South Jersey Gas utility deposit bonds.
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South Jersey Gas can require a security deposit from a new customer, or one whose credit with SJG has lapsed, and its tariff allows a guarantee instead. A surety bond sized to the deposit, normally two times your average monthly gas bill, counts only if SJG agrees to take it. We return a quote, usually within one business day.
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How much does a South Jersey Gas utility 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 deposit notice to bond on file.
South Jersey Gas sets the deposit; the bond stands in for it once SJG agrees. Here is the whole process, start to finish:
Confirm SJG will take a bond
The tariff lets South Jersey Gas accept an “other guarantee satisfactory to the Company” instead of cash, but it does not name surety bonds. Call SJG customer service, or the Business Services Team for a commercial account, and confirm it will accept a bond for your deposit and whether it uses its own bond form.
A surety specialist quotes it
Apply online with the deposit amount, the service location address and your details. A specialist reviews the file and returns your premium. The bond issues the moment you pay — no credit review of any kind, not even a soft pull. No obligation until you accept the quote.
Deliver it to South Jersey Gas
Once you accept and pay, the executed bond is issued to South Jersey Gas Company as obligee, ready to deliver against your account in place of the cash deposit. Wet-ink originals mailed on request.
What it is and who needs it.
What the South Jersey Gas deposit bond actually does
South Jersey Gas Company, headquartered in Atlantic City, delivers natural gas under a tariff approved by the New Jersey Board of Public Utilities — B.P.U.N.J. No. 14 — Gas, effective with service on and after January 1, 2023. Its territory covers communities in Atlantic, Cape May, Cumberland and Salem counties and parts of Burlington, Camden and Gloucester counties.
Section 2.4 of the tariff’s General Terms and Conditions, Deposit and Guarantee, lets SJG require “a reasonable deposit or other guarantee satisfactory to the Company” from any new or existing customer who has not established credit with the Company, or whose credit has become impaired. The initial deposit equals two times the average monthly charge for the service over a 12-month period and secures payment of future and final bills. A surety bond is an “other guarantee” only if SJG finds it satisfactory — the tariff does not name bonds — so the first step is always to confirm SJG will take one.
The tariff defines the credit tests. Credit is impaired if any bill was not paid before the next month’s bill was prepared, and established once twelve months of bills were paid on that schedule — or, for a new customer, by a letter of reference from another utility or a source SJG accepts. SJG reviews a residential account at least once a year and a non-residential account at least once every two years, and refunds the deposit once credit is established. Where the tariff conflicts with the New Jersey Administrative Code, the Code prevails: under N.J.A.C. 14:3-3.4(d), an existing customer can be asked for a new or larger deposit after failing to pay a bill within 30 days of its due date.
It is not insurance for you. If the surety pays South Jersey Gas, you repay the surety. A cash deposit earns Board-set interest and a bond does not; the benefit of the bond is that the cash stays in your business instead of sitting with the utility until your account is reviewed.
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
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
Deliver it to South Jersey Gas. Once you accept and pay, the executed bond is issued to South Jersey Gas Company as obligee, ready to deliver against your account in place of the cash deposit. Wet-ink originals mailed on request.
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.
These are the actual fields: the deposit amount South Jersey Gas required, the effective date, the service location address, your entity type and business address, and a contact. A surety specialist reviews it and returns a quote, typically within one business day. Free until your bond is issued.
Start the application →Common questions.
Other New Jersey bonds.
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Keep your deposit working.
Once South Jersey Gas confirms it will take a bond, send us the deposit amount and a surety specialist quotes it — typically within one business day. Free until issued.