What is a New Jersey Electric Generation Service Bond?
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A surety bond will serve as financial assurance of the Principal or the person who is applying for an electric power supplier license’s faithful performance of its duties to the New Jersey Board of Public Utilities. This includes the following:
- Fulfillment of all of its contractual duties that pertain to providing electric generation services to its clients
- That the electric power supplier will not file for bankruptcy
- That all taxes due will be promptly paid
If a dispute occurs due to the electric power supplier licensee’s breach of contract or misconduct, the Obligee of the surety bond will be eligible to file a claim against the bond to recover the financial loss.
This prerequisite is mandated by the Electric Discount and Energy Competition Act of 1999, N.J.S.A. 48:3-49 et seq.
What is the Electric Generation Service Bond amount?
The bond amount is $250,000.
If you have an excellent credit score, you will be eligible for a very low bond premium, or 1% of the bond amount.
Know more by giving us a call. You may also GET YOUR FREE SURETY BOND QUOTE HERE!
How can I get an Electric Generation Service Bond?
To secure this type of bond, the electric supplier license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. 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 prequalification process is fulfilled, we will execute the bond and send it 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 New Jersey
- The surety bond should be made payable to the Treasurer of the State of New Jersey
- The electric supplier licensee should follow the provisions of Title 48 of the New Jersey Revised Statutes, as well as the rules and regulations of the New Jersey Board of Public Utilities
- If the electric supplier licensee violates any of the state laws, rules, and bond terms, the Obligee of the surety bond will be eligible to file for a bond claim
Secure your license! Get bonded! APPLY HERE!