"My utility deposit is gone or rolled into the final bill." Probably not, and there is interest you may be owed.
The standard assumption is that a utility deposit either earns nothing, disappears into a final bill, or is forfeited if you forget to ask. None of those is correct under US state regulation. Every state PUC or PSC requires the utility to hold the deposit in an interest-bearing account and refund it, with interest, on a fixed schedule.
Most US utilities refund automatically after about 12 months of on-time payment, or on the final bill at move-out. The interest is small per year, typically $4 to $18 on a deposit of $100 to $300, but it has compounded since the deposit was first held. On long-term tenants who paid a deposit five or ten years ago and never moved, the missing interest can be material.
The catch is enforcement: about half of US utilities itemize the interest on the refund statement, the other half quietly hold the principal interest-free until the customer asks. The fix is to ask in writing, citing your state PUC rule.
When the deposit comes back
A US utility deposit has three standard refund triggers. Any one of them returns the principal plus accrued interest, and one of them does not require a move.
Auto-refund after 12 months
After roughly 12 months of on-time payment with no service disconnection, most utility tariffs trigger an automatic refund as a one-time bill credit or check. One allowed late payment per 12 months generally does not reset the clock, a returned check usually does.
On the final bill at move-out
When you close service, the utility nets the deposit and accrued interest against any closing balance. The remainder is refunded to the forwarding address on file, by check or ACH. The interest portion must be itemized on the closing statement.
On written request, any time
After 12 months of good standing, you can request a refund-on-request without moving. The utility must produce a written accounting of principal, dates held, interest rate applied and total interest owed. Every state PUC will compel the utility to deliver this if asked.
What your state actually requires
Every state regulator publishes a deposit interest rule. The index, the rate and the payout schedule are state-specific. Below is the rule and 2026 rate for the ten largest US energy markets.
| State | PUC rule cite | Interest rate index | How paid |
|---|---|---|---|
| Texas | PUCT 25.24(g) | Treasury one-year constant maturity, rounded up; ~4.7% (2026) | Annual credit, or lump sum on final bill |
| New York | 16 NYCRR 56.7 | Greater of Treasury 1-year rate or 5.25% floor | Annual statement credit, refund on close |
| Illinois | ICC 280.70 | Average prime rate minus 1%, ICC-published; ~6.5% (2026) | Annual credit on bill, refund on close |
| California | CPUC GO 96-B + tariff rule 7 | CPUC commercial paper index; ~5.1% (2026) | On final bill, or after 12 mo. of on-time payment |
| Pennsylvania | 52 Pa. Code 56.57 | Pa. legal rate of interest, fixed by PaPUC; 6.0% (2026) | Annual credit, refund on close |
| Ohio | OAC 4901:1-17-05 | 3% PUCO statutory floor; many utilities pay ~5% | On final bill or after 12 mo. of on-time payment |
| Massachusetts | DPU 18-93 | Average savings-bank passbook rate; ~4.0% (2026) | Annual credit on bill, refund on close |
| New Jersey | NJAC 14:3-7.5 | BPU-published rate, tied to Treasury 1-yr; ~4.6% (2026) | Annual credit, refund on close |
| Maryland | PSC General Order 7.3 | PSC-published deposit interest rate; ~5.0% (2026) | On final bill or after 12 mo. of on-time payment |
| Florida | FPSC 25-6.097 | FPSC published rate, currently 2% (above 23 months: 7%) | Annual credit, refund on close |
Rates published by each state commission, May 2026. Texas PUCT, New York PSC, Illinois ICC, California CPUC, Pennsylvania PaPUC, Ohio PUCO, Massachusetts DPU, New Jersey BPU, Maryland PSC, Florida FPSC. Pegged-rate states float with Treasury short rates and reset annually.
Why deposits go unrefunded
When a refund does not arrive, one of four root causes is almost always at work. Each is fixable in writing within 30 to 45 days.
No forwarding address on file
The most common cause. The check is issued promptly, then mailed to the empty old apartment, where it sits or is returned undeliverable. Provide a forwarding address in writing when you close the account, not just to the post office.
Final bill absorbs the deposit, no interest line
The utility nets the deposit against the closing balance and issues a single credit or check, with no separate line for the interest accrued. The interest portion is still yours, ask for a written deposit accounting and the line will be added.
Auto-refund triggered, ACH bounced
A 12-month auto-refund was issued by ACH to the bank account on file. If that account was closed or changed in the meantime, the ACH bounces and the refund sits as an unclaimed credit. Call the utility and ask them to reissue by check or to a current bank account.
Account in a name no longer on the lease
Deceased account holder, divorce, roommate moved out. The refund goes to the legal name on the account, not to whoever paid the bill last. Update the account holder of record in writing well before close, with supporting documentation.
How to claim the interest you are owed
A 4-line written request, sent to the utility's customer service or deposits team, moves the accounting team faster than any phone call. Compare the two paths below.
| Outcome | Without the written request | With the written request |
|---|---|---|
| Principal refund | Auto-credited if the system flags it | Guaranteed, with paper trail |
| Interest itemized | Often missing or hidden in a netted total | Required, must show rate and dates |
| Time to resolve | Variable, often months | 30 days, per most state PUC rules |
| Escalation to PUC | Hard to prove without records | One-click, attach the request |
The 4-line template
Email or write to your utility's customer service or deposits department. Reference your state PUC rule by citation, the rule itself is your leverage.
