Volunteer Energy Cooperative deposit bonds.
From $100.
Volunteer Energy Cooperative (VEC) sets the security deposit for electric service in its southeast Tennessee territory, and for General Power and industrial accounts over 50 kW its own service policy accepts a surety bond for the same amount in place of cash. The premium is 2% of the bond amount, $100 minimum.
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How much does a Volunteer Energy Cooperative 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 VEC. Here is the whole thing:
Apply online
Your account or business details, the deposit amount VEC 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 VEC
Submit the executed bond to Volunteer Energy Cooperative in place of the cash deposit on your account. Wet-ink originals mailed whenever the cooperative insists.
What it is and who needs it.
What the utility deposit bond actually covers
When you apply for, reconnect, or hold a Volunteer Energy Cooperative electric account, the cooperative can require a security deposit — sized by a credit-risk classification for residential members, and by roughly two months of estimated billing for General Power and industrial accounts. Rather than leave that cash sitting with the cooperative, VEC's own security-deposit policy names a surety bond in the amount of the deposit as an accepted alternative for General Power and industrial consumers over 50 kW, alongside an irrevocable letter of credit or an assigned savings account.
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, VEC can recover against the bond instead of drawing down a cash deposit.
It is not insurance for you — if the surety pays VEC, you repay the surety. The advantage is cash flow: you pay a small premium — from $100 — rather than locking up the full deposit amount. Enter the figure VEC set on your account notice 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 VEC. Submit the executed bond to Volunteer Energy Cooperative in place of the cash deposit on your account. Wet-ink originals mailed whenever the cooperative 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 VEC set — the executed 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 VEC set and file the same day.