A Pennsylvania Public Utility Bond is a type of surety bond required by the Pennsylvania Public Utility Commission (PUC) for all electric generation suppliers (EGS) who operate in the state. This includes suppliers who provide electricity to retail customers, as well as those who broker or aggregate electricity services. The bond ensures that the EGS will comply with all of the Pennsylvania Public Utility Code (Title 66), including:
- Providing accurate and timely billing information to customers
- Maintaining reliable and adequate service to customers
- Complying with all PUC regulations regarding tariffs, rates, and services
- Reimbursing customers for any damages caused by the EGS’s negligence
The bond amount is typically $250,000, but it may be higher depending on the EGS’s gross receipts. For generators, the bond amount is the greater of $250,000 or 10% of their gross receipts from the previous fiscal year. For brokers and marketers, the bond amount is $10,000.
How do I obtain a Pennsylvania Public Utility Bond?
At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:
- Complete the easy to navigate and secure online application. 1
- Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day. 2
- Sign some paperwork and pay the bond premium
Once these steps have been completed, the Surety Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the license.
2- Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required
The cost of the bond is usually between 1% and 3% of the bond amount. Surety1 will shop its many markets to procure the right price at the right terms.
Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.
What is the purpose of the Pennsylvania Public Utility Bond?
Individuals wishing to offer, render, furnish, or supply electricity or electric generation services must be licensed. The Public Utility Bond is one of the licensing requirements. The bond ensures the applicant’s financial responsibilities and obligations. It must be maintained the entire time the individual is licensed with the Commonwealth of Pennsylvania.
What are other licensing requirements?
- Completed application form
- Business entity filings and registration
- Proof of service
- Financial records, statements, and ratings
- Supplier funding method
- Broker payment structure
- Completed the Tax Certification Statement
- Technical Fitness
- Proposed Marketing Method