District of Columbia natural gas supplier license bonds.
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What the gas supplier bond actually guarantees

D.C. Code § 34-1671.05 requires every natural gas supplier to hold a license from the Public Service Commission, and lets the Commission require an applicant to post a bond or other approved security instrument to insure its financial integrity. The PSC’s rules in 15 DCMR Chapter 47 turn that into two separate bonds. Under § 4701.1, any person who engages in the business of a Natural Gas Supplier in the District must hold the license, and the definition of "Natural Gas Supplier" in § 4799.1 covers brokers and marketers as well as sellers.

The Integrity Bond (§ 4705) is required of any applicant or licensee that cannot show the Commission a BBB- or better credit rating, an A2/P2 commercial-paper rating, or an unused bank line or parent guarantee the Commission deems adequate. It is $50,000 for suppliers and marketers and $10,000 for brokers and for aggregators that do not take title to gas. Even a rated applicant may be required to bond on a case-by-case basis. The Customer Payments Bond (§ 4704) is a separate bond for any supplier that charges deposits or collects prepayments: $50,000 before the first deposit is accepted, then, within six months and again every December 31, at least the balance of deposits and prepayments you certify.

Both bonds name the Commission as sole beneficiary and must be continuous. The PSC can draw on an Integrity Bond only where customers suffer actual damages, after finding the licensee insolvent or unable to meet its obligations. It is not insurance for you — if the surety pays a claim, you repay the surety. A supplier that stops serving customers and cancels its bond has its license suspended immediately. This bond is written separately from any electricity-supplier bond; the PSC requires separate forms for each service.

You need this bond if you’re