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Utility Deposit Surety Bonds

CenterPoint Energy Utility Deposit Bond

A large utility deposit can tie up money that could otherwise remain available for operations, property expenses or other priorities. If CenterPoint Energy permits a surety bond for your account, a utility deposit bond may provide another way to satisfy the required financial security.

Lavon Insurance provides an online application for customers who have been asked to furnish a CenterPoint Energy utility bond.

A Different Way to Meet a Deposit Requirement

Why Consider a Utility Deposit Bond?

When a utility requires financial security, the most familiar solution is to place money on deposit with the utility.

A surety bond works differently. Instead of transferring the entire security amount to the utility, the customer purchases a bond that provides a financial guarantee up to the stated bond amount.

When CenterPoint Energy accepts that arrangement for the account, it may allow the customer to satisfy the security requirement while keeping more cash available elsewhere.

The Key Point

A Bond Is Not a Payment of Your Utility Bill

The customer remains responsible for paying all charges due on the CenterPoint Energy account.

The bond provides security to the utility. If a surety pays a valid claim, the bonded customer may be required to reimburse the surety under the bond and indemnity terms.

Think of the bond as financial backing for the deposit obligation—not as insurance that pays your gas bill.

Common Situations

Who Might Be Asked for a Utility Deposit?

Deposit and credit requirements depend on the customer, service circumstances and applicable CenterPoint Energy rules.

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Commercial Accounts

Businesses establishing or maintaining utility service may be asked to provide financial security depending on credit and account circumstances.

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New Properties & Projects

Developers, property owners or businesses establishing service at a new location may encounter a deposit request during account setup.

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Credit Reestablishment

A customer may face additional credit or deposit requirements when service is being reestablished under certain circumstances.

CenterPoint Energy Credit Requirements

Deposit Requirements Can Vary by Account

CenterPoint Energy’s Texas rules allow the company to require customers to establish satisfactory credit before or during service.

CenterPoint also publishes deposit-waiver options for eligible residential customers, including qualifying guaranty agreements and credit-reference documentation.

Those options are different from a surety bond. If you have specifically been told that a utility deposit bond is acceptable for your account, confirm the required amount and wording before purchasing the bond.

Requirements may differ by customer class, account history, service location and applicable tariff.

Recommended first step: Ask CenterPoint Energy to confirm in writing, if possible, the amount of financial security required and whether a surety bond will satisfy the requirement for your specific account.
From Deposit Request to Bond

How the CenterPoint Energy Bond Process Works

1

Get the Requirement

Obtain the deposit amount and any utility bond instructions associated with your CenterPoint account.

2

Verify Bond Acceptance

Confirm that CenterPoint Energy will accept a surety bond instead of the requested cash security for that account.

3

Submit the Application

Complete the online surety application using the customer, service and required bond information.

4

Deliver the Bond

After approval and issuance, provide the bond to CenterPoint Energy according to its instructions.

Why Businesses Consider Surety

The Business Case for a Utility Deposit Bond

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Retain Liquidity

Keeping cash available can be valuable for payroll, inventory, operating expenses, expansion and other business needs.

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Avoid a Large Cash Hold

When accepted, the bond may satisfy the utility’s security requirement without requiring the entire bond amount to sit on deposit.

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Meet a Utility Requirement

The surety bond provides the financial backing requested by the utility, subject to the bond’s terms and the utility’s acceptance.

Prepare Before Applying

Information to Have Available

Legal customer or business name
CenterPoint Energy service address
Account number, if already established
Required deposit or bond amount
Requested bond effective date
Utility-provided bond wording or form, if any
Business ownership information when applicable
Financial information requested by the surety
Bond Premium

How Much Does a CenterPoint Energy Deposit Bond Cost?

The amount of the bond and the cost of the bond are two different things.

For example, if CenterPoint requires a particular amount of financial security, that amount generally represents the bond’s guarantee—not necessarily the amount you pay.

Your actual premium is determined through surety underwriting. Pricing can depend on the required bond amount, customer or business information, credit characteristics, financial condition and the surety’s underwriting guidelines.

The online application allows the surety to evaluate the account and determine the available premium.

Lavon Insurance

Help With Texas Utility Deposit Bonds

Lavon Insurance provides access to surety solutions for businesses and individuals facing utility deposit requirements.

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Online Application

Apply for the CenterPoint Energy bond through our online surety platform.

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Requirement Review

If you received a utility notice or bond requirement, use that information when completing the application.

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Personal Assistance

If you’re unsure what information the surety needs, contact Lavon Insurance before submitting your application.

Common Questions

CenterPoint Energy Utility Bond FAQs

What is a CenterPoint Energy utility deposit bond?
It is a surety bond that may be used as financial security for a CenterPoint Energy account when CenterPoint accepts a bond in place of the applicable cash deposit requirement.
Does CenterPoint Energy require every customer to pay a deposit?
No. Deposit and credit requirements depend on the customer, account history, customer class and applicable CenterPoint rules. Some customers may establish credit without a deposit.
Can every customer use a surety bond instead of a deposit?
Do not assume that a bond is available for every account. Confirm directly with CenterPoint Energy that a surety bond will be accepted for your specific service account before purchasing one.
How do I know the amount of bond I need?
CenterPoint Energy should identify the amount of financial security required for your account. Use that amount when requesting the surety bond unless CenterPoint instructs you otherwise.
Do I pay the full amount of the bond?
Normally, no. The stated bond amount is the surety’s financial guarantee. The customer pays a premium determined by underwriting.
Does the bond eliminate my obligation to pay CenterPoint?
No. You remain responsible for all charges on the utility account. The bond is security for the obligation rather than a substitute for paying your bills.
What happens if the surety pays CenterPoint under the bond?
A surety bond differs from traditional insurance. Depending on the bond and indemnity agreement, the customer may be required to reimburse the surety for amounts it pays on a valid claim.
Can I buy the CenterPoint Energy bond online?
Yes. Use the online application on this page after confirming that CenterPoint Energy accepts the bond and confirming the required bond amount.
Need to Satisfy a Utility Deposit?

Apply for a CenterPoint Energy Utility Deposit Bond

If CenterPoint Energy has approved a surety bond as security for your account, start the application online and obtain a quote for the required bond amount.

Utility bond acceptance, required security amount, eligibility, premium and underwriting requirements vary by account and surety. Confirm the applicable requirement with CenterPoint Energy before purchasing a bond.