Public Service Company of New Mexico - Electric Utility Deposit — required surety bond in New Mexico. Apply online in minutes.
The Public Service Company of New Mexico (PNM) Electric Utility Deposit Bond is a financial guarantee used instead of a cash deposit to secure commercial electric service. It guarantees that the bonded business will pay all utility bills on time and in full. If the business fails to pay for its electric usage, the bond ensures PNM can recover the owed funds.
This bond is typically needed by commercial businesses, contractors, and developers setting up new or expanded electric service with PNM in New Mexico. Companies that prefer to keep their capital liquid rather than tying it up in a cash deposit often choose to post this surety bond.
The utility company requires this bond to protect themselves from financial loss if a commercial customer defaults on their electric bills. It provides a layer of security ensuring the utility is compensated for the power provided to the business. Requirements vary by account, so businesses must verify their specific deposit obligations directly with PNM.
To get your utility bond, click Apply Now to complete our secure, approximately 5-minute online application. Once your application is processed by Noah Insurance Agency, your finalized bond will be delivered straight to your email. You can then submit it directly to the Public Service Company of New Mexico.
Premiums vary based on the specific bond amount required by the utility and the applicant's credit profile. You can apply online with Noah Insurance Agency to receive an exact quote for your business.
This surety bond option is generally intended for commercial accounts, but eligibility and specific guidelines vary. You should verify your ability to use a bond in lieu of cash directly with the Public Service Company of New Mexico.
If you default on your utility payments, PNM can file a claim against your bond to recover the unpaid balance. You are then financially responsible for reimbursing the surety company for any valid claims paid on your behalf.
The required duration varies depending on your ongoing payment history and the utility's internal policies. Contact PNM directly to verify how many consecutive on-time payments are required before the bond can be released.
Send us a note or call 814-718-0060 — a licensed agent will confirm the bond amount and requirements for you.
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