Florida Utility Deposit Bond
A Florida utility deposit bond lets a business post a bond, sized to whatever FPL, Duke Energy Florida, TECO, or JEA demands in writing, instead of tying up cash for months. For three of those four utilities, the deposit itself is capped by state law at 2 months of charges under Fla. Stat. §366.05(1)(c) — JEA, as a municipal utility outside Public Service Commission jurisdiction, sets its own policy instead.
The four utilities don't calculate, review, or release deposits the same way. This page compares them side by side so you know which rules govern your account before you call in the deposit demand.
Have the deposit letter in hand? Call 1-844-810-BOND and tell us which utility sent it.
- Who requires it: Your utility (such as FPL, Duke, TECO or JEA), under Fla. Stat. §366.05, in place of a cash deposit.
- Amount: Set by the utility, usually about 2x your average bill.
- Timing: Same-day submission; most quotes within one business day.
A state law caps three of Florida's big four utilities — not the fourth
Most utility deposit bonds run on pure utility discretion — no statute sets the number, the tariff does. Florida is the exception, and only partially. Fla. Stat. §366.05(1)(c), effective January 1, 2016, puts a hard ceiling on deposits collected by any utility under Florida Public Service Commission jurisdiction: 2 months of charges. For an existing account, that's 2 months of average actual charges pulled from the trailing 12-month billing history. For a new account with no history, it's 2 months of projected charges. FPL, Duke Energy Florida, and TECO — all investor-owned, all FPSC-regulated — are bound by that ceiling.
JEA is not. As a municipal utility owned by the City of Jacksonville, JEA falls outside FPSC rate jurisdiction entirely — the Commission has no authority to cap what JEA charges for a deposit. JEA's own commercial deposit program happens to land in a similar place (roughly 2x monthly billed consumption with usage history), but that number comes from JEA's board-approved policy, not from Chapter 366. If JEA's board changed its multiple tomorrow, no PSC filing would be required.
Official Florida Requirements
"For an existing account, the total deposit may not exceed 2 months of average actual charges, calculated by adding the monthly charges from the 12-month period immediately before the date any change in the deposit amount is sought, dividing this total by 12, and multiplying the result by 2. For a new account, the total deposit may not exceed 2 months of projected charges."The Florida Senate — 2024 Florida Statutes • Fla. Stat. §366.05(1)(c)
This is also why the bond amount tracks whichever figure the utility actually demands, not a formula you calculate yourself — the deposit letter already reflects the statutory cap (or JEA's policy) before it reaches you. Haven't received the letter yet? Our utility deposit bond calculator applies the same §366.05(1)(c) 2-month math to your average bill so you know roughly what to expect. Once you have the actual figure, sanity-check the resulting premium with the financial guarantee bond calculator, or read the surety bond cost guide for what drives rate on a payment-guarantee bond.
FPL vs. Duke Energy Florida vs. TECO vs. JEA
Four different deposit systems, one state. Here is how each utility calculates the deposit, what it accepts as an alternative to cash, and how it reviews or releases the amount once you're on the books — each pulled from that utility's own published policy.
Florida's big four utility deposit tariffs, compared
Regulator, deposit formula, bond acceptance, and review cycle by utility
| Utility | Regulator | Deposit formula | Alternative to cash | Review / release |
|---|---|---|---|---|
| FPL (Florida Power & Light) | FPSC (investor-owned) | ~2x average monthly bill | LOC, surety bond, or other collateral (≥$1,000 recommended) | 23 months continuous service + 12 months on-time |
| Duke Energy Florida | FPSC (investor-owned) | ~2x average monthly bill (annual review) | Letter of credit or surety bond (confirm current threshold) | Shortfall re-billed annually; credited back after 9 months on-time |
| TECO (Tampa Electric) | FPSC (investor-owned) | Square footage & business type, capped at 2 months projected | Irrevocable letter of credit or surety bond | Reviewed on request after 12 months |
| JEA (Jacksonville) | Municipal — not FPSC-regulated | 2x monthly billed consumption average (or flat minimum, no history) | Indemnity/Surety Bond Deposit Form or letter of credit | Set by JEA policy, not published on a fixed cycle |
Sources: fpl.com/rates/business-deposits.html · tampaelectric.com/business/start-service/deposit-options/ · jea.com/business_resources/commercial_deposit_information/ · Fla. Stat. §366.05(1)(c) · Fla. Admin. Code R. 25-6.097. Duke Energy Florida's review cadence per company statement; confirm current terms with Duke's credit department.
Don't see your utility — a rural electric co-op or a smaller municipal system? Call and read us the deposit letter; if the utility accepts bonds at all, we can confirm the form.
From deposit letter to the right utility's bond form
Because each of the four utilities names itself as obligee on its own paperwork, the sequence starts with identifying which one sent the demand:
1. Get the deposit demand in writing
The letter from FPL, Duke Energy Florida, TECO, or JEA stating the exact dollar figure — this becomes the bond’s penal sum.
2. Confirm which form that utility uses
FPL and TECO both call it a "surety bond" on their own deposit pages; JEA calls its version an "Indemnity/Surety Bond Deposit Form." The wording matters when the bond is issued.
3. Legal business name exactly as billed
Must match the name on the utility account or acceptance gets delayed at the credit department.
4. Account number and service address
The specific meters and services the deposit — and the bond — will secure.
5. Owner consent to a credit review
This guarantees payment of bills, so the carrier reviews the owner’s credit; larger amounts may need business financials.
