Union and Webster parishes in north Louisiana. The tariff is filed with and approved by the Louisiana Public Service Commission; its Standard Terms and Conditions were last revised effective March 7, 2024 under LPSC Docket U-36552.
Under the tariff's Security Deposits section, a deposit is collected in advance of connecting any service where the co-op decides one is needed to assure payment, and deposits are collected for all new accounts unless waived by the General Manager/CEO, Chief Financial Officer or an office manager. The amount is one-sixth of the estimated annual billing for the location, based on prior billing there, your own load data, or a comparable location, with a $200 minimum for residential accounts and a $300 minimum for non-residential and commercial accounts. The co-op may also ask for a new or additional deposit if a member's payment record slips.
Paragraph g is what makes the bond possible: an irrevocable letter of credit, surety bond, or other instrument acceptable to Claiborne Electric, valued equal to or greater than the required deposit, may be accepted in place of cash. Acceptance is at the co-op's discretion. The bond is a guarantee, not a payment — if the account goes unpaid, the co-op can claim against it up to its face amount, and the member repays the surety.
Plan for the long run. Residential deposits are held until the member completes 36 monthly payments with minimal delinquencies, and even then a refund is at the co-op's option; all other deposits are held until service is terminated permanently. A commercial or non-residential bond should therefore renew each year for as long as the account stays open. The alternatives are cash, which the tariff lets you pay in three installments and which earns interest at the LPSC-set rate, a letter of credit, or the co-op's EZPay prepay program, which carries no deposit.
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
Hand it to the co-op. Deliver the executed bond to Claiborne Electric member services in Homer or Farmerville in place of the cash deposit. The co-op decides whether the instrument is acceptable, so confirm with them before you apply.
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 application, one specialist review.
The request asks for your contact details, the service address, your Claiborne Electric account number, the effective date, and the deposit amount the co-op assigned — nothing more. A surety specialist reviews it and returns your exact premium, typically within one business day. Free until your bond is issued.
Start the application →Common questions.
Other Louisiana bonds.
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Keep the deposit cash in your pocket.
Send the deposit figure Claiborne Electric assigned and a surety specialist quotes the bond — typically within one business day. Free until issued.