New York Energy Broker Bond

Under Public Service Law §66-t, signed into law by Governor Hochul in 2022, all energy brokers and energy consultants operating in New York must register with the PSC and demonstrate financial accountability. After a court ruling in June 2025, the New York State Supreme Court confirmed that a surety bond is an acceptable method of meeting this financial accountability requirement — not just a letter of credit.

The New York Department of Public Service (DPS) has since published a surety bond template and proposed formal rules allowing brokers and consultants to satisfy the requirement with either a surety bond or a letter of credit.

This bond protects the State of New York and consumers by ensuring that energy brokers and consultants comply with all applicable laws, regulations, and orders of the PSC — including the Uniform Business Practices (UBP) and UBP for Distributed Energy Resource Suppliers (UBP-DERS).

How the Surety Bond Works

The New York Energy Broker Bond is a license bond structured as a three-party agreement:

• Principal — The energy broker or energy consultant purchasing the bond
• Obligee — The New York State Department of Public Service, named as the beneficiary
• Surety — The surety company (authorized to do business in New York by the Superintendent of Insurance) backing the bond

If the principal violates applicable laws, regulations, or PSC orders, the Department of Public Service may recover against the bond for:

• Reimbursement of fees or charges improperly collected from customers
• Past-due fees, charges, or unpaid penalties owed to the Department
• Customer reimbursements or other financial obligations in the event of the principal's insolvency, liquidation, bankruptcy, or revocation of registration

If a claim is paid, the principal is required to immediately file a new or supplemental bond restoring the full bond amount.

You need a New York Energy Broker or Energy Consultant Surety Bond if you:

• Act as an intermediary between customers and Energy Service Companies (ESCOs) for the sale of electricity or natural gas
• Solicit, negotiate, or advise on electric or natural gas contracts on behalf of customers
• Assume contractual responsibility for the sale of energy supply services without taking title to the electricity or gas
• Operate as a Community Choice Aggregation (CCA) administrator
• Provide consulting services related to energy procurement for residential, commercial, or government clients in New York

Energy Brokers assume contractual and legal responsibility for the sale of energy services. Bond amount: $100,000.

Energy Consultants advise or act as agents in soliciting, negotiating, or accepting energy contracts on behalf of customers. Bond amount: $50,000.

If you register as both an energy broker and energy consultant, you only need a single $100,000 bond.

You are not required to pay the full bond amount. Instead, you pay an annual premium, a percentage of the total bond amount. Your premium rate is determined by several factors, including:

• Your personal credit score
• Business financial history
• Industry experience 

Applicants with strong credit typically qualify for rates between 1–3% of the bond amount. If you have credit challenges, JW Surety Bonds offers specialized programs to help you secure your bond at competitive rates.

Securing your surety bond is one part of the broader PSC registration process. Here's how to get it done efficiently:

Step 1: Determine Your Bond Amount 

Energy brokers need a $100,000 bond. Energy consultants need a $50,000 bond. If you're registering as both, a single $100,000 bond satisfies the requirement.

Step 2: Apply with JW Surety Bonds

Complete our online application. It takes just a few minutes and only requires a soft credit check. You'll need basic personal and business details, and there is no obligation to purchase.

Step 3: Review Your Quote 

You'll receive a competitive, no-obligation quote by email. Most quotes are delivered instantly. Our team is available to answer any questions about your rate or the bonding process.

Step 4: Purchase and Receive Your Bond 

Once you accept your quote and pay the premium, your bond will be issued and emailed to you immediately. The original will be mailed to you as well.

Step 5: Execute and Submit Your Bond

Both the principal and the surety must sign the bond in the presence of a notary public. The completed original must then be mailed to the Department of Public Service

The DPS has specific requirements for acceptable surety bonds. Here's what you need to know:

• Obligee: The New York State Department of Public Service must be named as the obligee
• Bond Form: The bond must be submitted on the form prescribed by the Department — no alterations to the template are permitted
• Authorized Surety: The bond must be issued by a surety company authorized to transact business in New York by the Superintendent of Insurance. You can verify authorized sureties at the NY Department of Financial Services website
• Continuous Bond: The bond remains in force until the surety is released by the Department or until the surety cancels with 90 days advance written notice to both the principal and the Department
• Notarization: Both the principal and the surety must sign the bond in the presence of a notary public
• Submission: The completed and executed original bond must be mailed to the Department of Public Service at: Department of Public Service
   Attn: Finance and Budget Section
   New York State Department of Public Service
   3 Empire State Plaza, 16th Floor
   Albany, NY 12223-1350

In addition to the surety bond, energy brokers and consultants must complete a full registration package with the PSC, which includes:

1. Registration Form — Filed electronically into Matter 23-01227 on the DPS Document and Matter Management (DMM) system
2. $500 Annual Registration Fee — A non-refundable check mailed to the Department of Public Service
3. Demonstration of Financial Accountability — A surety bond or irrevocable standby letter of credit in the required amount
4. Annual Compliance Filing — Due by August 31 each year, including an attestation that registration information is current, an Officer Certification document, and the annual registration fee
5. Compensation Disclosure — Brokers must disclose their form and amount of compensation to customers

Brokers and consultants that have successfully registered can be found in the DPS Energy Broker and Consultant Directory.

Operating as an energy broker or energy consultant in New York without proper registration and the required surety bond can result in serious consequences under Public Service Law §66-t, including:

• Denial or revocation of registration — The PSC may refuse to register or revoke the registration of any broker or consultant that fails to demonstrate financial accountability
• Prohibition from conducting business — No person, firm, association, or corporation may act as an energy broker or energy consultant in New York without first registering with the Commission
• Enforcement action — Registered brokers and consultants are subject to enforcement proceedings for violations of any applicable law, rule, regulation, or PSC order
• Fines and financial penalties — The Commission has the authority to impose penalties on non-compliant entities
• Loss of ESCO partnerships — ESCOs are prohibited from paying fees or compensation to any energy broker or consultant that is not registered with the DPS, effectively cutting unregistered entities out of the market
• Forfeiture of commissions — Under §66-t, no person may accept any commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating an energy contract if they are required to be registered and are not

• Largest Volume Bond Producer in the U.S. — Our access to the most competitive surety markets means the lowest rates for you
• Fast Approvals — Most bonds are approved and issued the same day
• All Credit Types Welcome — We have exclusive programs for applicants with all credit profiles
• Expert Support — Our surety specialists understand the New York energy broker registration process and can guide you through it
• 100% Money-Back Guarantee — If the DPS doesn't accept your bond, we'll refund your payment in full

Can I use a surety bond instead of a letter of credit?

Yes. Following a June 2025 court ruling, the New York State Supreme Court confirmed that PSL §66-t allows energy brokers and consultants to satisfy the financial accountability requirement with a surety bond. The DPS has since published a bond template and proposed formal rules incorporating this option.

What's the difference between an energy broker and an energy consultant?

An energy broker assumes contractual and legal responsibility for the sale of energy supply services to customers, while an energy consultant acts as an advisor or agent in soliciting, negotiating, or accepting energy contracts. Brokers need a $100,000 bond; consultants need a $50,000 bond.

Do I need a separate bond if I'm registered as both a broker and a consultant?

No. If you register as both, a single $100,000 bond satisfies the requirement.

How long does the bond last?

The bond is continuous — it remains in force until the surety is released by the Department or cancels with 90 days' written notice.

What happens if a claim is filed against my bond?

If the DPS recovers against your bond, you are required to immediately restore the bond to its full amount by filing a new or supplemental bond. As the principal, you are ultimately responsible for repaying any amounts the surety pays on a valid claim.