NES utility deposit bonds.
From $100.
Instead of tying up cash as a security deposit with Nashville Electric Service (NES), a commercial applicant for electric service can post an indemnity (surety) bond for the same amount. NES sizes a commercial deposit at twice the account's average monthly bill; the premium is 2% of the bond amount, $100 minimum.
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How much does an NES 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 underwriting queue for the standard utility deposit bond — enter your amount, pay, and file with NES. Here is the whole thing:
Apply online
Your account or business details, the deposit amount NES set, and the effective date — that is the application.
Issued on the spot
Most applicants have the bond generated as soon as they pay, no waiting. No credit check up to $15,000. Above $15,000, a soft pull may add a short review.
File with NES
Submit the executed indemnity bond to NES in place of the cash deposit on your commercial account. Wet-ink originals mailed whenever the utility insists.
What it is and who needs it.
What the utility deposit bond actually covers
Nashville Electric Service (NES), the electric distributor operated by the Electric Power Board of the Metropolitan Government of Nashville and Davidson County, can require a security deposit on a new or higher-risk account. For commercial customers, NES sizes the deposit at twice the account's average monthly bill (or an estimate if the account is new), held for a minimum of 36 months. Rather than lock up that cash, NES accepts an indemnity (surety) bond equal to the normal cash deposit in its place.
The bond is a payment guarantee in lieu of the cash deposit: it stands behind the electric charges on your account. If the account goes unpaid and the deposit would have covered it, NES can recover against the bond instead of drawing down a cash deposit.
It is not insurance for you — if the surety pays NES, you repay the surety. The advantage is cash flow: you pay a small premium — from $100 — rather than tying up six figures of working capital with the utility for years. Enter the deposit figure NES set on your account and your exact price appears at the application.
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 NES. Submit the executed indemnity bond to NES in place of the cash deposit on your commercial account. Wet-ink originals mailed whenever the utility insists.
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 NES set — the executed indemnity bond is generated instantly, ready to file in lieu of the cash deposit.
Start the application →Common questions.
Other Tennessee bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Utility deposit bond, issued today.
Premiums from $100 — your exact price appears at the application. Enter the deposit NES set and file the same day.