Be it KSEB or any other state electricity board, a security deposit is collected is worked out based on the average of the energy consumption. Normally, KSEB charges a security deposit equivalent to two to three times the average energy charges per month.
The security deposit is collected at the time of applying for the electricity connection. The exact amount is worked out based on the type of connection is requested. If a tenant applies for the connection at a rented premises, the security deposit charged is 50 per cent more than for the owners.
As for reimbursement of the deposit, you need to submit a prescribed application form at the time of requesting disconnection. The deposit will be refunded through cheque after deducting dues if any. As far as my knowledge goes, the security deposit is never adjusted in bills.