California Electric Service Provider Bond
Know what this is bond can do for you and how to get one fast!
What is a California Electric Service Provider Bond?
The California Public Utilities Commission – in pursuance of the California Public Utilities Code – requires electric service providers to obtain and maintain this surety bond for the following purposes:
- Ensure that the electric service providers will conform to the aforementioned Code.
- Indemnify the clients or any person who will be harmed by the violation or misconduct committed by the electric service providers.
An electric service provider is an entity that offers electrical service within an electrical corporation’s service territory.
This bond should be submitted to the California Public Utilities Commission along with the following registration requirements:
- A UDC-ESP Service Agreement for each Utility Distribution Company.
- A scheduling coordinator agreement authorized by the Independent System Operator (ISO).
- Completed ESP Registration Application Form.
- Resource Adequacy Requirements and Renewable Portfolio Standards Requirements.
- A copy of Section 394.5 Notice to the Energy Division of the CPUC is required of electric service providers who are offering electric service to residential or small commercial customers.
- Fingerprints of personnel.
How does a California Electric Service Provider Bond work?
The Principal (electric service provider) and the Surety (surety bond provider) will be bound unto the Obligee (Public Utilities Commission of the State of California). The Principal is primarily responsible for fulfilling the obligations required by the Code as well as the rules and regulations of the Commission.
If the electric service provider fails to perform the said obligations, the Obligee will file a claim for the benefit of those who suffered damages. The Surety will investigate to validate the claim before any payment is made. If a claim is valid and if the said claim is settled by the Surety, the Principal, under the terms of the indemnity agreement, must reimburse the Surety.
How much does a California Electric Service Provider Bond cost?
The bond cost will range from 1% to 8% of the bond amount. This will depend on the electric service provider’s credit score.
The bond amount is $25,000.
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How can I get a California Electric Service Provider Bond?
The first thing that you should do is to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once we’ve received your application, one of our surety bond agents will contact you regarding the requirements needed to move forward. Our expert surety bond agents will guide you through the whole process. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the indemnity agreement has been signed, we will issue the bond and send it to you!
Get your bond ASAP! APPLY HERE!