Shakopee utility deposit bonds.
From $100.
Shakopee Public Utilities (SPU) requires every commercial and industrial customer to post a deposit under SPU Resolution #2023-17. Its Billing, Credit & Collection Policy sets the deposit at one month's average billings and accepts a surety bond in lieu of cash. Premiums cost 2% of the bond amount, $100 minimum.
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How much does a Shakopee 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 long underwriting queue for the standard deposit-in-lieu bond — enter the amount SPU quoted you, pay, and file with SPU. Here is the whole thing:
Apply online
Your business details, the deposit amount SPU calculated for your account, and the effective date — that is the application.
Issued on the spot
No credit check up to $15,000. Larger deposit amounts may get a quick review.
File with SPU
Submit the executed bond to Shakopee Public Utilities in place of the cash deposit so your account clears for connection. SPU releases the bond once the account reaches a five-year good payment history or service ends.
What it is and who needs it.
What the Shakopee utility deposit bond actually covers
Shakopee Public Utilities, the municipal electric and water utility serving Shakopee, Minnesota, requires a deposit from every commercial and industrial customer before it connects permanent service, and from any residential customer who does not hold title to the property — a requirement SPU's governing Commission set under Resolution #2023-17. For a commercial or industrial account, that deposit equals one month's average billings for electric and water combined; SPU bases the figure on your prior usage history, or on a load sheet you submit if the account has none.
SPU's Billing, Credit & Collection Policy — adopted by the Commission and posted at shakopeeutilities.com — allows a customer to furnish a surety bond or irrevocable letter of credit, in a form acceptable to SPU, in place of the cash deposit. The bond guarantees SPU is made whole if the account goes unpaid; unlike a cash deposit it earns no interest while it is outstanding.
Deposits, cash or bonded, stay on the account until service ends or the customer builds a five-year good payment history — no more than three late payments and no disconnection for nonpayment in that span — at which point SPU applies it to the account and, for a bonded deposit, releases the instrument. Enter the deposit figure SPU quoted you; we price the bond at 2% of that amount, $100 minimum, with 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 SPU. Submit the executed bond to Shakopee Public Utilities in place of the cash deposit so your account clears for connection. SPU releases the bond once the account reaches a five-year good payment history or service ends.
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 SPU quoted you — the executed bond is generated instantly, ready to file with Shakopee Public Utilities in place of the cash deposit.
Start the application →Common questions.
Other Minnesota bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Skip the cash deposit, keep your capital.
2% of the bond amount, $100 minimum. Enter the deposit SPU quoted you and file the same day.