Maryland SMECO deposit bonds.
From $100.
The Southern Maryland Electric Cooperative (SMECO) can require a nonresidential account to post security, and its own account policy accepts a surety bond instead of the cash. COMAR 20.30.01 generally caps the deposit at roughly two billing periods of estimated charges. Premiums cost 2% of the bond amount, $100 minimum.
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How much does a Maryland SMECO deposit bond cost?
2% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
Utility deposit bonds are simple to issue once you have SMECO's quoted amount. Enter it and file:
Apply online
No credit check up to $15,000.
Approved
Most utility deposit bonds clear quickly. Pricing is 2% of the bond amount, $100 minimum. Larger amounts may get a brief review.
File with SMECO
Your executed bond and power of attorney arrive by email, ready to submit to SMECO in place of the cash deposit. Wet-ink originals mailed on request.
What it is and who needs it.
What the utility deposit bond actually guarantees
A utility deposit bond is a payment guarantee that takes the place of the cash security deposit SMECO can require from a nonresidential account that is establishing new service or reestablishing credit after a payment issue. Maryland's Public Service Commission regulates the amount a utility may collect: under COMAR 20.30.01, a nonresidential deposit generally may not exceed the customer's estimated charges for two consecutive billing periods, or 90 days, whichever is less (with a minimum of $5, and larger amounts allowed for short-term or special-occasion service).
SMECO is the member-owned electric utility serving Calvert, Charles, St. Mary's, and parts of Prince George's County.
It is a three-party arrangement: you (the principal), the surety carrier, and SMECO (the obligee). If your account goes delinquent and SMECO is owed unpaid charges it would otherwise have recovered from a cash deposit, it can claim against the bond up to the bond amount — and if the surety pays, you repay the surety. It is a credit-security backstop, not insurance for you, and it frees up the cash a deposit would otherwise tie up.
As a member-owned cooperative, SMECO applies its own account policy — informed by the statewide COMAR framework — to decide whether a bond will be accepted in place of the deposit it has quoted; confirm both the amount and that a bond is acceptable directly with SMECO before applying. Premiums are priced at 2% of that amount, $100 minimum. No credit check up to $15,000.
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 SMECO. Your executed bond and power of attorney arrive by email, ready to submit to SMECO in place of the 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. 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 instantly.
These are the actual issuing fields. No credit check up to $15,000. Your price — 2% of the bond amount, $100 minimum — is set at application.
Start the application →Common questions.
Other Maryland bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Skip the cash deposit.
Priced at 2% of the bond amount, $100 minimum. No credit check up to $15,000. Enter the amount SMECO quoted and file the same day.