Atmos Energy Utility Deposit Bonds
If Atmos Energy has requested a security deposit for your natural gas account, a utility deposit surety bond may provide an alternative to tying up the full deposit amount in cash when Atmos accepts a bond for the account.
Lavon Insurance can help you apply online for an Atmos Energy utility deposit bond based on the deposit amount required for your account.
What Is an Atmos Energy Utility Deposit Bond?
Utilities may require customers to provide financial security before establishing or continuing service. The most familiar form of security is a cash deposit.
A utility deposit surety bond is a financial guarantee issued by a surety company for the benefit of the utility. When accepted, the bond may allow the customer to satisfy the utility’s security requirement without depositing the entire required amount in cash.
The customer remains responsible for paying the natural gas bill. If the surety is required to pay a valid claim under the bond, the bonded customer may be responsible for reimbursing the surety.
The amount of the bond generally corresponds to the security amount Atmos Energy requires for the account, subject to Atmos and surety requirements.
Why Use a Utility Deposit Bond?
Preserve Cash
Instead of placing the full security amount with the utility, an accepted surety bond may allow you to keep more working capital available.
Establish Natural Gas Service
The bond may be used to satisfy an applicable utility security requirement when Atmos Energy approves the bond as an acceptable form of security.
Financial Guarantee
The bond gives the utility a financial guarantee up to the bond amount, subject to the terms of the bond.
Cash Deposit vs. Utility Deposit Bond
Cash Utility Deposit
The customer provides the required deposit directly to the utility.
That money may remain tied up while the deposit is required.
Refund and interest rules depend on the applicable tariff and customer circumstances.
Utility Deposit Surety Bond
The customer purchases a surety bond for the amount required by the utility.
When accepted by Atmos Energy, the bond can provide financial security without requiring the customer to place the entire bond amount with the utility.
The customer pays a bond premium and remains responsible for the underlying utility obligation.
Who May Benefit From an Atmos Energy Deposit Bond?
Commercial Customers
Businesses facing a sizable utility security requirement may prefer to preserve operating cash rather than place the full amount on deposit.
Property Owners & Developers
Owners establishing gas service for a property or project may encounter utility deposit requirements depending on the account and service circumstances.
Other Eligible Customers
Any customer specifically advised by Atmos Energy that an acceptable utility deposit bond may be used can explore the surety option.
How to Get an Atmos Energy Utility Deposit Bond
Confirm the Deposit Requirement
Contact Atmos Energy and determine the security deposit amount required for your account.
Confirm Bond Acceptance
Ask Atmos whether a surety bond is acceptable for your account and obtain any required bond wording or instructions.
Apply Online
Complete the Atmos Energy utility deposit bond application with the required customer and account information.
Provide the Bond to Atmos
Once approved and issued, submit the bond according to the instructions Atmos Energy provides.
Information You May Need
- Legal customer or business name
- Service address
- Atmos Energy account number, if already assigned
- Required utility deposit or bond amount
- Requested bond effective date
- Atmos Energy bond form or instructions, if supplied
- Business ownership information, when applicable
- Financial or underwriting information requested by the surety
Why Might Atmos Energy Require a Deposit?
Atmos Energy may evaluate whether a deposit is required when establishing service. Its online service-start process notes that customer information may be used to determine whether a deposit is necessary.
In Atmos Energy’s Texas Mid-Tex tariff, commercial or industrial customers may be required to provide a deposit sufficient to reasonably protect the utility against the assumed risk.
Deposit requirements can vary based on the customer, account history, service class, service area and applicable tariff. Contact Atmos Energy for the amount and security options applicable to your specific account.
Utility Deposit Bond Assistance
Lavon Insurance helps Texas individuals and businesses obtain utility and other surety bonds through available surety markets.
Apply Online
Start your Atmos Energy utility deposit bond application through our online surety platform.
Preserve Working Capital
When accepted by the utility, a surety bond can help avoid tying up the entire required security amount as a cash deposit.
Personal Assistance
If Atmos provided you with bond instructions or a required amount, contact us if you need help identifying the information needed for the application.
Atmos Energy Utility Deposit Bond FAQs
What is an Atmos Energy utility deposit bond?
Does every Atmos Energy customer qualify to use a bond instead of cash?
How much does the Atmos Energy bond need to be?
Is the bond amount the same as the price of the bond?
Does the bond pay my Atmos Energy bill?
What happens if the surety pays a claim?
Can businesses use an Atmos Energy utility deposit bond?
Can I apply for the Atmos Energy bond online?
Apply for an Atmos Energy Utility Deposit Bond
If Atmos Energy has told you that a surety bond can be used to satisfy your utility security requirement, start your application online through Lavon Insurance.
Bond acceptance, required amount, account eligibility, premium and underwriting requirements vary. Confirm the security requirement and bond acceptance directly with Atmos Energy before purchasing.