Atmos Energy Utility Deposit Bonds
Has Atmos Energy asked for a security deposit on your natural gas account? If Atmos accepts a bond for your account, a utility deposit surety bond can take the place of that cash deposit, with bonds starting at just $100. As a result, you keep your money working for your home or business. Better yet, Lavon Insurance is based right here in Atmos Energy’s North Texas service area.
What Is an Atmos Energy Utility Deposit Bond?
Before starting or continuing gas service, a utility may require financial security. Usually, that means a cash deposit.
A utility deposit surety bond, by contrast, is a financial guarantee a surety company issues for the utility’s benefit. Consequently, when Atmos accepts the bond, you meet the security requirement without handing over the full deposit. In most cases, the bond amount matches the deposit Atmos requires for your account.
Keep in mind, however, that you still pay your gas bill every month. Moreover, if the surety pays a valid claim, you’re generally required to repay the surety.
First, confirm with Atmos Energy that a surety bond is acceptable for your specific account. Then get the required bond amount, along with any instructions or bond form Atmos provides.
Why Use an Atmos Energy Deposit Bond?
Preserve Cash
Instead of placing the full deposit with Atmos, an accepted bond starting at $100 keeps more working capital in your hands.
Start Gas Service
Once Atmos approves the bond as security, it can satisfy the deposit requirement on your account.
Financial Guarantee
Likewise, the bond gives Atmos a guarantee up to the bond amount, subject to the bond’s terms.
Atmos Cash Deposit vs. Utility Deposit Bond
| Feature | Cash Deposit | Utility Deposit Bond |
|---|---|---|
| What you pay up front | The full deposit amount | A bond premium, starting at $100 |
| Who backs the deposit | Your cash, held by Atmos | A surety company |
| Impact on cash flow | Money stays tied up while the deposit is required | Keeps working capital free |
| Your monthly gas bills | You pay them normally | You still pay them normally |
| If Atmos makes a claim | Atmos applies your deposit | The surety pays, and you repay the surety |
Why Might Atmos Energy Require a Deposit?
When you start service, Atmos Energy may use your customer information to decide whether a deposit is needed. For commercial and industrial customers, Atmos’s Texas Mid-Tex tariff allows a deposit large enough to reasonably protect the utility against the assumed risk.
Meanwhile, the Railroad Commission of Texas sets gas utility deposit rules in 16 Texas Administrative Code §7.45. Because business deposits aren’t capped like residential ones, commercial customers often face the largest requests, which is exactly where a bond helps most.
- Residential deposits can’t exceed one-sixth of estimated annual billings
- Residential deposits are refunded with interest after 12 consecutive bills paid on time
- A satisfactory guarantee, credit rating or recent utility payment history can avoid a residential deposit
- Residential applicants 65 or older with no unpaid utility balance may avoid a deposit
- Deposits earn interest at a rate set by law
Who Can Benefit From an Atmos Energy Deposit Bond?
Restaurants & Businesses
Restaurants, laundromats, manufacturers and other heavy gas users often face the biggest deposits.
Builders, Owners & Developers
Similarly, new construction across North Texas can mean several gas accounts and deposits at once.
Other Eligible Customers
In addition, any customer Atmos advises can use an acceptable bond may explore the surety option.
How to Get an Atmos Energy Utility Deposit Bond
Confirm the Deposit
First, contact Atmos Energy to find out the deposit amount required for your account.
Confirm Bond Acceptance
Next, ask whether a surety bond is acceptable and get any required wording or instructions.
Apply Online
Then complete the Atmos Energy bond application with your customer and account details.
Provide the Bond to Atmos
Finally, once the bond is issued, submit it according to Atmos Energy’s instructions.
How Much Does an Atmos Energy Deposit Bond Cost?
Atmos Energy deposit bonds through Lavon Insurance start at just $100. Keep in mind, though, that the bond amount and the price of the bond aren’t the same. For example, if Atmos requires a $3,000 deposit, the bond guarantees $3,000, but you only pay the premium.
Above the $100 starting price, your premium depends on the bond amount, your credit, any business financial information and the surety’s underwriting. Therefore, the fastest way to see your exact price is to apply online.
- Legal customer or business name
- Service address
- Atmos Energy account number, if assigned
- Required deposit or bond amount
- Requested bond effective date
- Atmos bond form or instructions, if supplied
- Business ownership information, when applicable
- Financial information requested by the surety
Atmos Energy Deposit Bonds in Lavon, Wylie, Rockwall and North Texas
Atmos Energy’s Mid-Tex Division serves much of North Texas. As a local, independent agency in Lavon, we help homeowners and businesses with Atmos deposit bonds throughout Collin, Rockwall, Hunt and Dallas counties, including:
- Lavon
- Wylie
- Nevada
- Princeton
- Farmersville
- Royse City
- Rockwall
- Rowlett
- Sachse
- Murphy
- Josephine
- Greenville
- Melissa
Gas service areas vary by address. Confirm with Atmos Energy that it serves your location.
Atmos Energy Utility Deposit Bond FAQs
What is an Atmos Energy utility deposit bond?
It’s a surety bond that provides financial security to Atmos Energy in place of a cash utility deposit, when Atmos accepts a bond for your account.
Does every Atmos Energy customer qualify to use a bond instead of cash?
No. Acceptance depends on the account type, service area, tariff, Atmos Energy’s requirements and surety underwriting. Therefore, confirm acceptance with Atmos before you buy a bond.
How much does the Atmos Energy bond need to be?
The bond amount should match the security requirement Atmos Energy sets for your specific account. In other words, there’s no standard amount for every customer.
Is the bond amount the same as the price of the bond?
No. The bond amount is the guarantee provided to Atmos. Instead, you pay a premium based on the surety’s underwriting.
How much does an Atmos Energy deposit bond cost?
Atmos Energy deposit bonds start at $100. Your exact premium depends on the bond amount, your credit and the surety’s underwriting.
How much can Atmos charge for a residential gas deposit in Texas?
Under Railroad Commission of Texas rules, a residential gas utility deposit can’t exceed one-sixth of the estimated annual billings.
When is a Texas residential gas deposit refunded?
Under Railroad Commission rules, a residential deposit plus interest is refunded after 12 consecutive bills paid without a nonpayment disconnection, as long as the account is current.
Does the bond pay my Atmos Energy bill?
No. You’re still responsible for paying your gas bills. The bond is a guarantee for Atmos’s benefit, not a substitute for paying the account.
What happens if the surety pays a claim?
Unlike insurance, if the surety pays a valid claim, you’re generally required to repay the surety under the indemnity agreement and bond terms.
Can businesses use an Atmos Energy utility deposit bond?
Yes. In fact, a deposit bond is especially useful for restaurants and other commercial customers facing a large deposit, as long as Atmos accepts the bond for the account.
Do you help Atmos Energy customers near Lavon and Wylie?
Yes. Lavon Insurance is a local agency in Lavon, and we help Atmos Energy customers throughout North Texas, including Wylie, Rockwall, Royse City, Murphy, Sachse and Princeton.
Can I apply for the Atmos Energy bond online?
Yes. Once you’ve confirmed the required bond amount and any Atmos instructions, simply use the online application on this page.
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Utility Deposit Bonds →Apply for an Atmos Energy Utility Deposit Bond
Bonds start at just $100. If Atmos Energy has told you a surety bond can satisfy your deposit, start your application online today, or call our Lavon office for help.
Bond acceptance, required amount, eligibility, premium and underwriting vary. Confirm the security requirement and bond acceptance directly with Atmos Energy before purchasing. Lavon Insurance is an independent agency and is not affiliated with Atmos Energy.