Supplier Application & Resources

EGS Financial Security – Electric Generation Suppliers are required to maintain a financial security instrument the entire time it maintains an EGS license with the Commonwealth of Pennsylvania. (Required for EGS Suppliers and EGS Brokers.)

If a licensed EGS fails to file the required financial security at least 30 days prior to the expiration date of its financial security, it may cause Commission staff to initiate a formal proceeding that may lead to cancellation of the EGS’s license, fines and penalties, removal of the company’s information from the Commission’s website, and notification toall electric distribution companies in which the EGS is licensed to do business.

• EGS - Broker/Marketers: Unless ordered by the Commission, an EGS - Broker licensee is required to maintain a security level of $10,000.
• EGS - Supplier/Aggregator: The Commission's regulations at 52 Pa. Code §54.40(d) require the security level, or bond amount, for each EGS – Supplier licensee to be the greater of 10% (or 5%, from Security Reduction Petition Approval) of the licensee's most recent reported 4 quarters of gross receipts or $250,000. 

90 Day Renewal Notification Letter (Sample) – A Secretarial Letter that is sent out by the Commission to notify EGSs (includes Supplier/Aggregator and Broker/Marketers) of the impending expiration date of its current financial security instrument. The Letter is also a notification to EGS - Suppliers of a possible need to increase the financial security.

Bond (Fixed-Term Template) – A template of the language required to use a Bond as a financial security instrument.  This bond expires every year and must be renewed.  EGS - Suppliers may need to adjust the amount based on the EGS - Supplier’s reported gross receipts.  Bond renewals do not require a Certificate of Service (above).

Bond (Continuous Template) – A template of the language required to use a Bond as a financial security instrument.  This bond does not expire every year. EGS - Suppliers may need to adjust the amount based on the EGS - Supplier’s reported gross receipts.  Bond renewals do not require a Certificate of Service (above).

Letter of Credit (Continuous Template) – A template of the language required to use a Letter of Credit as a financial security instrument.  This Letter of Credit does not expire every year. EGS - Suppliers may need to adjust the amount based on the EGS - Supplier’s reported gross receipts.  Letter of Credit renewals do not require a Certificate of Service (above).

EGS Supplier and/or EGS Broker may file a petition to use a Parental/Corporate Guarantee as its financial security instrument.  The petition must be approved by the Commission prior to the entity filing a fully executed Parental/Corporate Guarantee.

Parental/Corporate Guarantee (Template) – A template of the language required to use a Parental/Corporate Guarantee as a financial security instrument. May not be altered.

Regulations – Link to the Final Order on Bonding requirements. From the Public Meeting of July 24, 2014, at Docket M-2013-2393141.

Checklist for Financial Security Reduction Petition – This checklist contains the basic information and requirements for submitting a petition to reduce an EGS Supplier’s financial security to the greater of $250,000 or 5% of Gross Receipts. If approved, a Financial Security Reduction Annual Compliance Filing is required annually to renew the approved reduction. The Financial Security Reduction Annual Compliance Filing must be filed 90 days prior to the approved EGS's current security expiration or anniversary date. A Certificate of Service (above) is required for this filing.

An EGS Supplier (NOT EGS Broker) with a previously approved Financial Security Reduction may file an Annual Compliance Filing to renew its currently approved 5% financial security instrument level from the greater of $250,000 or 5% of Gross Receipts. A Certificate of Service (above) is required for this filing.

Checklist for Financial Security Reduction Annual Compliance Filing– This checklist contains the basic information and requirements for submitting an Annual Compliance Filing requesting to renew an EGS Supplier’s Commission approved Financial Security Reduction.  The Annual Compliance Filing is required annually, and it should be filed 90 days before the current financial security expiration or anniversary date.  A Certificate of Service (above) is required for this filing.

Tax Status Letter (PA Department of Revenue) – A current letter from the Pennsylvania Department of Revenue is required for the Initial Petition as well as each renewal of the EGS – Supplier’s Financial Security Reduction.  Required annually, and it should be filed 90 days before the current security expires to ensure the reduction does not expire.