FAQsHelpful answers about our plan.


What is the deposit alternative plan (DAP)?

Our plan provides risk management, replacing the need for a deposit when initiating utility service. It provides optimal protection from defaulting customers, since a third party pays and administers default reimbursements.

Who is the target market for this plan?

Our target audience for the deposit alternative plan (DAP) is any utility—in regulated or deregulated markets—that requires customers to post a deposit for activation of utility service. 

What are some of the advantages of using the deposit alternative plan (DAP)?

Lower cost for activation may offer a competitive advantage in deregulated markets, along with reduced cost of managing escrow accounts and refunds, reduced bad debt, and improved customer satisfaction scores.

What’s the benefit for customers?

Our deposit alternative plan (DAP) can reduce (by nearly half) the required out-of-pocket activation cost for a residential customer who may be facing other one-time expenses. 

What’s required to implement the plan?

The straightforward process can be completed in a matter of weeks. Once we receive and analyze your data, we provide rates and conditions, and simple guidelines to integrate our data needs into existing systems. We require no confidential customer information and there is no real time exchange of data. We manage the program from two simple monthly reports and two Automated Clearing House (ACH) transactions.

How easy is it for customers to sign up?

It’s very easy. We weave our process into existing procedures to calculate, collect and explain the currently required deposits. It’s simply a lower-cost, non-refundable alternative. The utility forwards the required payment and enrollment information to Deposit Alternatives in a single monthly Enrollment Report.

What happens if a customer defaults?

The utility submits a single monthly Defaults Reimbursement Report listing unique customer IDs with default amounts. The utility will receive an electronic default reimbursement on a monthly basis.

Is the plan a one-time payment or annual cost?

A one-time charge covers deposits for up to 24 months.

Is the company that backs this plan financially solvent?

Yes, our deposit alternative plan (DAP) is backed by an A.M. Best “A” rated reinsurance carrier.