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New York State Energy Broker and Energy Consultant Surety Bond
Compliance Guide Under Public Service Law § 66-t
Energy Brokers and Energy Consultants operating in New York State are subject to mandatory registration and compliance requirements enforced by the New York State Department of Public Service (DPS) and the New York Public Service Commission (PSC). One of the most important of these requirements is obtaining the New York State Energy Broker and Energy Consultant Surety Bond.
This bond is a statutory registration requirement under Public Service Law (PSL) § 66-t and is designed to protect consumers, promote transparency, and ensure accountability in New York’s energy marketplace.
This guide explains who needs the bond, what it is, why it is required, how much it costs, and how to secure it, with direct references to New York law and regulatory authority. Apply for your NY State Energy Broker and Energy Consultant Surety Bond today!
New York Energy Broker and Consultant Bond Requirements at a Glance
Who needs it: Energy Brokers and Energy Consultants operating or soliciting business in New York
Bond amounts:
$100,000 for Energy Brokers
$50,000 for Energy Consultants
Regulating authority: New York State Department of Public Service / Public Service Commission
Statutory authority: Public Service Law § 66-t
Purpose: Consumer protection and regulatory compliance
Get your NY State Energy Broker and Energy Consultant bond now!
Who Needs the New York State Energy Broker and Energy Consultant Surety Bond
The New York State Energy Broker and Energy Consultant Surety Bond is required for any entity operating or soliciting business in New York State as an Energy Broker or Energy Consultant.
You are required to obtain this bond if you:
Act as an Energy Broker, arranging, negotiating, or facilitating energy supply contracts
Act as an Energy Consultant, providing advisory services related to energy procurement, pricing, or strategy
Market or solicit energy-related services to New York consumers or businesses
Seek registration with the New York Public Service Commission
The requirement applies regardless of business domicile. Out-of-state companies are not exempt if they conduct energy brokerage or consulting activities affecting New York customers.
What Is the New York State Energy Broker and Energy Consultant Surety Bond
The New York Energy Broker and Energy Consultant Surety Bond is a financial guarantee that ensures registered entities comply with applicable laws, regulations, and consumer protection standards.
It is a three-party agreement involving:
Principal: The Energy Broker or Energy Consultant
Obligee: The New York State Department of Public Service
Surety: The bonding company issuing the bond
The bond does not protect the business. Instead, it protects consumers and the State by providing financial recourse if the bonded entity violates statutory obligations, engages in deceptive practices, or fails to comply with PSC regulations.
Why New York Requires Energy Broker and Consultant Surety Bonds
New York’s energy market involves complex pricing structures and long-term financial commitments for consumers. To mitigate risk, the State requires Energy Brokers and Consultants to demonstrate financial accountability through surety bonding.
The bond requirement ensures that registrants:
Follow ethical marketing and disclosure standards
Comply with all applicable statutes and regulations
Remain financially accountable for misconduct or noncompliance
Protect consumers from deceptive or unfair practices
This requirement reinforces market integrity while providing regulators with an enforcement mechanism when violations occur.
Statutory and Regulatory Authority
Public Service Law § 66-t
The bond requirement is established under Public Service Law § 66-t, which mandates that Energy Brokers and Energy Consultants (EB&Cs) register with the New York Public Service Commission.
PSL § 66-t authorizes the Commission to impose conditions on registration, including financial security requirements such as surety bonds, to protect consumers and ensure compliance.
New York State Department of Public Service (DPS)
The New York State Department of Public Service administers and enforces EB&C registration requirements. DPS oversees compliance, investigates violations, and may take enforcement action against unbonded or non-compliant entities.
Uniform Business Practices (UBP)
Registered Energy Brokers and Consultants must comply with the Uniform Business Practices (UBP), which govern:
Marketing and solicitation standards
Consumer disclosures
Recordkeeping requirements
Complaint handling procedures
UBP-DERS
Entities involved in distributed energy resources are also subject to the Uniform Business Practices for Distributed Energy Resource Suppliers (UBP-DERS), which impose additional operational and consumer protection obligations.
Bond Amount Requirements for Energy Brokers and Energy Consultants
New York imposes different bond amounts based on registration type:
These amounts represent the maximum liability of the surety, not the cost of the bond. The required amounts reflect the higher potential consumer impact associated with brokerage activities.
How Much Does the New York Energy Broker and Consultant Surety Bond Cost
The cost of the New York State Energy Broker and Energy Consultant Surety Bond is typically 2% annually of the total bond amount and is determined through underwriting.
Premiums can be influenced by:
Business & Personal credit profile
Financial strength
Industry experience
Bond amount required
Because the $100,000 Energy Broker bond carries greater regulatory risk, it often involves more detailed underwriting than the $50,000 Energy Consultant bond.
Premiums are paid annually and must remain active to maintain PSC registration.
Underwriting and Approval Process
The New York Energy Broker and Energy Consultant Surety Bond requires underwriting by the surety company.
Underwriting may include:
Personal & Business Credit evaluation
Ownership and management review
Industry experience assessment
Review of business financial statements
Working with a surety bond agency experienced in New York energy regulation can significantly reduce approval time and avoid documentation delays.
How to Secure the New York Energy Broker or Energy Consultant Surety Bond
The process typically includes:
Determine Registration Classification
Identify whether you are registering as an Energy Broker or Energy Consultant.Confirm Bond Amount
$100,000 for Brokers or $50,000 for Consultants.Submit a Surety Bond Application - Apply now!
Provide required business and financial information.Underwriting Review
The surety evaluates risk and determines premium.Bond Issuance
The bond is issued for submission with PSC registration materials.
Experienced surety specialists help ensure the bond meets DPS and PSC requirements exactly as required.
Consequences of Operating Without the Required Bond
Operating without the required New York Energy Broker Surety Bond or Energy Consultant Surety Bond can result in:
Denial or revocation of PSC registration
Regulatory enforcement actions
Financial penalties
Inability to legally solicit or conduct business
Reputational harm
Maintaining an active bond is a condition of lawful operation and compliance under New York law.
Why Work With a Specialized Surety Bond Provider
Energy compliance bonds involve regulatory nuances that differ from standard license bonds. Working with a provider experienced in New York Public Service Law § 66-t ensures:
Accurate statutory alignment
Proper bond wording
Efficient underwriting
Faster approvals
Expert handling reduces regulatory risk and keeps your registration on track.
Don't Wait, get your NY Energy Broker and Consultant Surety bond now!
Get Started Today
If you are registering as an Energy Broker or Energy Consultant in New York, securing the correct surety bond is a critical compliance step.
A1SuretyBonds.com specializes in surety bonds and understands the requirements imposed by the New York State Department of Public Service, the Public Service Commission, and Public Service Law § 66-t.
Are you licensed in multiple states? Let us know and we can help you secure the bonds for all your licensing needs, Nationwide!