CenterPoint Energy Utility Deposit Bond
A large utility deposit can tie up money you’d rather use for operations, property expenses or other priorities. However, if CenterPoint Energy accepts a surety bond for your account, a utility deposit bond can satisfy the security requirement instead. As a result, you keep more cash available for your business.
Why Consider a CenterPoint Utility Deposit Bond?
When a utility requires financial security, the most familiar solution is a cash deposit. A surety bond, on the other hand, works differently.
Instead of handing over the entire security amount, you buy a bond that guarantees your obligation up to the bond amount. Consequently, when CenterPoint accepts the bond for your account, you satisfy the requirement while your cash stays available elsewhere.
You’re still responsible for every charge on your CenterPoint Energy account. In other words, the bond backs your deposit obligation; it isn’t insurance that pays your gas bill. Furthermore, if the surety pays a valid claim, you’re generally required to repay the surety.
CenterPoint Cash Deposit vs. Deposit Bond
| Feature | Cash Deposit | Utility Deposit Bond |
|---|---|---|
| What you pay up front | The full deposit amount | A bond premium, a fraction of the deposit |
| Who backs the deposit | Your cash, held by CenterPoint | A surety company |
| Impact on cash flow | Money is unavailable until credited back | Keeps working capital free |
| Your monthly bills | You pay them normally | You still pay them normally |
| If CenterPoint makes a claim | CenterPoint applies your deposit | The surety pays, and you repay the surety |
Who Might Be Asked for a CenterPoint Deposit?
Deposit requirements depend on the customer, the service and CenterPoint’s rules. For example:
Commercial Accounts
Businesses starting or keeping service may be asked for security based on credit and account history.
New Properties & Projects
Similarly, developers and businesses opening a new location may face a deposit request during setup.
Reestablishing Service
Likewise, customers reestablishing service may face additional credit or deposit requirements.
How CenterPoint Deposits Work in Texas
CenterPoint Energy delivers natural gas to Texas homes and businesses, and the Railroad Commission of Texas sets gas utility deposit rules in 16 Texas Administrative Code §7.45. For instance, a residential gas deposit can’t exceed one-sixth of estimated annual billings.
In addition, CenterPoint credits the deposit back to your account after 12 consecutive months of on-time payments. Business deposits, however, aren’t subject to the same residential cap, so commercial customers often see larger requests.
- Guaranty agreement from a CenterPoint customer with 12 months of good credit
- Credit reference letter from another gas or electric company
- Submit documents at least three days before the deposit is due
- Deposit credited back after 12 months of on-time payments
Confirm the Requirement First
CenterPoint’s waiver options are different from a surety bond. Therefore, if you’ve been told a bond is acceptable, confirm the details before you purchase it.
Ask CenterPoint Energy to confirm, in writing if possible, the amount of security required and whether a surety bond will satisfy the requirement for your specific account.
In the Houston area, CenterPoint delivers electricity, but your retail electric provider bills you and sets any electric deposit. As a result, an electric deposit usually goes through your provider, such as Reliant.
How the CenterPoint Energy Bond Process Works
Get the Requirement
First, get the deposit amount and any bond instructions for your CenterPoint account.
Verify Bond Acceptance
Next, confirm CenterPoint will accept a surety bond instead of cash for that account.
Submit the Application
Then complete the online surety application with your customer, service and bond details.
Deliver the Bond
Finally, once the bond is issued, provide it to CenterPoint Energy according to its instructions.
How Much Does a CenterPoint Energy Deposit Bond Cost?
The bond amount and the cost of the bond are two different things. For example, if CenterPoint requires $5,000 in security, that $5,000 is the bond’s guarantee, not what you pay.
Instead, your premium is set through surety underwriting, based on the bond amount, your business information, credit and financial condition. Ultimately, the online application lets the surety review your account and quote your premium.
- Legal customer or business name
- CenterPoint Energy service address
- Account number, if already established
- Required deposit or bond amount
- Requested bond effective date
- Utility bond wording or form, if any
- Business ownership information, when applicable
- Financial information requested by the surety
CenterPoint Energy Utility Deposit Bond FAQs
What is a CenterPoint Energy utility deposit bond?
It’s a surety bond used as financial security for a CenterPoint Energy account when CenterPoint accepts a bond in place of a cash deposit.
Does CenterPoint Energy require every customer to pay a deposit?
No. Deposit requirements depend on the customer, account history, customer class and CenterPoint’s rules. In fact, some customers can establish credit without any deposit.
How much can CenterPoint 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 does CenterPoint return my deposit?
CenterPoint credits the deposit to your account after 12 consecutive months of full, on-time payments. If you stop service, it mails the deposit to your forwarding address.
Can every customer use a surety bond instead of a deposit?
Don’t assume so. Instead, confirm directly with CenterPoint Energy that it will accept a surety bond for your specific account before you buy one.
How do I know how much bond I need?
CenterPoint Energy identifies the amount of security required for your account. Generally, use that amount for the bond unless CenterPoint tells you otherwise.
Do I pay the full amount of the bond?
No. The bond amount is the surety’s guarantee. Instead, you pay a premium set by underwriting.
Does the bond eliminate my obligation to pay CenterPoint?
No. You’re still responsible for all charges on the account. In other words, the bond secures the obligation rather than paying your bills.
What happens if the surety pays CenterPoint under the bond?
Unlike insurance, you’re generally required to repay the surety for amounts it pays on a valid claim, under the bond and indemnity agreement.
Can I buy the CenterPoint Energy bond online?
Yes. Once you’ve confirmed CenterPoint accepts the bond and the required amount, simply use the online application on this page.
Other Texas Utility Deposit Bonds
Atmos Energy
Deposit bonds for Atmos Energy natural gas service.
Atmos Energy Deposit Bond →Reliant Energy
Deposit bonds for Reliant electric service.
Reliant Energy Deposit Bond →All Utility Bonds
Compare electric, gas and water deposit bonds in Texas.
Utility Deposit Bonds →Apply for a CenterPoint Energy Utility Deposit Bond
If CenterPoint Energy has approved a surety bond for your account, start the application online and get a quote for your required bond amount.
Bond acceptance, required security amount, eligibility, premium and underwriting vary by account and surety. Confirm the requirement with CenterPoint Energy before purchasing a bond. Lavon Insurance is an independent agency and is not affiliated with CenterPoint Energy.