A utility deposit is capped at about two months of expected bills in Maryland, Virginia and at Florida Power and Light and Georgia Power. Texas allows the greater of two months or one-fifth of a year. Massachusetts and California go further. In both states, the gas and electric companies under state regulators cannot charge a home a deposit to start service.
So the real answer depends on where you live and how much power your new home uses. It also depends on your payment history. This guide shows the rules in seven places, the math on a sample bill, and the ways people get the deposit waived or paid back.
What a Utility Deposit Is and Why Companies Ask for One
A utility deposit is money the company holds in case you leave without paying. It is not a fee. Every place below that allows one also pays interest on it, though some start the interest only after a waiting period.
The decision can start with a credit check. The deposit page from Florida Power and Light says the company uses a credit scoring system to decide who pays one. That system looks at your credit report and your prior credit history.
Does that check hurt your score? Experian says utility inquiries are only soft inquiries, so they do not hurt your credit scores.
A deposit can also come later. In Maryland, a utility may ask an existing customer for one after a missed payment deadline on a shutoff notice. Florida Power and Light may ask for a deposit adjustment after two or more late payments in six months, if the deposit is $50 or more away from two months of bills.
Why Your Utility Deposit May Be Bigger in 2026
Deposits follow your expected bill. When power gets more expensive, the deposit grows with it.
Power is getting more expensive. The Short-Term Energy Outlook from the U.S. Energy Information Administration, released October 6, 2026, puts the average residential electricity price at 16.5 cents per kilowatthour in 2024. It rose to 17.3 cents in 2025. The agency projects 18.2 cents for 2026 and 18.7 cents for 2027.
That is the current trend. The problem underneath it is old. A move means new utility accounts, and the deposit lands at the worst moment, right next to rent, a moving truck and a landlord deposit.
Renters pay a separate deposit to the landlord too:
15 Security Deposit Alternative Products, Sorted by How They Collect From You
Where These Utility Deposit Rules Come From
Each state sets its own rules. The table further down uses the official text for each one. Massachusetts bans the practice in rule 220 CMR 27.00, which covers gas and electric companies. California regulators did something similar in 2020, as the PG&E deposit rule shows. In Maryland, the Public Service Commission consumer FAQ spells out caps, installments and refunds. Virginia has rule 20VAC5-10-20 on its books. Texas covers retail electric providers in 16 Tex. Admin. Code 25.478. Two rows come from company pages instead, the FPL deposit page and the Georgia Power deposit page.
Utility Deposit Rules in 7 Places, Side by Side
Here is how the seven compare on cost, payment plans, refunds and ways around the charge.
| Place | Top deposit allowed | Pay over time | Refund point | No-deposit routes |
|---|---|---|---|---|
| Massachusetts (gas and electric) | None. No deposit may be required for new or continued service | Not needed | Not needed | Applies to all residential customers |
| California (PG&E, Southern California Edison) | No deposit to establish credit for new residential service | Not needed | Not needed | Applies to residential customers of these companies |
| Maryland | 2/12 of estimated charges for the next 12 months, minimum $5 | $50 or less: no plan required. Under $150: at least 8 weeks. Over $150: at least 12 weeks | 12 months with no shutoff and no more than two late bills | Age 60 or older with proof, or a guaranty the utility accepts |
| Virginia | Estimated cost of two months of use | Three equal monthly payments if over $40 | Should not be held longer than one year with satisfactory credit | Not stated in the rule |
| Texas (retail electric providers) | Greater of two months of bills or one-fifth of the yearly bill | Not stated in the rule | 12 straight bills with no late payment | Any provider: age 65 or older with no late electric account, or family violence certification. Affiliated providers and providers of last resort also accept recent good payment history or a good credit rating |
| Florida Power and Light | Two months of expected use | Not stated on the page | 23 months of service with a clean record, or when the account closes | A guarantor contract |
| Georgia Power | Up to two times the average monthly bill at the home | Not stated on the page | After 12 months of on-time payments, says one part of the page | None. A required deposit cannot be waived |
The Fine Print Behind the Table
The Massachusetts rule covers gas and electric companies only. Water and sewer bills fall outside it.
The Florida and Georgia rows come from company pages, not state rules. Other utilities in those states may differ.
