A Utility Bond is sometimes required by utility companies as part of the agreement between the utility company and another entity who is trying to buy utilities. A California Utility Payment Bond can be required instead of putting down a cash deposit as a cheaper alternative to the utility company. The bond basically states that the applicant will pay all of their utility bills on time. This protects the utility company from financial loss and harm as a result of non-payment of utility bills.
The utility companies in California that will require this bond are:
When you apply for this bond, you can select which company you are applying with.