What is a Maryland Electricity Broker/Aggregator Bond?
Know the importance of this surety bond today!
What is an Electricity Broker/Aggregator Bond?
Those who will act as an electricity broker or aggregator are required to submit a surety bond as part of their license requirement.
Under the rules of the Public Service Commission of the State of Maryland, in pursuance of Chapter 20.51.03 of the Code of Maryland Regulations, a surety bond will serve as a financial guarantee in case the electricity broker or aggregator fails to perform the obligations required by law.
When this happens, the Obligee (to whom the surety bond is furnished) will have the right to be compensated by filing a bond claim.
An electricity broker is a person who acts as an agent or a middleman in the business of buying or selling of electricity. An electricity broker is not allowed to sell electricity or gas directly to the consumer.
An aggregator, on the other hand, is a broker that obtain rate offers from suppliers for the benefit of a certain group of consumers such as, but is not limited to, the following:
- Homeowners association
- Religious groups
- Cultural groups
What is the Electricity Broker/Aggregator Bond amount?
The bond amount is $10,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium. Bond premium starts at $100.
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get an Electricity Broker/Aggregator Bond?
You can easily get this surety bond from us! We will guide you through the entire process. We’ll make sure that you will understand what you are getting into.
Here’s how to do get bonded:
- You have to send an application to us. If you are ready to do that now, you may APPLY HERE!
- After we have received your application, we will ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Your surety bond will be issued and sent to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Maryland
- The surety bond should be made payable to the Maryland Public Service Commission
- The electricity broker/aggregator is obligated to obey the provisions of the Public Utilities Article § 7-507 et seq., the rules and regulations of the Maryland Public Service Commission, and Title 20 of the Code of Maryland Regulations
- If the electricity broker/aggregator commits a violation, the aggrieved party will be eligible to file a claim against the surety bond