California regulators have enforced their rule. The California Public Utilities Commission said in April 2023 that SoCalGas had improperly billed deposits. The settlement sent $2,086,275 back to residential and small business customers. Southern California Edison says on its own help page that it is not billing residential deposits right now.
Georgia Power has a mixed message. One part of its page promises a refund after 12 straight months of on-time payments. Another answer on the same page says deposits stay for the life of the account. If you pay one there, ask which rule applies to you.
A Worked Example: What a Two-Month Utility Deposit Looks Like
Here is a hypothetical home that uses 900 kilowatthours a month. The math uses only the national average electricity price from the EIA table. Real bills add delivery fees and taxes, so treat these numbers as a floor.
| Measure | At the 2025 price (17.3 cents) | At the 2026 projected price (18.2 cents) |
|---|---|---|
| One month of power | $155.70 | $163.80 |
| Two-month deposit (Maryland, Virginia, FPL style) | $311.40 | $327.60 |
| One-fifth of a year (Texas option) | $373.68 | $393.12 |
| Virginia installment, three payments | $103.80 | $109.20 |
Look at the Texas line. One-fifth of a year is 2.4 months of bills. Since Texas allows the greater number, that option can produce the larger deposit on this sample home.
Honestly, a $393 surprise on move-in week can wreck a budget fast. Nobody plans for a bill that shows up before the lights even come on.
Higher bills also change budget billing plans:
Why Your Budget Billing Went Up: How 6 Big Utilities Recalculate It
How to Avoid a Utility Deposit or Shrink It
None of these steps is guaranteed. Each one comes from a rule or company page above. Here is one order to work through them.
- Check your state first. In Massachusetts, a gas or electric company cannot require a residential deposit. In California, PG&E cannot require one to establish credit for new residential service. A request there is worth questioning with the company.
- Bring your payment history. In Texas, an affiliated provider or a provider of last resort must accept it in place of a deposit. The test: you had electric service in the last two years, you are not behind, and you were late no more than once in the last 12 months.
- Check the age rules. Maryland exempts applicants 60 or older who show proof of age, a lease or deed in their name, and no unpaid utility bill. Every Texas electric provider must accept age 65 or older with no current late account.
- Ask about a guarantor. Florida Power and Light offers a guarantor contract instead of cash. Maryland lets a utility accept a guaranty in place of a cash deposit.
- Ask for installments. Maryland gives at least 8 or 12 weeks on deposits over $50, based on the size. Virginia allows three monthly payments on deposits over $40.
- Write down the refund date. Put it next to your move-in date so it does not slip.
A free tracker with a row for every deposit a utility is still holding keeps that refund from getting lost after a busy move.
How to Get Your Utility Deposit Back
A deposit comes back in one of two ways. The first is a clean payment record. The second is closing the account.
On a clean record, the timing varies a lot. Texas providers refund after 12 straight bills with no late payment. Maryland returns it after 12 months with no shutoff and no more than two late bills. Virginia says a residential deposit should not be held longer than one year once credit is satisfactory. Florida Power and Light waits 23 months.
The deposit also earns interest in these places. Florida Power and Light pays 2 percent, starting six months after the deposit is paid in full. Virginia ties its rate to a one-year Treasury average. Maryland pays simple interest from the day the utility receives the money. Georgia Power pays 3 percent simple interest while it holds the deposit.
When you move out, Maryland applies the deposit and interest to your final bill and refunds the rest. Florida Power and Light also refunds it when the account closes. In Texas, a provider either moves the deposit to your new provider or refunds it.
Refund deadlines matter for other deposits too:
Core Charge Refund Rules at 7 Stores and the Deadlines That Can Cost You the Deposit
What to Ask Before You Pay
Before paying, ask four short questions. What triggered the utility deposit? How was the amount figured? Can it be split into payments? When does it come back?
Write the answers down with the date and the name of the person you spoke to. If the answers do not match your state rules, ask how to file a dispute. In Maryland, for example, the Consumer Affairs Division of the Public Service Commission can investigate a dispute about a deposit request.
Has a utility ever asked you for a deposit you did not expect, and did you get it waived?
Disclaimer: MoneyWisePro is not a utility company or financial advisor. This article is for general information only and is not financial or legal advice. Contact your utility or state utility commission for guidance on your specific situation.
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