Subject: Security deposit accounting under [state PUC rule cite]
Body: Account number, date deposit was paid, principal amount, interest accrued to date, total balance owed to me.
Forwarding address for refund: [your new address].
Please respond in writing within 30 days, per [PUC rule].
Cite the actual rule for your state from the table above. The reference is what moves the utility's deposits team out of the default auto-handling queue and into a manual review.
What documentation the utility wants
Four pieces of information let the utility find your deposit in seconds. Have them ready when you send the written request.
First
Account number
Second
Deposit-paid date
Third
12 months of payment history
Fourth
Forwarding address
Three lessons from "ask in writing"
- A written request creates a paper trail the utility's compliance team has to acknowledge, while a phone call is logged only as a call duration;
- Citing the state PUC rule by exact number routes the request to the deposits team, not the general billing queue, and shortens the response window;
- Always attach a forwarding address inside the email body, not just on a separate post-office change of address, because mailroom handling is independent of the utility's account system.
Four things most deposit guides skip
Each one is the difference between a clean refund and a missing one.
The 12-month "good payment" trigger is not the same as on-time payment
Most utility tariffs tolerate one late payment per 12 months without resetting the auto-refund clock, so long as the lateness was cured within the grace period. A returned check or ACH reversal, by contrast, almost always resets the clock to zero in the utility's system. Check the tariff language in your state.
State PUC rate is a floor, not a ceiling
PUC rules set a minimum interest rate the utility must pay on a held deposit. Some utilities pay above the floor as a customer-service policy, especially in competitive retail states where service quality scores influence renewal. If a neighbor reports a higher rate at the same utility, ask why your accounting shows the floor.
A third-party payer does not own the refund
If the deposit was paid by a parent, a relocation company or an employer guarantor, the refund still goes to the account holder of record, not to the original payer, unless the payer was formally assigned the refund in writing at the time the deposit was paid. To reassign later, both parties must sign a written request.
PUC complaints are free, fast, and they work
Most state commissions resolve consumer complaints in 30 to 45 days. The filing is online, free and short. The threat of a PUC docket moves the utility's accounting team faster than any phone call, because every complaint is tracked in the commission's customer service scorecard.
What to actually do
Six steps, in order. The whole sequence takes about an hour, most of which is waiting for the utility to reply.
Find the deposit on a past bill
Look under "Account information" or "Deposit on file". The principal and the deposit-paid date are both shown.
Calculate interest at the PUC rate
Multiply the principal by your state's rate and the number of years held. On $200 at 5% for 3 years, expect about $30 in interest.
Send a written request
Use the 4-line template above, citing your state PUC rule by exact number. Email or postal mail, keep a copy.
Provide a forwarding address
Put the address inside the email body, not just on a USPS change of address. The utility's mailroom is independent of the account system.
Save the refund confirmation
Keep the closing statement, the deposit accounting and the check or ACH confirmation. The interest line must appear separately, not netted in.
File a PUC complaint if no reply in 30 days
Most state commissions have an online consumer complaint form. Attach your written request, the utility's reply or non-reply, and a copy of the original deposit receipt if available.
Common questions about US utility deposit refunds
Most utilities refund a deposit after about 12 months of on-time payment, automatically as a credit on a future bill. If you move out before 12 months, the deposit is refunded on the final bill. State PUC rules generally cap the hold at 12 months for a customer in good standing, with one allowed late payment per 12 months not resetting the clock in most states.
Every state PUC or PSC sets a minimum rate, typically pegged to the US Treasury one-year short rate or to a published commission index. In 2026 the rates run roughly 4% to 6% annualized, with Florida at the low end (2% for the first 23 months) and Illinois at the high end (~6.5%). The rate is a floor, not a cap, some utilities pay slightly above it as customer-service policy.
Pull any bill from the last 12 months. If a deposit is on file, it appears on the account summary, usually under "Account information" or "Deposit on file". Then check the most recent annual billing cycle for a line called deposit interest, interest credit, or similar. No line item means no interest has been paid out yet, and you are owed the accrued amount. Ask in writing, citing your state PUC rule.
Common at move-out, the utility nets the deposit against the closing balance and issues a single check or credit for the difference. That practice is allowed, but the interest portion must still be itemized on the closing statement. If it is not, ask for a written deposit accounting: principal paid, dates held, interest rate applied, total interest accrued, total refunded. Every state PUC will compel the utility to produce this on request.
Call the utility, confirm the check was issued, and ask them to void and reissue to your new address. Most utilities will do this once for free. The root cause is almost always a missing forwarding address on the close-of-service request, so always provide it in writing when you close the account. If the utility refuses to reissue, file a complaint with your state PUC, which is free and typically resolves within 30 to 45 days.
Yes, in most states. After 12 months of on-time payment with no service disconnection, you are generally entitled to a refund-on-request even without moving. Some utilities trigger this automatically, others require a written request. The deposit can be refunded as a check, an ACH credit to the bank account on file, or a one-time bill credit, customer choice in most state tariffs.
The refund goes to the account holder of record, not the original payer, unless the deposit was formally assigned in writing at the time it was paid. If a parent or employer-guarantor paid the deposit but the account is in your name, the refund will come to you. To reassign, both parties must sign a written request on file with the utility before the close-of-service date.
File a complaint with your state PUC or PSC. It is free, takes 5 minutes online, and most state commissions resolve consumer complaints within 30 to 45 days. The threat of a complaint moves the utility accounting team faster than a phone call. Keep copies of every email and letter, and reference the specific PUC rule that requires deposit accounting in your filing.