When I move to my next home.My electric company gave me a letter of credit. What can I do with this letter?

Question

When I move to my next home.My electric company gave me a letter of credit. What can I do with this letter?

Answer 1

The other answer is almost right. Most utilities will require a (sometimes substantial) deposit if you can't provide a letter of credit from another utility; how long it is held depends upon the utility company's policies (call the new utility company to find out). Some will hold it as long as you have the account, while others may return it after some defined period of time as long as all your payments are on time.

Answer 2

When you ask for a new electric account at your new home they will ask you for proof of a credit history and you can use that letter to show you have a good record of paying your electric bill.

Otherwise they may ask for a deposit that they hold for like six months.