6. Any prior utility defaults or bond claims
Disclose up front for any of the four utilities — carriers verify against utility records before binding.
What a bond changes — and what it doesn't
A bond substitutes for the cash the statute (or JEA's policy) already fixed — it doesn't change the amount, and it doesn't exempt you from the underlying deposit demand. What it changes is where your capital sits: with a bond, the deposit figure stays as working capital in your business instead of earning 2–3% at FPL or Duke while it sits with the utility for up to 23 months.
Non-payment still draws a claim on the bond, the same way it would draw against a cash deposit. The surety pays the utility, then collects the full amount from you under your indemnity agreement. General claim mechanics, cancellation rules, and who else on this site posts payment-guarantee bonds are covered on the utility deposit bonds hub.
Know your deposit figure and which of the four utilities sent it? Get it matched with a bond.
Quote my Florida deposit bondOther Florida commercial bonds
Businesses bonding a utility deposit often carry other Florida license or payment-guarantee bonds too. Start at the full Florida surety bond catalog, or jump to an adjacent product:
Questions specific to Florida's FPL / Duke / TECO / JEA deposit rules
Does Florida law actually cap how big a utility deposit can be?
For three of the four utilities on this page, yes. Fla. Stat. §366.05(1)(c) — effective January 1, 2016 — caps a deposit at 2 months of charges: for an existing account, 2 months of average actual charges from the trailing 12-month billing history; for a new account, 2 months of projected charges. That ceiling binds every utility under Florida Public Service Commission (FPSC) jurisdiction, which is why FPL and Duke Energy Florida both describe their deposit as roughly "2x your average monthly bill." It does not bind JEA — see the next question.
Why doesn’t the 2-month cap apply to JEA?
Because JEA isn’t an investor-owned utility under FPSC rate jurisdiction — it’s a municipal utility owned by the City of Jacksonville, and the Florida Public Service Commission has no authority over a municipal utility’s rates or deposit policy. JEA sets its own deposit rules by board-approved resolution, not by Chapter 366. In practice JEA lands in a similar place — its own commercial deposit page describes "two (2) times the monthly billed consumption average" for accounts with usage history — but that number is policy, not statute, and JEA’s board could change it without going through the PSC the way FPL, Duke, or TECO would have to.
FPL and Duke Energy Florida both cite "2x the average bill." Why does TECO calculate deposits differently?
TECO’s own business deposit page bases the figure on "square footage and business type" rather than quoting a multiple of prior billing — sensible for a new commercial account with no billing history to average. That doesn’t put TECO outside the law: §366.05(1)(c) still caps a new account’s deposit at 2 months of projected charges, so square footage and business type are simply TECO’s method for estimating what those projected charges will be before the statutory ceiling is applied. FPL and Duke, by contrast, lead with the 2-month multiple directly because they’re describing the post-cap number, not the estimation method.
If I bond instead of paying cash, do I get money back the way FPL’s 23-month cycle promises?
No — a bond isn’t a deposit sitting with the utility, so there’s nothing to refund. The refund-cycle comparison matters for the opposite question: whether it’s worth bonding at all versus just paying cash and waiting it out. FPL and the FPSC’s own Rule 25-6.097 both center on a 23-month cycle — nonresidential customers become eligible for a refund, or the utility can instead pay 3% annual interest, once 23 months of continuous service have passed. Duke Energy Florida runs a shorter annual-review cycle: if the deposit on file falls under 2x your average bill, the shortfall gets billed, but Duke states that added amount can be credited back after nine months of good payment — a different mechanic than a full deposit refund. TECO reviews on request after 12 months. None of those cycles apply to a bond, which is exactly the point: the cash stays in your business the whole time instead of sitting with any of the four utilities.
Do FPL, Duke Energy Florida, TECO, and JEA all use the same bond paperwork?
No — each utility names itself as obligee on its own form. FPL’s business-deposit page lists a "Surety Bond from their insurance company" alongside a letter of credit as alternatives to cash, generally recommended once the deposit exceeds $1,000. TECO’s deposit-options page accepts "an irrevocable letter of credit" or "a surety bond" directly. JEA’s commercial deposit program names its own "Indemnity/Surety Bond Deposit Form." A bond written for FPL doesn’t transfer to Duke Energy Florida if you relocate across their service-territory line — confirm the receiving utility’s current form before you apply.
I already paid a cash deposit — can I switch to a bond later and get my cash back?
Usually, yes, but the timeline runs on the utility’s refund cycle, not the bond’s issue date. Call the credit or new-service department, tell them you want to post a bond in place of the existing cash deposit, and ask them to process the swap — most will release the cash once the bond is on file rather than making you wait out the full 23-month FPL/Rule 25-6.097 cycle or Duke’s annual review. Get the release confirmation in writing before you consider the switch complete.
All content is researched from official state and federal sources (.gov). BuySuretyBonds.com works with Treasury-listed surety carriers.
General information, not legal or underwriting advice. Fla. Stat. §366.05(1)(c) governs FPSC-jurisdictional utilities only — JEA and other municipal or cooperative utilities set their own deposit policy. Confirm the current deposit figure, accepted alternatives, and review timeline directly with your utility's credit department before applying.
FPL, Duke, TECO, or JEA — keep the cash either way
Tell us which utility sent the demand and the dollar figure on it. We'll match it with a bond on that utility's own form — most Florida utility deposit bonds issue electronically, often the same day.