NYSEG utility deposit bonds.
2% of the bond amount.
New York State Electric & Gas can require a nonresidential customer to post a security deposit before or during service — but under 16 NYCRR § 13.7, NYSEG must accept a surety bond as an alternative to a cash deposit. NYSEG calculates the deposit amount from your usage; the premium is 2% of the bond amount, $100 minimum, and the application collects no credit information.
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Apply to filed in one sitting.
No long underwriting queue for the standard utility deposit bond — enter your amount, pay, and send the executed bond to NYSEG. Here is the whole thing:
Apply online
Your account details, the deposit amount NYSEG calculated, and the effective date — that is the entire application.
Issued on the spot
The application collects no credit information, so most utility deposit bonds generate the moment you pay. Larger amounts may get a quick review that never affects your score.
File with NYSEG
Submit the executed bond to satisfy your NYSEG deposit requirement in place of cash. Wet-ink originals mailed whenever NYSEG insists.
What it is and who needs it.
What the utility deposit bond actually does
A New York nonresidential gas, electric, or steam utility can require a customer to post a security deposit — as a new customer, or as an existing customer who is delinquent, whose financial condition suggests a risk of future default, or in similar circumstances defined by the Public Service Commission's rules. NYSEG calculates the deposit from your billing history: 16 NYCRR § 13.7(b) caps it at twice your average monthly usage, or twice peak-season usage for accounts (like space-heating or industrial processors) whose usage varies widely.
Rather than tying up that amount in cash, 16 NYCRR § 13.7(d)(1) requires NYSEG to accept a deposit alternative that provides security equivalent to cash — an irrevocable bank letter of credit, or a surety bond. This bond guarantees NYSEG's payment if your account goes unpaid, up to the deposit amount NYSEG calculated.
It's a three-party arrangement: you (the principal), the surety carrier, and NYSEG (the obligee). It is not insurance for you — if the surety pays a claim, you repay the surety. Unlike a cash deposit, the bond earns you no interest credit, but it frees the cash for your business instead.
You need this bond if you are
One application, issued on the spot.
Submit the application with the deposit amount NYSEG calculated — the executed bond is generated instantly, ready to file.
Start the application →Common questions.
Other New York bonds.
NYSEG deposit bond, issued today.
2% of your bond amount, $100 minimum, no credit section. Enter your deposit amount and file the same day.